Car insured but owner does not drive?

[Dragonbits]

State: Illinois

I am currently a named insured along with my mother on our insurance policy.

My mother recently didn't renew her drivers license, so she can no longer drive. She has mild dementia, she doesn't realize her license is no longer valid. She got the renewal notice from the DMV and wanted to take the drivers test, which at age 92 she needs to take every year. I didn't arrange to go down to the DMV with her, and after a few months I took the notice and since it's no longer in her view she forgot about it. None of us feel it's safe for her to drive even if she could pass the test. And she never want to drive, I or my wife drive her, so generally it isn't a problem. And I have all the keys to the cars in the event she attempts to drive, I feel safer that way.

I don't want to argue with her about selling the car to me unless it's absolutely necessary.

If I remove her from the auto policy, but she remains the sole owner of the car, does this create any sort of future problem with that car if involved in any sort of accident? (As mentioned, I am already one of the named insured on the policy and my wife is a listed driver.)

 

[PayrollHRGuy]

There is simply no way the carrier is going to allow the owner not to be named on the policy in a situation like this and doing so really gains you nothing.

 

[Dragonbits]

There is simply no way the carrier is going to allow the owner not to be named on the policy in a situation like this and doing so really gains you nothing.

Are you implying there are situations where the drivers of a car are insured but not the owner?

The basic gain is the premiums are cheaper.

I asked the carrier if I could remove my mother from the policy, they said no problem they would have to rewrite the entire policy as it is her policy. Though I am not sure about if there is difference between who "owns" the policy and the named insured. I believe all named insured are responible for the premiums and all can change the terms of the policy, The policy is from 1962, which might also be the reason they wanted to write a new policy.

The car has always been owned by my mother, but when I asked the carrier the question about removing her I didn't point out she owns the car, the agent may not have realized that.

I will ask the carrier specifically if my mother still owns the car can it be covered for the listed drivers but not her? I just wanted to know, if they agree to that, what is the liability?

 

[PayrollHRGuy]

I really doubt the policy is from 1962 with no changes. Auto policies are at most 1 year terms. While your mom may well be with the same carrier and the same agent since 1962 there is simply no way the policy is that old.

The state requires insurance. The insurance must be in the name of the registered owner of the car.

 

[Zigner]

To address another incorrect idea that you have: The named insured on the policy are not (necessarily) responsible for the premium.

 

[Dragonbits]

To address another incorrect idea that you have: The named insured on the policy are not (necessarily) responsible for the premium.

I got that idea from this forum, an old post I read.

 

[Dragonbits]

I really doubt the policy is from 1962 with no changes. Auto policies are at most 1 year terms. While your mom may well be with the same carrier and the same agent since 1962 there is simply no way the policy is that old.

The state requires insurance. The insurance must be in the name of the registered owner of the car.

As to age of policy, I was only repeating what Allstate told me.

This forum suggested I needed to read the full policy to understand things like UIM insurance. When I asked the agent about where to get a copy of the "full policy" documentation, they said it doesn't exist at their local agency and I would have to ask at corporate headquarters for a policy that old.

Finding it hard to believe myself, I asked two different sources at Allstate the same question as to age, I got the same answer.

For sure there are constant changes to the policy, cars added and subtracted, new amendments, etc.

 

[Zigner]

I got that idea from this forum, an old post I read.

Please point out the old post (for reference).

 

[Zigner]

Why do you feel that it's appropriate for you to offer advice to others on insurance matters?

 

[PayrollHRGuy]

As to age of policy, I was only repeating what Allstate told me.

This forum suggested I needed to read the full policy to understand things like UIM insurance. When I asked the agent about where to get a copy of the "full policy" documentation, they said it doesn't exist at their local agency and I would have to ask at corporate headquarters for a policy that old.

Finding it hard to believe myself, I asked two different sources at Allstate the same question as to age, I got the same answer.

For sure there are constant changes to the policy, cars added and subtracted, new amendments, etc.

It is for all intents and purposes a new policy every policy period. My Allstate policy renews every 6 months.

No, the local office doesn't keep a copy. But they do have access and certainly can request it FOR THE POLICYHOLDER. You have no right to request it.

 

[Dragonbits]

Please point out the old post (for reference).

Not likely to happen, I am up to 302 pages of old treads, I have no idea which post it was. But if for some strange quirk I come across s similar statement, I will post it.

Does it seem that important to you what might have been said in something like 2012. or 2011, etc?

Practically speaking for me, I manage all of the bills regardless of who is actually responsible for them.

I was really curious if there is some distinction between who owns the policy and the named drivers. There doesn't appear to be on the declarations page, both our names seemed to be used equally. But Allstate had said the policy was owned by my mother.

For a time, I suspect Allstate was confusing my father with myself, we have the same names, though I have a middle name and he didn't. And to further that possibility, in talking to the agent recently they told me they didn't have my SS number on file. Some time ago (10 years or so) I became concerned with this possible confusion, they changed it to XXXX Jr . Though I think they have always had my correct driver's license.

 

[quincy]

Here is a link to Dragonbits' previous thread:
https://forum.freeadvice.com/threads/basis-for-pain-and-suffering.654540/

 

[Zigner]

Does it seem that important to you what might have been said in something like 2012. or 2011, etc?

Only for the purposes of pointing out that you misconstrued what was said.

I was really curious if there is some distinction between who owns the policy and the named drivers.

It's the same as the difference between your mom owning her house and your mom letting you live in the house.

 

[Dragonbits]

Why do you feel that it's appropriate for you to offer advice to others on insurance matters?

Why do you feel that it's appropriate for you to offer advice to others on insurance matters?

You are a long time poster, you should understand that you need to address these questions to someone specific rather than in general.

In this tread I was asking for advice from the experts on "car insured but owner does not drive" and have not offered any advice of my own. I assume you aren't addressing this to anyone else who has offered advice?

 

[LdiJ]

State: Illinois

I am currently a named insured along with my mother on our insurance policy.

My mother recently didn't renew her drivers license, so she can no longer drive. She has mild dementia, she doesn't realize her license is no longer valid. She got the renewal notice from the DMV and wanted to take the drivers test, which at age 92 she needs to take every year. I didn't arrange to go down to the DMV with her, and after a few months I took the notice and since it's no longer in her view she forgot about it. None of us feel it's safe for her to drive even if she could pass the test. And she never want to drive, I or my wife drive her, so generally it isn't a problem. And I have all the keys to the cars in the event she attempts to drive, I feel safer that way.

I don't want to argue with her about selling the car to me unless it's absolutely necessary.

If I remove her from the auto policy, but she remains the sole owner of the car, does this create any sort of future problem with that car if involved in any sort of accident? (As mentioned, I am already one of the named insured on the policy and my wife is a listed driver.)

One thing that you should consider...if the owner of the car has no insurance, and gets sued because she is the owner of the car, she will have no coverage and would have to pay for an attorney out of pocket. Any money you save by not having her on the policy would be far outweighed by the potential risk.