Insurance question regarding taking over car payments?friend taking over my car payment without going to bank?

I can no longer afford my car payments because of recent layoff. Luckily I found a friend who is willing to take over my car payments. We did our own contract thingy since he cannot take over the financing through the bank (personal issues). I know its not a good idea but I would like to keep the car under my name or the bank until he pays it off. I would like to know how to get insurance in his name in the state of California. I already have insurance, do I add him or he adds me. Can anyone please advise.

Ustun Inan Insurance

Most people with bad credit also have bad driving record.Since you are letting him to drive your car,without changing the title to his name, any incident happening involving the car will reflect on you. As an example, if this guy parks the car in front of a fire hydrant and gets towed away, the bills will be sent to you.If he is blamed with a criminal act,you will have to explain that this person was not you.
Be aware that if he does not pay,you are still responsible for the bank loan and the car.
The first advice: Ask him to contact a licensed insurance agent and buy a "full coverage"insurance,and name you as "Additional Insured" as the owner of the car.Don't let him have the car,until the policy gets issued and you have a copy of it.
The second advice is you keep your own insurance in your name.You should not add friends to your policy unless you live together and have closer relationship.

Ustun Inan Insurance

manx girl Isle of Man.

Be very careful, make sure that the insurance is in the name of the main driver... you can come a cropper, the main driver being the person who owns the car. so in effect if he is driving your car as the main driver and only insured as an additional driver you could find that in the event of a claim you are not covered, and also the details of where it is parked at night have to be correct. Insurance companies are working to the letter.You will have to keep the insurance in your name if you are the owner of the vehicle in the event of a claim, or worse finding out that you have lost the vehicle because someone wasn't insured in a smash! This person should be able to purchase their own insurance to drive any vehicle surely.I would feel very uneasy, but very important make sure he is at least down as a second driver on your car, which it is until you cancel the deal with the lease company...and its garaged/night time unattended address submitted to the insurance company.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: