Insuring A Car You Don't Own
"Some companies will list the young adult as the 'named insured' on the policy with the parents listed as having the financial interest," Newman says. "Some companies will only issue a policy to the legal owner with no exceptions. Other companies will insure the car, list the young adult driver and charge a rate based on the primary driver's [the young adult's] age, driving record, mileage to work, garaging location, etc."
Honesty is the best policy
Above all, be honest with the insurance company, Newman says.
"The best first approach is full disclosure," he says. "A lot of times folks think they can save a few dollars today by not disclosing everything, and that can be really dangerous. Part of the contract you sign says you are going to provide full information."
If you try to pull fast one on the insurer, you might find yourself without coverage and be on the hook for tens of thousands of dollars if you cause an accident."I've seen it happen, and it's very unfortunate," Newman says.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts