Is it risky being listed as primary policyholder/driver on auto policy when I don’t own the car but own all the assets?
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My live-in partner wants to list me as primary policyholder & primary driver on a shared auto insurance policy, in order to save money on premiums (my credit rating/insurance history are very good, so my rates would be considerably lower than hers). I no longer own a car, and am not on the title of either of her two cars, both of which she uses for work and to drive us around. Her current policy, upon which I’m named as a secondary driver, is in her name and lists her as primary policyholder & primary driver. She says listing me as primary would also allow us to afford add’l umbrella coverage @$1M, to protect my assets (she has none) against lawsuits in the event of an accident. I’m afraid instead it might expose me to more risk of being sued if she got into an accident with one of her cars and hurt someone, for the very fact that I DO have the vulnerable assets, while she has none. I’m also concerned whether my driving record or insurance rates could be negatively affected if she got into an accident.”
Asked October 14, 2015
1 Answer
Being listed as the primary policyholder/driver on an auto insurance policy when you don't own the car but own all the assets can carry some risks. It is important to understand the potential risks and benefits before making any decisions. One of the main risks of being listed as the primary policyholder/driver on an auto insurance policy when you don't own the car is that you may be held liable for any accidents or damages that occur while the car is being driven. This means that if the driver of the car causes an accident, you may be responsible for paying for any damages or injuries that result, even if you were not driving the car at the time. This can be particularly risky if you have significant assets that could be at risk in a lawsuit. Another potential risk is that your insurance premiums may be higher if you are listed as the primary policyholder/driver on a car that you don't own. Insurance companies generally consider the ownership of the car when calculating premiums, so if you don't own the car, your premiums may be higher than if the car were insured under the actual owner's name. On the other hand, there may also be some benefits to being listed as the primary policyholder/driver on an auto insurance policy when you don't own the car. For example, if you have a good driving record and credit score, you may be able to get better rates or discounts on your policy. Additionally, if you have a personal umbrella policy, it may provide additional liability coverage that could help protect your assets in the event of an accident. Ultimately, the decision to be listed as the primary policyholder/driver on an auto insurance policy when you don't own the car should be based on a careful consideration of the potential risks and benefits. If you are concerned about the risks involved, you may want to consider alternative options, such as having the actual owner of the car listed as the primary policyholder/driver, or exploring other insurance options that may better suit your needs.
Answered October 28, 2015 by britt5689