Best Insurance Option

Submitted by Anonymous (not verified) on Wed, 04/30/2008 - 18:10

I want to finance my first car but I am having trouble on deciding what to do with registration and insurance. My primary residence is in NY, currently where I have my license. I also own a home in PA which has way cheaper insurance.

I was wondering if it was possible for me to keep my NY license but get my car registered in PA and insured over there. I wouldn't even mind having my mother have the title in her name with registration and insurance and have me as a driver but I was reading some of the financing contracts that state the title must only be in my name since I will be the only one financing the car. Am I able to get a car registered in PA if its in someone else's name?

Thanks for your help.

Posted: 30 Apr 2008 08:48 Post Subject:

Able to do it? Yes. Is it legal in those two stated? That is a different question. Will there be any problems with your insurance? Yet another question.

Posted: 01 May 2008 10:41 Post Subject:

Registering and insuring the car at a different state where the driver is licensed, hmmmmm.....I think that can be done, though I can be wrong. However, you may wish to speak to a local agent and find out the possibilities.

Posted: 01 May 2008 10:46 Post Subject:

I'm confused :? is your mother signing the contract as a co-signer?? If you are the one financing the car, why will you have her name on the title? I guess this will only add to the complications.

Regards,
BarbaraHuber

Posted: 01 May 2008 07:58 Post Subject:

What you're asking about is refered to as misrepresentation of risk and it's a serious issue for reasons that, I'll admit, are difficult for the general public to understand.

The issue here is the reason insurance is more expensive in New York.

Insurance company actuaries base rates on actual statistics on accidents that occur in a given geographical area (we call them territories) Stats such as over all number of accidents, average severity, percentage that result in lawsuits, percentage of total accidents that result in death, etc, etc, etc

As a result car insurance costs more in those territories that statistically cost the companies more money. Kind of makes sense huh?

If enough people did what the OP is suggesting it would not take long for PA's auto insurance rates to rise to the same level as NY's or even higher.

My agency is in a suburban area and I encounter this often when children move out of their parent's house in the suburbs to an apartment in the city. They are shocked that the rates are generally 25-30% higher in the city, they want to know if they can keep using their parent's address. I have to explain it to them like this.

It's the same situation, if your primary residence is in NY, you need a NY policy. Shop around for the best value, but don't misrepresent the risk to a PA insurance agent. It's not fair to anyone, the company, the people of PA and quite possibly to you as any serious accident is likely to raise questions about where you actually reside and when this comes out the company is likely to cancel your coverage. You would then be in the position of shopping for a policy at time when you've just caused an accident and most companies will want to know why your previous policy was cancelled and may decline to offer you coverage based on the past misrepresentation.

Posted: 01 May 2008 08:48 Post Subject:

Excellent response Fishman. As an agent in PA...you will fall under misrepresentation of risk. If you are a resident of NY you must have a NY insurance policy. If you are getting the car and having it as your mothers, then she must be the primary driver of the car. If you are the primary driver of the car it must be your primary residence. If you are to do as you are hoping to do then when an accident occurs you will have to explain this then seek new insurance which will be difficult since you misrepresented yourself in this occurance. Plus when meeting with an agent all of this will come up so no knowledgeable and respectable agent will do this for you.

Posted: 03 May 2008 03:12 Post Subject: insurance

Ok..who can answer this for me. I do know someone who RESIDES in New York. However........has her car insurance in PA. I don't know how she could have done this, since insurance companies need valid information, etc. My question is, if she gets in an accident, what can happen? Is this 'illegal' to do?

Posted: 03 May 2008 12:57 Post Subject:

SDchargersfan,

This does happen a lot. As I think I told the OP above, it's not exactly "illegal", certainly unethical.

When someone tells me his/her address, I tend to believe them.

As for what happens if your friend has an accident, maybe nothing but, again, as I told the OP, often the true primary residence will come out (it's usually where the accident happens) and the company usually responds by cancelling or non-renewing the policy.

Posted: 03 May 2008 01:19 Post Subject: insurance

Would there be a good chance her license can be suspended for this? I don't know what address she is using to get her insurance, in another state ( and I don't think i want to know).

Posted: 05 May 2008 02:30 Post Subject:

I don't know what happens on the law stand point but we would no-renew or cancel on the insurance end. Once that would occur you would then need to let every agent know why that occured which could put doubts in their mind as well. I just know as Fishman said, it is unethical and if I know, as an agent, that they are trying to do this I won't write it and encourage them to do it the correct way.

Posted: 07 May 2008 02:22 Post Subject:

I would suggest you to get your car registered and insured in NY only.It will be little difficult to travel to PA everytime a legal matter comes up.By the way,consult your insurance agent.I hope he will be of great help.

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