Jump to content

Menu

Insuring Car without License


Recommended Posts

I'm in my early 20s, and my husband and I finally have enough saved to purchase a used car.

 

The problem is, neither of us has a license and won't be able to get one until we have a car. My permit expired.

 

Does anyone have experience with purchasing a car without a license? We live above my parents, so we figured we'd put my Dad on the insurance until I get my license and am able to take it over. We don't want to have him purchase the car under his name, because he's worried it might affect his disability benefits and he has a payment plan with the IRS and they'd think it was his money the car was purchased with.

 

So, I know it's possible for an unlicensed individual to be on the car title, but how does this work with insurance?

 

We are in Massachusetts if that helps.

 

Thanks!

  • Like 1
Link to post
Share on other sites

It might be best to contact the agent or company who handles your parents' home and auto insurance and see what they say. They can tell you what's legal and give you a quote. Maybe there'd even be a discount for multiple policies in the same household, although I don't know if you and your DH would be considered a separate one given your situation. Then contact other agents and see what they would charge.

  • Like 2
Link to post
Share on other sites

It might be best to contact the agent or company who handles your parents' home and auto insurance and see what they say. They can tell you what's legal and give you a quote. Maybe there'd even be a discount for multiple policies in the same household, although I don't know if you and your DH would be considered a separate one given your situation. Then contact other agents and see what they would charge.

My parents do not currently have any policies. They rent as well, so they don't hAve home insurance, and they don't have a vehicle, so no car insurance.

  • Like 1
Link to post
Share on other sites

My parents do not currently have any policies. They rent as well, so they don't hAve home insurance, and they don't have a vehicle, so no car insurance.

 

They should have "Renters" insurance, to cover the contents of the house or apartment, and to provide Liability coverage, in case someone claims to have been injured while on the property.

  • Like 1
Link to post
Share on other sites

The problem is, neither of us has a license and won't be able to get one until we have a car. My permit expired.

Would a friend with great car insurance coverage for 3rd party driver let you borrow for a driving test? Or would it be affordable to rent a car from a driving school for a driving test because those have insurance for student drivers?

 

My hubby had an international drivers license when we bought a car here in California. Then he took the driving test and bought insurance after. The dealership did required that he has a license though and used that for vehicle registration.

 

AAA was more helpful than State Farm when we were shopping for car insurance. You can just walk in and ask them to generate a quote for you.

  • Like 1
Link to post
Share on other sites

I had bought a car and put insurance on it with no license about 10 years ago, I think? Always possible to buy a car without a license - unless it's a new car and the dealership has rules against it. It may still be possible to put insurance on it without a license nowadays, but it may cost a fair amount. Call many insurance companies directly and find out for sure if they even will do it - WITHOUT giving them personal information yet. Just because sometimes they dump your credit and you don't want all of them to do it at once.

 

Wait, does your dad have a license? Because there's no issue getting him insured on a car that is in somebody else's name.

 

And just because somebody *should* have renters insurance doesn't mean they can afford it, people, even if you think they should be able to because it's so cheap, or whatever.

  • Like 1
Link to post
Share on other sites

my nephew was living with his mother when he bought a car.  he had a license - her's had expired.  his insurance was exorbitant.  he moved out to his own place, and his rates dropped.

 

I would expect, if your name is on the title as an unlicensed driver - expect to pay much higher rates and a harder time finding a company that *will* insure you.  (our state requires proof of insurance for the car being used for the test.)

 

I would strongly urge you to get a license first.  you have to renew your permit anyway just to be able to take the driver's exam.  they won't allow you to do that without one.  (at least our state won't. our state also requires a car with everything working. when 2ds took  his driver's test - the back-window break light was out. they made him  come back after it was replaced.)

Link to post
Share on other sites

They should have "Renters" insurance, to cover the contents of the house or apartment, and to provide Liability coverage, in case someone claims to have been injured while on the property.

 

many people who rent can't afford rental insurance.  they're cutting things close as it is.

as for someone claiming injury - I would expect that would fall under the owner's insurance. (depending upon the situation.)

  • Like 1
Link to post
Share on other sites

I appreciate the replies.

 

As has been mentioned by a few others, while renters insurance is important, they cannot afford it.

 

I've failed two driving tests (stupid parallel park), which is why we need a vehicle I can practice in before sitting for another test. Once we have the car, I will be able to get my permit again (have to sit for the test again) and then practice in our vehicle (which will be the one used for the test).

 

We don't have any friends nearby who have a vehicle I can practice in and use for the test. We live in a small town with the closest DMV 30 minutes away.

 

Both parents have their licenses, but no vehicle.

 

I've read that, in order to insure a car, one must be on the title and/or registration. As my parents owe the IRS money, I'm wary of having either of them on the title. We may end up buying the vehicle privately, gifting it to my parents (so the IRS wouldn't think they could afford a car but not pay them back), and having them gift it back once either my husband or I have a license.

 

We're confused on all the regulations and legalities involved, so I appreciate the insight.

Link to post
Share on other sites

 

 

I've read that, in order to insure a car, one must be on the title and/or registration. As my parents owe the IRS money, I'm wary of having either of them on the title. We may end up buying the vehicle privately, gifting it to my parents (so the IRS wouldn't think they could afford a car but not pay them back), and having them gift it back once either my husband or I have a license.

 

We're confused on all the regulations and legalities involved, so I appreciate the insight.

In my state if you are gifted a car you need to pay sales tax before you could register it. So in your case you'd have to pay sales tax when you gift it to your dad and again when he gifts it back to you.

  • Like 1
Link to post
Share on other sites

Well, you will need to practice driving with someone who has a license, correct?  I would think you could buy the car under both your parents' and your (and your husband's) names.  One of your parents can go along with you for the ride every time you practice.  From our experience, individuals of the same household can be listed on auto insurance, even if they don't currently have a license.  So, as long as your parents have their license then at least some licensed drivers are on the insurance policy, and then you and your husband can be listed as additional household members.

 

When your parents are no longer in the car with you as you're driving and after you have your license, I suppose you can always remove them from your insurance policy.

 

Now that I'm thinking of it, my husband and I bought our last car together and are both listed as the main people on our insurance policy, and my husband doesn't have his license.  Two of our daughters are on it with us, and for a long time, one of them only had her permit.  

 

So, I'm sure it's all possible, but you should contact your insurance agent to find out the best way to work it.

Link to post
Share on other sites

The IRS is not going to care or find out if your parents have a used car. They are will not levy a lien on it or likely ever even find out about it. Disability and SS won't care unless the car has a high value.

 

Buy the car and put one parents name on the title and then insure the car. I was an unlicensed driver listed in the car title when my husband and I first got together. It did not affect our insurance rate. Expect the insurance to go up though when you get your license or if your husband gets his unless he's over 25.

Link to post
Share on other sites

I would look into a driving school to help you out.  They can help you with learning to parallel park and they will let you rent the car to take the test on the same car that you learned to park in. In our state, the driving schools even do all the tests, the DMV is only for getting the actual plastic licence.  It may cost you a bit of money ($450 here in WA) but at least you will have your licence and can move on from there. 

Edited by Tap
  • Like 1
Link to post
Share on other sites

I've read that, in order to insure a car, one must be on the title and/or registration. As my parents owe the IRS money, I'm wary of having either of them on the title. We may end up buying the vehicle privately, gifting it to my parents (so the IRS wouldn't think they could afford a car but not pay them back), and having them gift it back once either my husband or I have a license.

 

We're confused on all the regulations and legalities involved, so I appreciate the insight.

 

My boyfriend has insurance on a car that is titled in my name and registered in my name. My daughter has insurance on a car that is titled in my name and registered in my name. I don't know if that is specific to my state, but an insurance agent in your state will know.

 

It is my understanding that If they owe the IRS money, there could put a Lein on your car, but only if the car is worth more than some random amount. I wouldn't even bother putting their name on it even if it wasnt true.

Link to post
Share on other sites

Driving school is the best way for you to practice driving and to  get your licenses. Take your driving tests in their car.  They have insurance to cover you.

 

Once you do have a valid drivers license, then, consider buying a car, but, before you do that, be sure that you have a commitment from the insurance company that they will insure you, as a newly licensed driver, at a premium you can afford to pay.

 

Until you have some experience driving, and a good record (no accidents or tickets) you will probably pay higher insurance rates. Also, you will not be able to rent a car from the major companies until you have had your license for about 5 years, or you will pay a higher rate.  I believe I read that on the Dollar Rent a Car web site, before we rented from them in Orlando in April.

 

GL

Link to post
Share on other sites

You will need to check with the insurance company, but most policies are only count if the driver has a valid liscense, meaning that if a person without a liscense drives the car, the insurance is not valid. I have heard of police officers writing tickets for not having valid insurance if the driver of the car does not have a liscense even if the car's owner has insurance because the insurance is no good with an unliscensed driver.

This makes me think that you could purchase the car and I surancefor it, but you would not be able to drive it until you had a valid liscense (or a learner's permit with a liscenced driver in the car)

Link to post
Share on other sites

It really varies quite a bit from state to state and even between insurance companies. My dh doesn't drive anymore and no longer has a license, and trying to figure out the car insurance was a nightmare. Different companies would tell me wildly varying things that they swore up and down were state law. Your best bet is probably to make an appointment with an agent and talk to him or her about it.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...