Multiple Primary Drivers on Policy?

[nampas]

Hello. I'm in NY, and would like to share a car with a friend. We can arrange the title and registration in any way (single ownership, joint tenancy etc). My question, is there any way to get a car insurance policy such that we're both listed as primary policy holders? I basically want us to be separately liable for any accidents we may get in. If my friend crashes the car, I don't want to be potentially sued, and vice versa.

Is that possible?

 

[fed up]

Most insurance policies list Primary and SPOUSE as primary policy holder. How would you title the car? The policy can list both drivers but the policy owner would see any chargeable accident listed on the policy and that accident would follow the policy owner if he/she tries to change carriers. Only solution I can think of is a non-owner policy for the partner if it is available in your state but those are generally for occasional use and your own policy could be cancelled if the other driver is not listed as a driver. I don't see a solution for what you want to do.

 

[marindependent]

You do not want to do this, even if you could.

 

[adjusterjack]

I'm in NY, and would like to share a car with a friend.

What kind of friend? Boyfriend, girlfriend, live-in, something else? Who is going to be using the car, with what frequency, for what purpose? Those are important details with regard to your question.

If my friend crashes the car, I don't want to be potentially sued, and vice versa.

Nothing actually prevents a lawsuit and it doesn't matter who drives the car and causes the accident. The policy will pay and the accident will be charged against the policy.

 

[nampas]

Thanks for the responses y'all, much appreciated.

@adjusterjack :

> What kind of friend? Boyfriend, girlfriend, live-in, something else?

Just a good friend. We don't live together. The car is for recreational use for the both of us; we live in NYC and can't justify owning a vehicle separately, but having 50% access to a car is appealing.

> Nothing actually prevents a lawsuit and it doesn't matter who drives the car and causes the accident. The policy will pay and the accident will be charged against the policy.

In the case that the policy doesn't cover all medical expenses for those involved in the accident, it was my impression that someone could come after the policy holder for additional damages? That's why we could hopefully find some kind of arrangement where we're both on the policy, but separately liable. That way if I got into accident with Joe Driver, he wouldn't be able to come after my friend in court (and vice versa).

 

[nampas]

How would you title the car?

We could title it any way. Currently I have the title, but I could always do a partial sale of the vehicle to the friend.

 

[fed up]

Can't see a DMV allowing this. You could try to sneak it through and an insurance agent may not ask for proof of marriage but all I see is problems if one person or the other gets into a bind. The policy application will still ask for named insured and spouse and a claim against the policy will follow the policy owner

 

[Allen Trent]

Even if a DMV or even if an insurance company allowed it, it wont eliminate your liability for lawsuits against either of you if the other "owner/insured" is responsible in some sort of accident. not all accidents involve the same car owned & insured & not all claims are paid if a law was broken, etc. the other party you put on the title or you could be responsible for those lawsuits when coverage didnt pay, wasnt enough, etc.

Also, if both listed as named insureds, claim checks would get issued to both parties & can also develop their own set of problems.

This is really no different than all the reasons to not put a child on as an owner of a house or a bank CD & a house or bank CD dont drive down the highway at 80 mph or at 230am.

I dont see it knowingly being allowed, but then again a ton of people are renting their cars out on Turo or driving their car for Uber/Shipt & dont realize they likely have no insurance protecting the car, etc unless perfectly & knowingly insured for that business risk

My guess is that you would be charging the friend for using your car or at a minimum you would be paying insurance, gas, maintenance & then charging the friend. In essence, you have started a business & take in revenue for car use. This likely means you need commercial auto & liability to cover the exposure no different than if I choose to rent my house out on VRBO 30 weeks per year.

 

[marindependent]

I can see the appeal to a consumer in trying to do this, but this is a potential nightmare if something goes wrong: Claim, Lawsuit, Dispute between the two parties, etc.

In some ways this is similar to opening a partnership business with another.

I would advise anyone that wants to do this to NOT do it.

 

[adjusterjack]

In the case that the policy doesn't cover all medical expenses for those involved in the accident, it was my impression that someone could come after the policy holder for additional damages?

True. Which is why you should have high liability limits, even on your own.

That's why we could hopefully find some kind of arrangement where we're both on the policy, but separately liable. That way if I got into accident with Joe Driver, he wouldn't be able to come after my friend in court (and vice versa).

Let's start with the basic premise that you can lend your car to your friend once in a while with no problem because a driver of your car with permission is defined as an insured under your policy. However, your policy takes the hit for a rate increase if he causes an accident in your car.

Regular use is another story. Your insurance company will want to know that and have him added to the policy as a driver so that you can be charged the appropriate rate for him. Then he can drive it as much as is necessary without finagling the ownership. Your policy still takes the hit for a rate increase if he causes an accident in your car.

What is regular use? Well, once a month maybe not. Every other week, every week, you'll have to notify your insurance company of the practice and add him to the policy. You still don't need to finagle the ownership.

Sure, he can get a named - non owner policy and be protected for his own liability. But that doesn't help you because you can be sued for "negligent entrustment" (google it). And I think NY still holds an owner responsible for the acts of his driver even without "negligent entrustment." NY agents can weigh in on that.

A lawsuit under your policy will not bode well for you if you don't reveal that your friend uses your car regularly.

Titling the car in both your names is a bad idea as has already been explained. A lot of unexpected thing can happen and if, one day, you get into a dispute about who gets the car, you're pretty well screwed.

Bottom line question, here (I should have asked it) is your friend already using your car? How often? For what purpose? And is there already a problem with an accident?

This type of thread doesn't usually get started unless there already is an issue.