Car Insurance Question (Sorry!)

[jonpurdy]

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GF is buying a car. Lives at home with her mom. Father lives abroad and only lives at home for three months or so per year.

Can GF put her parents at primary and secondary drivers and her as tertiary? Or would she have to be primary or secondary herself.

Her Mom currently has a car but I'm not sure the insurance situation on it.

(I suppose one could turn this into a motorcycle question, haha.)

 

[GreyGhost]

If she is actually the primary, this is obviously insurance fraud and if she gets caught (which likely won't happen until after a large claim), the claim could be denied and insurance would be tragically expensive for a while after (for her and her parents).

As far as actually being able to do this insurance companies aren't dumb, typically they price based on the most expensive car going with the least experienced driver (unless there is a specific exclusion [OFPC 28a]). The father being out of the country and not having a car may allow you to get the paperwork through (with a third car the insurance companies know exactly what is happening, the second they may not catch on).

For me, the downside is so big, that the minimal upside wouldn't be worth it.

EDIT:
Is she buying the car or her mom? If the car is in your gf's name, this whole scam is a non-starter.

 

[jonpurdy]

More info after Mom called her insurance company:
Mother is now primary driver on both cars. (I didn't think this was possible.)
Didn't mention father's absence. People at the dealer and at her work told her that she doesn't need to mention father's absense.

Edit: forgot to mention what I sad. Basically I said it was a bad idea and that she needed to mention all the details. Thanks for the info and verification that not being upfront was a terrible idea!

 

[jonpurdy]

Update: spoke to my insurance agent. She confirmed that it's a pretty bad idea to not be upfront about who is driving what. Like, colossally bad. And that insurance companies do investigate stuff like that, especially if it's about to cost them hundred of thousands or millions of dollars.

Fortunately I was able to convince the GF to tell her mother to be upfront about it with the insurance company.

 

[laydee]

If your GF buys a car and titles it to her mom or even if she doens't title it, her mom can be primary driver and her as a secondary. She drives it all the time? Where does it say that's against their policy. I'm young, everyone I know has their car on their parents name which is why they can afford to have that expensive car without the super expensive insurance.

 

[jonpurdy]

If your GF buys a car and titles it to her mom or even if she doens't title it, her mom can be primary driver and her as a secondary. She drives it all the time? Where does it say that's against their policy. I'm young, everyone I know has their car on their parents name which is why they can afford to have that expensive car without the super expensive insurance.

Her Mom already has a car and is already primary on it.

 

[VifferFun]

She drives it all the time? Where does it say that's against their policy. I'm young, everyone I know has their car on their parents name which is why they can afford to have that expensive car without the super expensive insurance.

It's part of the Insurance Act and it is clearly stated right on the Ontario Insurance Application:

Warning - The Insurance Act provides that where:
(a) an Applicant for a contract, (i) gives false particulars of the described automobile to be insured to the prejudice of the Insurer, or (ii) knowingly misrepresents or fails to disclose in the application any fact required to be stated therein; or
(b) the Insured contravenes a term of the contract or commits a fraud; or
(c) the Insured wilfully makes a false statement in respect of a claim under the contract, a claim by the Insured, for other than such statutory accident benefits as are set out in the Statutory Accident Benefits Schedule, is invalid and the right of the Insured to recover indemnity is forfeited.

Have you heard of Material Misrepresentation? When you apply for insurance you must list out every driver as well as their percentage of use on each vehicle. When you sign the dotted line, you are promising that you have answered all questions truthfully. If you lie, this is misrepresentation (aka fraud). Your claim can be denied, and your insurance history is adversely affected. This is why one of the questions on the application is as follows:

During the last 3 years, has any automobile insurance policy issued to the applicant or any listed driver been cancelled or has any claim been denied for material misrepresentation?

No insurance company is interested in insuring a liar. FYI, here is a link to the Ontario Insurance Application:
http://www.fsco.gov.on.ca/en/auto/forms/Documents/OAP-1-Application-and-Endorsement-Forms/1213E.pdf

 

[Sushii]

Honestly, i don't think it matters who's primary or secondary. The insurance rates are going to be based off the highest risk operator.

Things are only different when someone is primary and someone else is occasional.

 

[GreyGhost]

Hi everyone you GF has buy a car if she relates to her mom very well so i don't think that it has a question like this that everyone between her and her mom primary and secondary , if she is using her car without hesitation so i don't think so that any problem can there , in fact i don't know about car insurance if car is insured so GF will be get easy if not so she cover and take her car easily to her mother , thanks

wtf?

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