A prospect wanted to start a car insurance policy.  I asked him if he was the registered owner of the vehicle to be insured.  He replied that he was, but that his father is also listed as a co-owner.  I asked him why his father is listed as a co-owner and he told me thats how it was registered years ago when he lived with his father. 

I told him his father is liable as well if he is listed on the car registration.  The insured told his father, but the names on the registration remained. 

Well, I wrote the policy and excluded the father.

3 months later, the insured loaned his minimum coverage liability car to a friend.

The friend hit and killed a motorcyclist.

The lawyers contacted me and asked for a copy of the policy application.  They already had a copy of the car registration showing the insured’s father.  The attorney asked me if the father had other policies with me.  They knew the father had a business and property.

The attorney was going after the father’s estate to recover for the claim and death.

As you can see, you need to make sure all vehicles owned are solely owned by you.  If, for some reason, a person has an interest in your car you will need to make sure your liability coverage is high enough to protect both of you in case of an accident.

If you have any question contact your insurance agent or this author.