Grandson just got his Driver's License. He's an OK kid, not been in any trouble. Hunts and fishes for a hobbies. He has High School and a job after school so 3 or 4 trips most days to taxi him somewhere. My wife does a half of that.

He wants to borrow my spare vehicle so he can drive himself. It's a 17 year old beater with minimum coverage only on it. It's worth maybe $2,500. I'm OK with loaning it out if he checks out in it to my satisfaction, but my insurance says no. Can't add him on our insurance because he is not a household member. If I let him drive it they say it won't be covered.
They also say his mom can't insure the car for him unless it's in her name.

I hadn't planned on giving up ownership and I have 8 Grandkids. Ain't going to give all 8 a car! Don't want to play favorites either. Just want to loan out my car for a while! His Dad plans to help him get a car eventually but the Dad (divorced) isn't dependable so I'm not counting on it. Grandson is not 18 so he can't have a car in his name can he.

This is crazy, surely to God I can loan a car to someone and maintain my coverage. Am I missing something, is the insurance agent blowing smoke up my butt?

This is in Tennessee, and company is State Farm.

Thanks.

If he has his own car insurance in his name on a different vehicle I was under the impression he could drive your car "on occasion" without issue.

"On occasion" can be used loosely.

I'll be interested in the other responses here.

quote:

Originally posted by Copefree:
If he has his own car insurance in his name on a different vehicle I was under the impression he could drive your car "on occasion" without issue.

"On occasion" can be used loosely.

I'll be interested in the other responses here.

So maybe if he is added to his Mom's policy it would be allowed? She hasn't added him yet, he just got the license this week, it's an additional $90 month that she really can't afford. He has stated he would pay it himself from his job earnings.

I was shocked that I could not add him as the primary driver of that car on my policy as a family member, just because he doesn't live in my household.

I let my son borrow an extra car that I own. He doesn't live with me and he is covered under my insurance. I just had to provide my insurance company with the address the car will be garaged.

They are viewing him as more than a sometime driver, and this as a more permanent loan, which is probably accurate. Your cars are covered if you occasionally lend them to someone, but not for a long term loan/driver.

I don't think your agent is being tricky.

I'd actually look at the language of your policy. I'm guessing a loan is fully covered (age may be a factor though) and I'm 99% sure he's covered but its all policy specific.

quote:

Originally posted by Copefree:
If he has his own car insurance in his name on a different vehicle I was under the impression he could drive your car "on occasion" without issue.

Correct. Or if he is listed on a policy somewhere else. It doesn't even have to be in his name.

His mother may not want to add him to her policy but she really doesn't have a choice. If he winds up driving any car in that household and gets into a wreck, it won't be covered.

She should be thankful it's only $90/month. I've seen insurance policies raise $4000 from adding a new operator.