Originally Posted by
spankaveli
The way I understood the thread, they aren't buying a new car. The kid is driving an already owned vehicle. Insurance is with the car, not the driver. His friend doesn't have to have his name listed on his policy for him to be able to drive the car and be insured. The proof of insurance will be in the car in his parents name.
in the case of a borrowed car, yes, his friend will not have to have his name listed on his policy to drive. BUT, in the event of an accident, the friend's insurance will kick in first. then they will try to get subrogated (reimbursed) by the kid's (driver's) insurance company. if there isnt one... the kid's parents will be held liable and can be sued for any and all charges and costs involved in accident.
that is why the insurance covers the car AND the driver.