Do you have any income?
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I’ve asked this question my agent… the answer is no… you would be fine for collision if you were driving it, but if the car is dinged while parked on the street, you have no insurable interest with the car so shouldn’t submit a claim for it. This is to limit insurance fraud. He also says insurance companies will always look for a reason to not pay a claim, so don’t give them one.
You guys could both insure it, but a comprehensive claim should go through their insurance otherwise you would need to be added to their policy.
Yes, I have a income
If your 17, with a fresh license and close no driving record, Im pretty sure your insurance payment will be higher than the actual lease payment if the vehicle being leased by your relative.
If its your relative, than better to add yourself to their policy so you are able to drive the car as well as be covered.
I dont get “relatives” who agree to risk their credit to lease the family members a car, but not add them to their insurance policy, to avoid the risk of premiums going up 
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Pennywise, pound foolish!
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I’d do as others have said and check with your insurance agent.
This is a little too much info, but probably good info for others to know… I’m in my early 30s, have an extremely clean driving record and no accident history. But when I was shopping for my current m5 I asked our family’s insurance broker to price out the car for me so I could know what I was going to be facing. Turned out the premium to be on my own standalone policy was going to be about $350/month. Ouch.
My in-laws and us have various assets with insurable interests, so the broker recommended adding the m5 to my in-laws larger policy that covers homes, cars, etc. I was permitted by BMW and the insurance company to lease the car in my name only and be added as a driver to my in-laws policy. The premium is now $130/month. Saves me a couple grand each year!
The same didn’t apply when I bought my truck and we ended up needing to have myself and father-in-law on title as well, which is no big deal. Ended up saving a boatload on insurance premiums and it’s kosher.
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What is the difference between “extremely clean” and just “clean” records?
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A trip to court to power wash them? 
Must be detailed.
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Makes sense. Clean is when you’re free of moving violations. Extremely clean is when you dangle an employee of the DMV off the balcony of a rooftop bar until they agree to clear your record of what must have been ‘clerical errors’.
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Ye ole Suge Knight
Rumor has it, he was only knighted after one of the lesser princes was dangled from the Buckingham Palace balcony.
Notably, his car insurance rates were the lowest in town prior to the small matter of vehicular manslaughter.
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On a similar topic,
What is the correct way to lease a car under my name which my parents will primarily drive (they live out of state).
- Leasing it for them as a gift; they have excellent credit and can get the car themselves (so not a straw purchase as above)
Lease is under my name; I am making payments; car is registered to my address.
Should I add them to my policy? Can I add them to my policy if their drivers license is out of state?
Am I correct that they wouldnt be able to add it to their policy since car is registered to me and registered in another state?
Thanks
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The third parties financial situation doesn’t make it a straw deal, my understanding (IANAL) the fact that the 1st party is representing that they are leasing it for themselves to be primarily driven by them and kept in the same household, but it will actually primarily be driven by a third party elsewhere (eg out of state) - that’s the straw in the straw deal.
I think it would be easier to justify if you were purchasing and not leasing, because you’re driving around in someone else’s collateral. And if, for instance, your parents lived at a beach house or shared a Beach House where you might all be together a third of the time and you have it a third of the time and they have it 1/3rd of the time that might be fungible.
The insurance implications have been discussed. IMO If you are “leasing a car for them”, the “most correct” thing is for them to lease it and you make the payments (their autopay hits your CC). I imagine others will have different opinions.
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It’s still a straw deal. A straw purchase is a financed purchase in which the person financing the vehicle will not be the primary possessor or user of the vehicle. While technically it’s supposed to only apply in the case that someone is using their good credit on behalf of someone with bad credit - most dealers will not touch any deal in which someone is buying for someone else because if they get called on it they can lose their franchise, dealer license, or capital arm credit.
If they’re able to qualify on their own, they should cosign the loan/lease with you and then it is no longer a straw purchase. Or just purchase it themselves and you send them the payment $, if that’s what you want to do for whatever reason.
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Thanks for the replies; never knew about this straw rule.
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Does it make a difference if the other party’s name (ie. my mom) is on the lease, but she lives in another state?
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So I can understand what the rules are…what if the other party resides at the same address but lease is not in the person’s name (ex. my mom lives with me? Or what if a wife’s car is only on husbands name?)
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If the party using the car is on the lease, there is no issue;
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If it’s at your address, you are considered to be in possession of the vehicle you’re financially responsible for and it’s not a straw deal.
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Thanks again
Re #1
“Does it make a difference if the other party’s name (ie. my mom) is on the lease, but she lives in another state?”
“If the party using the car is on the lease, there is no issue”
—In this scenario, would the other party’s name have to be on my insurance policy as well? Is it possible to add someone to a policy that lives in another state?
Lastly, if I wanted to do this with an existing car…do car companies allow you to add another person’s name to an existing lease?
Thanks
for all those having car insurance questions that slightly deviate from the norm, two words: Insurance broker. They make sketchy stuff happen.
1a. Anyone on the lease would have to be an insured on the car, to my knowledge. Either person could probably be the primary, but that would be a question for the finance manager handling the specific lender.
1b. I would not think it would be possible to add a person as a borrower to an existing lease.
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