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So about 2 years ago my aunt got a new car and my sister bought her old one of her for 4k and my sister just gave that car to me.

The problem is my sister used to pay 89$ a month for car insurance and my aunt told her out of no where that it went up to 190$ a month (she stayed on her insurance plan and left it in her name)

When I got the car I asked my aunt if I could put the car in my name and asked what benefits my sister was getting on the insurance and she said all. I asked her if she could edit it and only give the car liability. I don’t want all that extra stuff I have a low paying job for now and it makes it hard financing for what I want to do like funding things to get me out of this job problem.

She told me she don’t know if she can do any of that because she put the car up for collateral. This is something she has never mentioned before and if that’s the case why would she have my sister buy it off of her if there was a possibility she could lose it at any Time.

So what I wanna know is if there is a way to put the car in my name and if she would still be able to update the insurance policy only on that car for only liability. Any insight would help and would be grateful

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    This is a material fact that should have been disclosed. The intention of your aunt was to fraud you. This sale and purchase contract is void. Which country are you from? I'm sure there might be some Acts related to contract.
    – Utkarsh
    Jan 14 at 18:01
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    [In India, you can't sale any asset to someone else if you have pledged the asset against any loan. I'm not sure about regulations in your country which you haven't disclosed.]
    – Utkarsh
    Jan 14 at 18:03
  • The car was never officially 'sold', unless maybe your sister has written proof. Lienholder would have to approve the sale, probably. How much is owed for whatever the car is collateral?
    – mkennedy
    Jan 14 at 18:09
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    Where in the world are you? Local laws likely will be relevant. When your sister bought the car, did she pay cash up front, get a loan, or what? Did ownership/registration get transferred properly? What kind of insurance, if any, is required by law in order to drive the car? Have you tried to just insure it yourself without going through your aunt?
    – yoozer8
    Jan 14 at 18:40

2 Answers 2

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It sounds like your aunt is utterly dodgy. She's supposedly sold the car to your sister for 4K, but also used it as collateral on a loan, She's also continuing to insure the car in her own name, but charging your sister for it, and the amount your sister has to pay for that insurance has mysteriously more than doubled. Remember that if the car is in an accident, it's the person who's insuring it that gets paid.

Don't have anything to do with that car unless you know that it is actually yours, that the debt it was used for collateral on has been paid, and it's insured in your own name.

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  • One aspect to consider, though: the OP seems to be in a financially difficult situation, and appears to be getting the car (at least usage of it) for free
    – njzk2
    Jan 14 at 19:27
  • @njzk2 for Free?
    – Utkarsh
    Jan 14 at 19:38
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Who is on the title of the car doesn't matter for insurance purposes, your policy will cover the driver and whatever cars they drive. You need to change the insurance policy, not the car's title.

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    That actually depends on the local laws, in some countries the insurance is issued for the owner and additional drivers have to be explicitly listed and don't carry insurance of their own.
    – littleadv
    Jan 14 at 20:27

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