Re: Auto Insurance Question
In most (all?) states the owner of the vehicle is liable if it is involved in an accident. IOW, it's the vehicle that is insured, not the driver.
Having said that, if you were driving when an accident happened the owner and/or injured parties would probably sue you personally for having contributed to the accident. And a normal insurance policy wouldn't cover that, only a special policy that covers you regardless of what you're driving could be counted on to protect you.
As said above, this is a situation you need to discuss in detail with several insurance agents. However my gut feeling is that you should run, not walk, away from this deal if the current owner wants to keep the car in his name while you're driving it and making payments. That senario is risky from so many different angles that I wouldn't go near it. There are good reasons why state laws require the sale of an automobile to be done in writing and reported to the state promptly. No way would I make payments on a car without properly transfering title to my name ASAP.
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