insurance? We could save up to $1000? The car is a 1999 Mazda Miata. I would give my parents cash for the car payment and insurance. I would REALLY be the only one driving it. Also, could this work when I go off to college(in state but I would be living separately )?
My parents already have three other cars under their name not including the miata

No, each person under a policy needs to be assigned to a car. If theres 3 cars, one for you, your mom, and your dad, you need to go under one. If there were 2, then you could be secondary to one of them.