Child Moving - Do We Need to Put Car and Insurance in Their Name?

[djwman]

My 21 year old daughter's car is in my name for insurance purposes, and we helped her buy it. She is graduating college in May and moving about 3 hours away for her job. Do we need to get the car titled and insured in her name, or can we leave it my name?

 

[VolAgent]

The short answer is, it would be best for her to own the vehicle and have her own policy. There are many issues with you owning the vehicle and her be a driver on your policy, these are only compounded with her being several hours away and potentially in another state. She is currently listed on the policy, correct? Otherwise you and she may be in for a world of hurt if there is a claim.

Sure, you could probably find a way to retain ownership of the vehicle and keep her as a driver on your policy, but there are so many issues that it would simpler and better protected for her to have her own coverage, even if it costs more.

 

[Alanburger1]

Another side to your current arrangement is that you have given daughter permission to use your car. She can't legally transfer that authority to another person. Changing the title and insurance to her name is the right thing to do to protect your liability also. It's time.