I offered to "rent" a car to my niece (16) and then have it passed down to her sister (14) and then to my kids (11 and 7) down the line to keep it in the family. The car is paid off and I have the title in hand. My question is what would be the best course of action for handling the auto insurance, which would be paid by my sister, and the title?
Transfer the title to my sister now and then get it back when my kids can drive?
Keep the title in my name and hopefully, they can put it on her policy without the title?
Or something else that I don't know about.
Background: We live in Texas and 2 streets away from each other.
Question about titles and insurance for my nieces
byu/Philcasi inInsurance
Posted by Philcasi
2 Comments
If you’re keeping the title, you need to insure the vehicle a your sister/niece have no ownership in the vehicle. You need to coordinate coverage carefully with your insurance broker/agent/company, as the vehicle should be ‘garaged’ at your sister’s place, and you need to add all driving age people to that policy/location, which could be very tricky.
Most auto insurers will break down insurance price by vehicle. so just have your sister pay you the share of the auto insurance for that vehicle.
You should just do a personal lease. You retain the ownership but the lease allows them to insure the car themselves by giving them the insurable interest. you can google personal leases and there are a bunch you can just throw all of your info into.
Edit: just verify they have you listed as the lienholder.