My MIL gifted us a car. Paid off, transferred the title to our name. She is wanting to continue to carry it on HER insurance for a while though. This seems weird and like it might cause problems because the title and registration is no longer in her name. Advice?
Mother in law gifted a car to us
byu/roomtempcoff33 inInsurance
Posted by roomtempcoff33
7 Comments
Depends on the company. Mine allows this, but I’d check with your agent and make sure.
She has no insurable interest in the car.
For the most part, unless she lives with you, you cannot carry insurance on your car under her policy. Some carriers will allow it, but most do not. Also, if the car is signed over to you and it’s now titled/registered in your name, it IS weird that she actively wants to keep the insurance in her name.
Get your own insurance ASAP is my advice.
Not only would they not provide her insurance if they knew about it, but it would be fraud to attempt to skirt the system.
She doesn’t own the vehicle, so has no interest in it. Same reason I can’t take out an insurance policy on my neighbor’s house.
Get a policy in your name. Your Mother-in-law has no insurable interest in the vehicle as she’s not the titled owner. You will have problems when the vehicle is totaled and it’s your name but not hers.
If she lives with you, she can add you as a named insured. Otherwise tell her she’s mistaken.
A mixup with registration or inspection is a slap on the wrist. Being uninsured lands you in jail.
She can’t. It’s not her car anymore once she signs the title over to you si she will have no insurable interest.