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I have a car that's been paid off and I have the title in hand and I would like to let my sister borrow it for indefinite amount of time. Could be a year or years or a few months.
What would be the easiest way to do this?
I might have to pay for her insurance as well.
Do I just add the new car to the insurance and add my sister as another driver?
Not sure how insurance works but can you assign a specific person to a car?
Like insure myself for the new car I'm getting and insuring my sister on the current car.
Do I need to transfer the title to her and have her register the car under her name?
I'm guessing she is not a member of your household.
The absolute best way is to GIVE your sister the car and let her get her own insurance. That way if anything happens, the claims or traffic tickets don't go on against your insurance.
That means you make sure she qualifies for insurance on her own and go with her to the DMV to have the car titled to her.
The worst way is to put the car and her on your policy because tickets and accidents get surcharged on your policy.
Besides, once you tell your insurance company that she's not a member of your household, your insurance company might not want to do it in the first place.
I'm guessing she is not a member of your household.
The absolute best way is to GIVE your sister the car and let her get her own insurance. That way if anything happens, the claims or traffic tickets don't go on against your insurance.
That means you make sure she qualifies for insurance on her own and go with her to the DMV to have the car titled to her.
The only issue is you said you want to let her borrow the car for an extended period of time. Do you ever plan on asking for the car back? Changing the title will give her ownership to do whatever she wants with the car. If you want money out of the car, you can sell it to her for a low price, change the title, and she gets her own insurance.
I agree. Do not "loan" the car. Let her assume ownership, if for no other reason, you don't need the legal hassles if she got into an accident.
Transfer the car to her. In some states, in-family transfers do not have to pay sales or use taxes. Let her get her own insurance. If you have to help her pay for it, and are willing to do so, no legal liability should fall on you.
Most assuredly, you need to talk to your insurance agent before you do anything.
Thanks for the replies.
I guess the best way is to transfer the title to her and have her insure herself.
If we aren't in the same household we can't be under the same plan? (like family plan)
I don't mind give away the car to her since it's not worth much and I just got a new car today.
Thanks for the replies.
I guess the best way is to transfer the title to her and have her insure herself.
If we aren't in the same household we can't be under the same plan? (like family plan)
I don't mind give away the car to her since it's not worth much and I just got a new car today.
Make your life simple. Have her get her own policy. If you want, you can pay for it, but keep things separate.
If we aren't in the same household we can't be under the same plan? (like family plan)
No.
Underwriting rules require that all the drivers and vehicles IN the household be underwritten as a household.
There would otherwise be no control over when, where, and how she used the vehicle or even to whom she entrusted. Any restrictions you might give her would be unenforceable. When your policy gets surcharged for accidents and tickets incurred by her, your rates could double and you will sorely regret having her on your policy even if your insurance company would allow it (doubtful).
Quote:
Originally Posted by jaehoppa
I guess the best way is to transfer the title to her and have her insure herself.
I don't mind give away the car to her since it's not worth much and I just got a new car today.
Then give her the car and be done with it.
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