Whose insurance policy should a car be on?
Question Details: My parents just bought a car to give to my 18 year old son for graduation. They are the registered owners of the car, but the car for all other intents and purposes "belongs to" my son. The car will reside at his our home, not the home of his grandparents. Whose insurance policy should the car be on? My parents, who own the car, or my son's ours, who will be the primary driver of the car and storing it at our house? Thank you in advance for your help
The insurance should be that of the registered owner of the car (grandparents), but the grandparents should have your son named as an authorized driver on their insurance policy.
The registered owner of the car is liable if the driver of the car is at fault in an accident even if the registered owner is not present at the scene of the accident..
If your son is not listed on the policy as an authorized driver and is at fault in an accident, the insurance company will deny the claim because your son was not an authorized driver. The grandparents would be personally liable and have to pay out of pocket if their grandson is at fault in an accident.