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 Posted: Wed Nov 17, 2010 5:35 am Post subject: if i give my 18yo son a car that is in my name, do i have to |
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| my son does not live with me and he just got his license, i told him that he would have to cary the insurance but i would give him a car. I dont want to put the title in his name alone, am i still liable if he gets into an accident and the title is in my name if the insurance is not on my policy. Can he put insurance on a car that is not in his name. |
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gysgtdonniewilsonusmc
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| Posted: Wed Nov 17, 2010 10:24 am Post subject: |
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Depends on the state where the accident happens but in most the owner can also be held liable for the use of the vehicle.
Yes he can insure the vehicle as he has an insurance interest in the vehicle.
You may want to see about you being listed as an insured under his policy. |
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tcope
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| Posted: Wed Nov 17, 2010 3:36 pm Post subject: |
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If you are not going to remain on title, be aware that if you "give" your son a car valued at more than $13,000, you will have a gift tax liability on the amount over $13,000. If you are married, then you and your husband can give a combined gift of $26,000 with no gift tax liability.
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MaxHerr
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| Posted: Thu Nov 18, 2010 7:00 am Post subject: |
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| Quote: | | If you are married, then you and your husband can give a combined gift of $26,000 with no gift tax liability. |
Will there be any gift tax liability if it's a combined gift worth $24,000 or $27,000 from the OP and her husband? |
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JeremyHolter
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| Posted: Fri Nov 19, 2010 10:58 pm Post subject: |
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| Quote: | | am i still liable if he gets into an accident and the title is in my name |
I am not a lawyer or an insurance adjuster, but as I understand it, yes you are. When my wife was hit by a young driver here in California who did not own the car, the owner of the vehicle was just as liable as the driver. When we sued in small claims court for the property damage, we sued both the owner and the driver.
If I were you, I'd talk to the insurance company, but this is what I would want to avoid: your son gets a low limit policy, hits someone, and that someone comes after you for all the damages beyond the limit of his policy. I'd at least check into it!
Good luck to you!  |
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dave18
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| Posted: Sat Nov 20, 2010 12:59 am Post subject: |
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| Quote: | | this is what I would want to avoid: your son gets a low limit policy, hits someone, and that someone comes after you for all the damages beyond the limit of his policy |
If people did just a little bit of research, they would discover that the difference between $15,000 pp Liability coverage and $250,000 pp is only about $50-$75 more PER YEAR, they might actually carry proper limits when they drive.
Progressive does no one any favors with their "Name your own price" BS. Sure . . . give me the same $250,000/$500,000/$100,000 BI/PD limits I have currently for $780/6 mos (on two cars, no losses, no citations) for $500.
Think I can name that price? No chance.
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MaxHerr
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| Posted: Sat Nov 20, 2010 5:08 am Post subject: |
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| Quote: | | If people did just a little bit of research, they would discover that the difference between $15,000 pp Liability coverage and $250,000 pp is only about $50-$75 more PER YEAR, they might actually carry proper limits when they drive. |
I agree 100%! My current car is so old and virtually worthless that I don't even have collision coverage. But I do have $250K worth of liability coverage! If I cause an accident, I can cover the cost of my car, but I can't cover that much damage. No matter how safe you are, driving is inherently dangerous. Why risk financial ruin?
I think in this case, I'd either insure the car myself to make certain of proper coverage, or I'd just let the son own it so as not to be liable myself. Some parents own the car, carry the insurance, and either pay for the insurance or make the child reimburse them for the insurance. Either way, to the original poster, don't leave your financial future in the hands of a child! |
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dave18
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| Posted: Sat Nov 20, 2010 9:31 am Post subject: |
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| Quote: | | Either way, to the original poster, don't leave your financial future in the hands of a child! |
Agreed! I guess it's time that we teach our teens to be a bit more responsive towards life. Once they are eligible for a summer job, they should also be able to pay for their own insurance. Our job is to explain the responsibilities as well as the consequences of being irresponsible to our teenagers. |
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steven
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| Posted: Sat Nov 20, 2010 4:03 pm Post subject: |
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| Quote: | | Our job is to explain the responsibilities as well as the consequences of being irresponsible to our teenagers. |
Unfortunately, sometimes the kids have the same "hearing" problem the cat does: the only thing they hear when we speak is, "BLAH, BLAH, BLAH, BLAHBITY-BLAH."
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MaxHerr
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