Ask Your Absolute Insurance Agent: My daughter is buying a new car - Can I put it in my name, or should she title it in her name?

My daughter is buying a new car - Can I put it in my name, or should she title it in her name?

Before we can answer, we would need to know the answers to a couple of follow-up questions:

• Is there a loan on the vehicle?  If so, whose name is the loan in?  This sometimes dictates what name(s) the vehicle needs to be titled in

• Does your child still live at home?  If your child lives elsewhere, they should really title the vehicle in their name.  If your daughter still lives at home, some of our insurance companies allow vehicles to be titled in your son’s name and still be on your insurance policy - we would list them as an additional insured on your policy

One thing to keep in mind is that if the vehicle is involved in an accident, and you are a title-owner of the vehicle, you could be held liable for the damages even if you weren’t the driver.

You've Got Some Q's: We've Got the A's

Q:  Why does it matter whose name is on the title?

A:  This is an important questions and the answer is because the owner (titled individual) is ultimately liable for the vehicle.  For instance, if you are driving your friend's vehicle, and you get into a horrible accident that is your fault, the owner could still be sued after all insurance has been exhausted.  As the liability of the insurance follows the vehicle, so to does the liability of the titled owner of that vehicle.  Most insurance companies will want the insurance named in the same way the cars are titled.


Q:  Flood insurance will cover my belongings in my basement, right?

A:  No.  Flood insurance has limited coverage in basements period.  In fact, Flood Coverage will only recognize food freezers, heat pumps, sump pumps, water pumps, washers, and dryers as covered property in the basement.  These are NOT covered to replacement cost either.


Q:  I was waved through while trying to get out of a parking lot and was hit by another driver.  Is this my fault since I was waved through?

A:  Yes.  This actually happens quite a bit.  To begin, never rely on another driver to be your eyes and ears on the road.  Often times, the other driver is not looking at all parts of the road to make sure you are safe to pass through.  As the first article in this newsletter explained, be wary that you might be waved through and then hit by the driver that did the waving!  Fact is, only you know when it is best to go through and you can never rely on the judgment of another driver.  Be cautious of these situations, and better to be slow or late than in an accident.