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Giving Car To Kid

24

Replies to: Giving Car To Kid

  • HImomHImom Registered User Posts: 32,640 Senior Member
    We gifted each an old car in their SR year of college and shipped by boat HI to CA. We retitled one it in each of their names. The insurance was higher but tickets and accidents only affect their premiums, not ours. Our insurer doesn't write any policies outside HI.
  • rosered55rosered55 Registered User Posts: 3,875 Senior Member
    Is the car going to California? I ask because the state has strict emissions standards, even for cars being brought in from out of state. Our family car would not have passed the test to be retitled and reregistered there.
  • roethlisburgerroethlisburger Registered User Posts: 2,266 Senior Member
    Read about negligent entrustment and vicarious liability.
  • intparentintparent Registered User Posts: 34,890 Senior Member
    The car is going to Iowa from Washington. I don't expect that it will ever come back.
  • cbreezecbreeze Registered User Posts: 4,684 Senior Member
    It's best to register the car in Iowa and get insurance there. You cannot sell a car in Iowa with an out of state license plate.
  • rosered55rosered55 Registered User Posts: 3,875 Senior Member
    Oops, I read the transfer states the wrong way. I apologize.
  • bookwormbookworm Registered User Posts: 8,451 Senior Member
    Read the Iowa laws. MA and Ca are strict, so I would never want to try anything on those states. I found the laws differed for UG students vs grad students, because the latter often have grants in their own names.
  • oldfortoldfort Registered User Posts: 22,162 Senior Member
    edited June 2017
    I am just going to say this...150K miles is a lot of miles. Does it make sense to have a kid drive a car that may need more maintenance and possibly break down from time to time? I would rather lease an inexpensive new car with warranty for few hundred $$ a month for my kid and keep the old car for myself. If your kid is handy and able to fix few minor things then it may be workable, but I know my girls are totally clueless when it comes to cars.
  • twoinanddonetwoinanddone Registered User Posts: 19,281 Senior Member
    ^^ My car that I drive every day has 161k miles and I have driven it cross country a few times since it hit 150k. Cars last a long time these day. My BIL just gave his son his Subaru with 250k+ miles on it and bought himself the exact same car (same model year, same color) with 'only' 150k miles. He drives from his mountain house to his city house, about 75 miles, every weekend, but even his commute to work in the mountains is about 20 miles ones way.

    New tires, new wipers, and I feel ready to go.
  • thumper1thumper1 Registered User Posts: 71,675 Senior Member
    150,000 for a well maintained Subaru isn't bad. The one our kid used had about that many miles. He drove it for two,years...and we sold it to a friend here who drove it for three more years...and sold it. My bet is is had 250,000 miles on it at the end of its use.

    I think you need to decide...are you letting your kid "borrow" the car...or are you giving it to the kid.

    If you are giving it to the kid...transfer the title, and insurance to the kid before he leaves your home state. Then it will already have the ownership step done.

    Kid will likely need to get an Iowa driver's license to register the car there. And insurance.

    In our case...we knew the use of OUR car was temporary...so we didn't do all of,that.
  • b1ggreencab1ggreenca Registered User Posts: 497 Member
    As an intermediary step you might want to change the car title to read Jane Doe OR Mary Doe. We did that with my daughter, who lives in a different state and was driving one of our cars. At some point after college when it became clear she was never going to leave where she was, she was able to register the car in that state and obviously insure it there and everything else, and I didn't have to go up there to sign anything, etc. It just buys you some time if you are still deciding what to do, so that if it does end up making sense for her to register and insure it there, she can do it without any further input or effort from you.
  • thumper1thumper1 Registered User Posts: 71,675 Senior Member
    @b1ggreenca

    Check with your insurance before you decide to make a title change adding your kid. Our insiriqcme was VERY clear...it was NOT allowed. If the kid became a part owner of the car...the KID had to get the insurance.

    YMMV on this...but we checked THREE different states...and three different insurance companies (we changed plans) and they all said the same thing.
  • rhandcorhandco Registered User Posts: 4,290 Senior Member
    I'd suggest continuing to own it and listing her as a household driver and that she is going to college out of state. However, the insurance company may not want to cover her in another state.

    The worst thing you can do is let her "borrow" the car - you cannot let someone just borrow your car for more than a week or two, because if anything happened to the car, your insurance company might cancel your coverage and not cover the accident. We had an issue with this in my family, and the insurance company was very clear - you have to list all drivers, and all drivers need to live with you.

    But you have to call your insurance company to confirm, better to find out something annoying now than terminal later.
  • thumper1thumper1 Registered User Posts: 71,675 Senior Member
    @rhandco

    We kept ownership of our car. Our kid used it out of state for two,years while in grad school. The kid WAS listed as a driver on our policy, and maintained residency in our state.

    We inquired FIRST about this with our insurance company. They knew the car was being used by a college graduate student...one of our kids...out of state. They were fine with that.

    As I said...YMMV depending on your insurance company.

    So...check that first.
This discussion has been closed.