<p>So, the high school graduate/new college student needs a car to get back and forth to work. Do we register it under his name or mine?</p>
<p>Considerations:</p>
<p>(1) Insurance is cheaper if I’m the listed owner.
(2) If I’m the listed owner and he has an accident, the other party can come after me.
(3) On the other hand, if he’s the listed owner, whoever it is can then go after him.</p>
<p>I’m sure there’s an answer, but I have no idea what it is.</p>
<p>Just in from my insurance agent:</p>
<p>If the car’s registered in my name, I am the ONLY one who can give permission for someone else to drive the car. So, even if my son is added to the policy as a second driver, the right to give permission stays with me. If the kid decides to take a trip somewhere and share driving with a friend, as soon as he hands the keys to his friend, we’re no longer covered . . . unless he contacted me ahead of time and got my permission for this particular friend to drive the car.</p>
<p>This was not something I’d even thought about. I just figured if he was added as a driver, he’d have all the same rights I do. Not so, apparently.</p>
<p>Our insurance company was clear. If the car was registered and owned by the student, he could not be covered on our policy. Even if we were co-owners, once the kiddo was listed as an owner, the policy would have been cancelled. </p>
<p>While our kid was in college (in our case it was for grad school), we kept the kid on our insurance and we maintained ownership of the car as parents. The insurance company was informed that this car was going OOS with a college student for the academic year. We did this because in actuality it WAS our car, and we were letting our kiddo use it while in grad school.</p>
<p>Once he graduated, we transferred ownership to him, and he got his own insurance.</p>
<p>We changed D’s registration right after she turned certain age, I forgot is it 18 or 21. If the car is in your name, then you are financillay responsible in case of accident primarily because you gave YOUR key to somebody else who was driving and got into accident. Since nothing can be collected from the young adult, the law suit is usually name parents as defendant. However, at certain very young age (16 for sure), it is not relevant as you are still responsible no matter if minor is driving his/her own car. At later age, it may play a huge difference.</p>
<p>We did exactly what thumper did. You might want to check back with the agent and see if your child is listed as the designated driver of the car (thats more expensive, I believe) can your child give permission for someone else to drive? That is, of course, if you want your kid to let someone else drive the car.</p>
<p>What Dodgersmom’s agent said is totally not true in most states. Insurance policies usually exclude coverage for someone who drives the car “without a reasonable belief they are entitled to do so.” This is not the same as permission. If the student allows the friend to drive the car the friend has a reasonable belief they are entitled to drive it unless the owner/parent has told the friend in the past that they cannot drive the car. </p>
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<p>If the car goes to college with him (a big “if” at this point), I would absolutely want him to be able to let a friend take the wheel if he’s too tired, intoxicated, or whatever to be able to drive safely himself. And, I’d guess, if it’s 3 am, that he would not have the presence of mind to call me and get “permission” first.</p>
<p>@Tyberius - I appreciate the heads up. I know that the insurance laws in NH are in some ways stricter than elsewhere, but it looks like I should investigate further before I just accept what my agent said.</p>