Should I Transfer Car's Title to Kid in Graduate School?

[OldGeorge1950]

I just found this forum today and it's a goldmine of info.

However, I can't seem to find info about this question:

My son just finished college and will continue a master's degree at the same university's graduate school starting in September.

During 4 years in college, he's been driving my previous car and his name is listed as an insured driver on my auto policy. I only drive that car a few weeks a year when he comes home during the summer.

Is it a better idea to transfer ownership of the car to him? With the title in his name, I imagine that he will need to purchase his own auto insurance policy. His driving record is spotless and he is a very careful driver.

Or it is cheaper to keep the car title under my own name and his name on my auto policy for now... and do something after he finishes graduate school?

My insurance company agent told me that having him on my policy driving my car made very little difference on my annual premium. (less than 5%) That's what I was told two years ago.

 

[F150]

if he is on your policy, you still have liability if he injuries or kills someone, he is out of college, time to be an adult........

 

[xrac]

I think the cheapest option is to continue to cover him whether that is best from a liability stand point is another subject.

 

[BlockO]

Or it is cheaper to keep the car title under my own name and his name on my auto policy for now... and do something after he finishes graduate school?

It's almost always cheaper that way. The only time it would ever be cheaper for your son to go out on his own would be if he attends college in another state that has significantly cheaper rates than the state you're in. That's very rare.

But as mentioned, liability is still on you if you keep it as is.

One thing to remember is that with the way some auto insurance companies rate drivers, adding you as a 2nd driver onto his own policy will soften the premium increase, as opposed to him being the only driver on the policy.

It still won't be as cheap as keeping it as you have it now. But this way, with him owning the vehicle and being the named insured, the liability is off of you.

Again, not many companies rate this way, so it will take some shopping around to find a company where this little trick works.

 

[blue_wynd]

One thing to remember is that with the way some auto insurance companies rate drivers, adding you as a 2nd driver onto his own policy will soften the premium increase, as opposed to him being the only driver on the policy.
.

Which carrier will add another driver to the policy if they don't live with the named insured?

 

[BlockO]

plenty of carriers will do it. as long as the driver has somewhat regular or semi regular use of the vehicle.