Should I insure the car I’m purchasing for my twenty year old daughter to drive in my name or hers?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 16, 2010

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Insurance Question from Camano City, WA

Asked on 08/16/2010

Should I insure the car I’m purchasing for my twenty year old daughter to drive in my name or hers? My daughter has had two at-fault accidents in the last two years (April 2009, Jan. 2010). The last accident totaled the car. We are currently shopping for a replacement car that she will drive mostly for college/job. So far the insurance company has not raised our rates, but the renewal is coming up in September.

Answer given on August 17, 2010

You don’t indicate if your daughter lives with you or not.  In any case, the April 2009 accident should already be showing up on your policy since it has been over a year.  In September the January accident may show up, thus increasing your rates. 

If you put the car in your name you will receive discounts for having multiple cars in the household (multicar discount).  Other discounts may also apply.  However, it is your liability exposed by doing so.  If you put the car in your daughter’s name, it shields you from liability for her actions.

I suggest discussing the options with your agent.  He/she can give you the costs of insuring the new car either way.  You can also shop around if you are not satisfied with the costs your agent provides.

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