Whose insurance policy should the car be on?

UPDATED: Sep 30, 2022

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Whose insurance policy should the car be on?

Hi, my parents just bought a car to give to my 18 year old son for graduation. They are the registered owners of the car, but the car for all other intents and purposes

Asked on June 20, 2017 under Insurance Law, Nevada


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

The insurance should be that of the registered owner of the car (grandparents), but the grandparents should have your son named as an authorized driver on their insurance policy.
The registered owner of the car is liable if the driver of the car is at fault in an accident even if the registered owner is not present at the scene of the accident..
If your son is not listed on the policy as an authorized driver and is at fault in an accident, the insurance company will deny the claim because your son was not an authorized driver.  The grandparents would be personally liable and have to pay out of pocket if their grandson is at fault in an accident. 

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