Gifting a Car to My Senior Parent: Insurance Advice Needed
I have a question that’s probably best suited for an insurance agent, but I’m hoping to gather some insights from the Reddit community.
I live in Florida and plan to gift my 2016 Kia Soul to my 82-year-old mom, who is still an excellent driver. My main question is: should I transfer the car into her name and find an insurance policy for her? Or would it be more practical to keep the car in my name and simply add her as a driver on my insurance? If I choose the latter, would that be considered inappropriate? The car isn’t worth a lot, so I’m not too concerned about collision coverage; I’m mainly interested in the most cost-effective option.
Thank you in advance for sharing your experiences and opinions!
It’s great that you’re gifting a car to your mom! Here are a few points to consider regarding the insurance and ownership options:
Putting the Car in Her Name: Transferring ownership of the car to your mom is often the simplest route. This way, she can have the title in her name, which can be beneficial for registration and insurance purposes. After the transfer, you would need to get a policy in her name. Generally, this can lead to lower premiums since she may qualify for discounts based on her driving history and age.
Keeping the Car in Your Name: If you decide to keep the car in your name and simply add her as a driver on your insurance policy, it’s not necessarily shady, but you should consider a few things. Insurance companies generally prefer the car to be insured in the name of the registered owner. If your mom gets into an accident, there could be complications with claims if the car isn’t in her name. Also, if you are the primary driver (and owner), your insurance might not reflect the risks associated with her being the main driver.
Cost Considerations: Insurance rates can vary widely based on the owner’s and primary driver’s profiles. Check with insurance agents to compare quotes for both scenarios. Sometimes, older drivers can get better rates due to discounts for safe driving history.
State Regulations: Since you’re in Florida, you should confirm any specific regulations regarding gifting a vehicle and insurance requirements. It could have tax implications or require certain forms for the transfer.
Talk to an Insurance Agent: Since you mentioned that you’re hesitant about the insurance side, it’s definitely worth getting a couple of quotes to see what options would be more cost-effective. Agents can provide clarity on the best route based on your and your mom’s profiles.
Ultimately, either option is valid, but transferring the title and finding insurance in your mom’s name tends to be more straightforward and compliant with most insurance practices. Good luck!