Did I screw up? We have a family policy where my husband and I are the named insured. The drivers included are my husband, myself and our son and cover three vehicles all titled in my name. Yesterday I gift transferred the car title to one of the vehicles on the policy to my son (keeping the same tag, etc – just changing registered owners from myself to my son) thinking that there would be no impact to the insurance coverage since the vehicle & drivers remained the same until my spouse questioned that assumption. Who is right? I tried to take care of the transfer of title to get it done and out of the way since my son has graduated college and will be moving soon for his new job at which time I thought that he could then apply for his own individual insurance. Question is….. did I lose coverage on that vehicle now when I transferred the title to his name. Again the vehicle is covered (or was) under our existing policy of which all three of us are included drivers. Would be so grateful for your advice!!! Potential new customer when son gets his own policy. Thanks!
Looking down the road.
The younger driver not living with their parents, and having title to their own car may pay more for their insurance than a policy tied to mom and dad's policy. The risk of younger drivers is known. From the insurance companies standpoint, you raised the risk, because the only person on the policy is higher risk. But, your child is a grown up. Let them get their own wings.
Financially and legally, by severing the policies when they move, (assuming he or she will not live with you) you have likely lowered your risk of being sued, with one less high risk person on the policy.
So, congratulations, you have treated your adult child like a grownup.
Again, please talk to your Insurance Professional.
I would reach out to your insurance agent and review the situation with them, ASAP.
As a general rule of thumb, transferring ownership requires changing insurance policies. It can get a bit clouded and confusing when you live together.