My two kids live at home and drive my cars. Should I give the cars to them and have them handle their own insurance?
Two kids living at home, one drives a BMW325i, the other a BMW328i. Both cars are mine. What's the best way to handle insurance?
If you want to transfer the titles, you can do that through your state's DMV. The kids would list themselves on the policy only and remove themselves from your policy since the cars are no longer under your name. You'll probably have to make your children excluded drivers too — so the kids cannot use the parents' vehicles and vice versa.
If you have separate policies all within the same household, an insurer might have concerns with that. They can say the likelihood of sharing vehicles between uncovered drivers is too high and deny coverage. In this case, you'll have to shop around to find a company that will provide separate coverages. I'd first start with excluding the kids and dropping the vehicles, then having the kids shop for their own policies.
If you don't want to transfer titles, the kids can still insure it — following the same idea as above — but the parents would need to be listed as an additional interest on the kids' policies. This means the parents still own the vehicle (meaning, they have a financial stake in the car's wellbeing) and in the event of a claim payout, they would receive compensation prior to the kids.
If you have any questions, don't hesitate to ask. For more info on kids and car insurance, see the additional content below.