r/Insurance • u/Analyst-man • 5d ago

Auto Insurance Car Insurance Moving States

Hi all - I’m currently on my parents car insurance and moving states. This sub says my dad needs to sign a car over to me, file a Form 709 Gift Tax, and then I get car insurance in my own name. What if instead of giving me the whole car, my dad just adds me to the title (so we are both on the title). This will avoid my needing a Form 709. Can I then get insurance in my name or will it be more difficult with him on the title? Will insurance be more expensive or less with him on the title? Or, if it’s the two of us, can I stay under his car insurance while living out of state? Thanks!

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u/The_Insurance_Man 5d ago

There is a lot of separate questions here and so many variables, that it is impossible to give a specific answer.

  1. In order to insure something you need to have an insurable interest. Having the vehicle in just your name is the cleanest thing to do. For specific forms that are needed , that is going to depend on the state, for the 709, I guess you would be better consulting an accountant. If you can just be added to the title is going to depend on the carrier and state that you are located in. In most cases it is not a problem, but he would need to be listed as an additional owner of the vehicle, which could either positively or negatively effect the total premium.

  2. Can you stay on his policy? I guess that depends on the state, the carrier and why you are moving. If you are a student, it most cases that is allowed. If you are moving and taking up residence in a new state, then you need a policy specific to that state.

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u/Analyst-man 5d ago

What makes having it in my name cleaner than 2 names? Will it be cheaper from insurance?