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Young Drivers and Car Ownership: What You Need to Know

2017-02-08

 

"My daughter bought her own car and now it's titled in her name. How does that affect my coverage?"

Ownership is one of the most important factors in determining whether there is coverage for a vehicle under a personal auto policy. Only vehicles that are titled or co-titled personally in the policyholder's name or to a resident spouse are eligible for coverage.

In this hypothetical situation, your daughter's car no longer has coverage under your policy. The same goes for a vehicle titled to any relative, significant other or business. Since the vehicle isn't owned by the named policyholder, there is no insurable interest.

So, when your child purchases a car and has the title issued in their name only, it is time for them to also purchase their own auto policy issued in their name.

If you have any questions or concerns regarding the titling or coverage of your vehicle(s), please contact us at Rongstad Insurance Services.

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