Our 30-year-old nephew lives with us. He is about to receive a used car as a gift. My wife and I each own a car, and all three of us are listed as insured drivers.

  • Is it best to include his car in our insurance, or should we shop around for his own policy?

  • Is it best to put his name on the title and/or registration, or one of ours instead?

EDIT: More details: We live in California. He's been on our insurance since he was a minor and learned to drive; I don't know if there's a financial advantage to adding the car and keeping him, or having him separate from our policy and get his own.

The gift-giver was about to fill out the transfer forms and asked me whose name should go on the title. The "obvious" answer could be wrong for all I know, so I'm asking if there are financial, legal, or practical aspects that I may not have thought of.

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    The obvious first question is "why won't he buy his own insurance?" – RonJohn Sep 20 '19 at 4:27
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    The second question is, "why are you thinking of taking his car? Because that's what your second question is asking. – RonJohn Sep 20 '19 at 4:29
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    @RonJohn 1) My insurance company provides multi-car and multi-driver discounts. I'm hoping you folks can tell me whether that's good enough reason. 2) The gift-giver asked me whether to put the title in my name or my nephew's. If there are pros and cons other than the obvious, I'd like to know. – Shawn V. Wilson Sep 20 '19 at 14:17
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    A crucial comment of mine was removed. We need to know why OP is asking about this before we can even think about providing competent answers. – RonJohn Sep 20 '19 at 21:25
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    He's 30 and not paying his own way. You're not telling us something important. – RonJohn Sep 21 '19 at 12:16

You’ll need to decide for yourselves which is best, but here are a couple of things to consider:

  • Do you want to tie a potential discount on your nephew’s policy to a potential hike in premiums if he makes a claim?

  • Do you want the responsibility for his car that goes along with its ownership?

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