I have two cars:

  1. Car A that I have a bank loan on and am making payments on
  2. Car B that I have leased

I was the only applicant when I purchased Car A and also when I leased Car B, so as far as I know:

  • I can only register them in my own name, and
  • the insurance policies can only be made in my name

However, I have this situation that my wife's sister is a single parent mom and because she has not been able to buy herself a car, I have allowed her to use one of my cars.

Because she however lives in a different state, we made following changes (back in 2011) to the insurance policy that I have had for these two cars:

  1. We added her as a driver on the policy.
  2. We had the garaging location updated so as to indicate that the car was garaged in the state where she lives.

The insurance company accepted her out of state license and and had no issues about us indicating that that car was garaged out of state.

The question I wanted to ask is whether anyone has been in a similar situation and if there is another (better) way set up this situation?

(I am currently not able to outright buy Car A and give it to her even though this would allow her to register it in her own name and get insurance for it. I am just interested of seeing if there is other options.)

  • 1
    Are there any problems with your existing arrangement that you're trying to solve, or is this pure curiosity? – BrenBarn Nov 19 '15 at 18:55
  • 1
    Hi @BrenBarn, I had this arrangement with an insurance company from 2011 to until earlier this year (2015), until my sister-in-law was in a small car accident (the car was parked outside a shop and someone backed into it so that it buckled part of the back fender). After that happened the insurance company told us that they will cancel the insurance on that car "because it has been garaged out of state". So since they seem to want to evoke that as a reason for cancelling the insurance, I wanted to check if there could be some other way to get her to be able to drive the car with insurance. – x457812 Nov 20 '15 at 0:36

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