I have two cars:
- Car A that I have a bank loan on and am making payments on
- 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:
- We added her as a driver on the policy.
- 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.)