My response:
Good question, but let me answer your post with my own question. Same situation with your daughter; however, she lives in an apartment complex.
If she gets into an accident, would the Apartment owner be liable in any manner ?
The answer, of course, is no.
As with the apartment owner, your daughter is an adult and no longer a minor. The same concept applies to you. If the car is in her name, and all she's doing is making payments to you for it, then there's no liability that can attach to you. And, all she's doing is renting a room from you. But, for all intents and purposes under the law, she is the only one responsible for how she conducts her life.
Just make sure, for her sake, the sake of her child, and for the other drivers on the road, that daughter has as much insurance coverage as she can afford - - and that means enough to where it starts to hurt.
IAAL