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Differing Title and Insurance owners

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donmatt

Junior Member
I live in Texas and have a situation where I need to know if insurance will help and the extent of my liability.
My granddaughter (and others) are driving a car. I have her covered on my insurance (but none of the other drivers) as it was intended for her to use solely to go to school and work. Additionally, I have not received a clear title. It was supposedly in my son's name, but he never registered the change in title, so he is unable to transfer it properly to me.

What happens in the case of an accident? Will State Farm abide by its coverage if my granddaughter is the driver or will the clouded title cause issues? If there is a personal injury lawsuit, who is ultimately responsible - the driver, the insurer, or the title owner (as you can see, this could be 3 different people in 3 different families).What is the name of your state (only U.S. law)?
 


ecmst12

Senior Member
You can't have a car on your insurance that you don't own or neither the owner nor driver live in your household. You need to have "insurable interest" in order to have a vehicle on your policy. So no, what you are doing now is not proper.

Who is the owner on the title? Your granddaughter should really have her OWN policy, and she should name everyone who drives it regularly, especially if they are all in the same household.
 

donmatt

Junior Member
Messy situation

Granddaughter was living with us. Son attempted to sell the car to us, but he had not properly filed the title when he got it. So, we took out insurance thinking that we were getting a bonded title.

However, she has moved back in with her parents. The application for title fell through due to some paperwork errors.

So, I was just double checking and I thank you for your response. I didn't think that providing coverage was doing anyone any good at this point and your response confirms that.

Thanks
 
The prudent thing to do, is to find and have the last person that legally tittled the vehicle order a copy of the tittle from the state. Then have them sign the tittle over to whom ever is going to claim ownership.
 

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