I  am a lawyer in CT and practice in this area of the law.  The owner of the car at the end of the day is the one that is ultimately on the hook if the insurance policy in place does not cover all the damages.  therefore, if you have multiple people driving the car, you are going to be responsible one way or another - i.e. your insurance policy will be triggered/your assets are at risk.  if your daughter has her own car and insurance, then your assets are not at risk at all.  this way, you can protect yourself if your daughter is not driving your car or on your policy.