I let my daughter use my 19 year old auto. I live in Asheville n.c.. she lives in banner elk, n.c.. who should pay the insurance?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Nov 2, 2019

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Insurance Question from Asheville, NC

Asked on 11/02/2019

I let my daughter use my 19 year old auto. I live in Asheville n.c.. she lives in banner elk, n.c.. who should pay the insurance? my insurance company says I need to keep policy with them. my daughter got insurance with her company. I hold the title.

Answer given on November 03, 2019

In most states, automobile insurance needs to be in the name of the registered owner. Since you are the registered owner, the insurance should be in your name.  You can add your daughter to the title, but it will still expose you to liability issues if she is involved in a major accident, or lends the car to someone else. Who pays the premium is really irrelevant, so your daughter could pay the premiums on the vehicle  The insurance company should not be concerned about who pays the premium.

You can gift the car to your daughter and rid yourself of any liability on the car. Since it is an older car, she would only need liability insurance coverage, and may not need the same liability limits that you may carry.. This may be the least expensive way to settle the issue, unless you want to keep the car for whatever reason.

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