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Car is a gift on mom's loan | Coverage for me?

by Heather

I received a car as a gift from my parents last year. The car is currently being financed with my mom's name on the loan.

The car is currently registered in Minnesota where I (and my mom) was living until about three weeks ago.

I have since moved to Texas. Since the vehicle loan is in her name, along with the title, I cannot register the car in Minnesota. Is it legal for me to carry a Texas insurance policy on the car as myself and my husband are the drivers even though the car is registered in Minnesota.

The insurance company does not ask where the car is registered, just where the car is garaged. I just wanted to make sure before putting the car on a Texas policy that I would not get in trouble if I ever needed to file a claim.

If I can do this, do I need to have my mom on the policy (since the car is in her name) as well as my husband and me (since we are the only drivers)?

Thank you so much for your help. This situation has been an absolute nightmare after we realized there's no way we can register and title the car in Texas since the lien is in my mom's name.


Hello Heather,

I am sorry for the delay... I had to looked it up and could not find a straight answer without reading the policy. There are two issues, 1. If you insurance the vehicle without being on the title or registration, then you do not have an insurable interest in the car. Read more about insurable interest here:


It is possible that insurance companies will no cover you in case of a car accident if this is the case.

If you add her to the policy, this could get around the insurable interest issues, but some policies will require you to be most of the time or be within certain mileage. It is very hard to say without looking at the policy.

Talk to several agents (you probably already have), someone will be able to help you.

Good Luck,

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