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Gifted a car - coverage for accident?
I am thinking of gifting a car to one of my friends and if I do I have decided to pay the payments of the car as the loan is under my name.
My friend wants to get the car insured under his name, is it legally possible that the car and loan be under my name and the insurance policy be under his name as he is going to be the principal driver of the car?
It is possible, but you do not to be very careful and talk to your agent about this. There is a clause or an insurance concept called "insurance interest," read more about it here: http://www.auto-insurance-claim-advice.com/Insurable-Interest.html to learn more about it.
There are policies that would allow you to do this, but you want to make sure the insurance will cover an accident and they would not deny a claim because of things like insurable interested.
It is possible that the insurance must be on your name and he makes payment to you. But the very best thing to do is to contact an agent and talk about this. They can tell you what kind of insurance you need.
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