If you have a teenage driver in the family, you know they are eager to get on the road at any time and go just about anywhere. Whether they are driving your car or they are driving their 16th birthday gift to school and work, you care about their safety behind the wheel and their protection under the right auto insurance. However, it’s important to make sure that everything is in order legally for them to be out behind the wheel.
Transferring Ownership
While you can obviously buy a car for a teenager or they can buy it themselves, you might be wondering, can you transfer a car title to a 17-year-old? You actually can, and it’s a fairly easy process to go through. However, whomever a car is registered is under, they are responsible for their own auto insurance policy. Transferring a car title from parent to child requires that the vehicle is listed under their name, and then the title can be transferred.
A car title is a document that legally establishes who owns the vehicle. To transfer the title to your teenager’s name, you’ll need to go to your local Department of Motor Vehicles and proceed from there. This document will outline the terms and conditions of the purchase of that car, as well as the purchase pride, VIN, make, model, and year of the vehicle. This will also include the addresses of the buyer and seller. Some states also require the bill of sale, essentially a proven invoice on the sale of the car for vehicle registration.
Starting the Title Transfer Process
The first step of the title transfer process is listing the vehicle under their name. You typically won’t have to worry about insuring a teen driver while they have their learner’s permit. Once they’ve earned their full driver’s license, they’ll need insurance coverage. If the car is registered solely under their name, they will require their own insurance policy. Overall, transferring a vehicle to your teen is a fairly simple process that will involve a trip to the DMV to fill out the necessary paperwork for the title transfer to go through.
When visiting the DMV for a title transfer, you should be prepared to pay a transfer fee and other fees for the title document based on the city or state you live in. This completed form must clearly state that a teenage driver is taking on the title, along with additional documents showing proof of insurance and proof of ownership. You can even transfer titles to a driver in a different state, but be sure to work with your DMV to make sure regulations are being met. There may be an additional fee if the car is inherited by the teen driver.
Car Insurance Costs and Discounts
A teen driver may want to have the title and vehicle registration under their name, especially for that sense of independence. However, they will need their own insurance policy, and auto insurance for teenage drivers usually means higher premiums. Car insurance companies view new drivers as high-risk because of a lack of experience on the road. This is why some parents opt to put their teen’s vehicle under their existing coverage, as it makes it more affordable for young drivers to drive to school or work.
However, if the vehicle’s title is under the teenage driver, there are still ways to score discounts on auto insurance. Many insurance companies offer up discounts for good grades in the classroom to offset the higher premiums. There are also paperless discounts for electronic invoices sent to your email, rather than your mailbox. Over time, auto insurance savings can be acquired with a record of no claims and safe driving. At the end of the day, your teenage driver can get a vehicle’s title under their name, but they should keep in mind the costs associated with that.
