If you're out of college, on your own and driving your parents' car, you have two main options:
1. Buy the car from your parents."The cleanest solution is to transfer the title to the young adult," Newman says. Whether you buy the car, or your parents give it to you, having your name on the title will enable you to purchase your own insurance policy. Newman recommends this route because:
- It's the least complicated.
- As the policyholder, you can begin building your own insurance track record.
- If your parents are no longer on the car title, they no longer have any liability. Then you're free to purchase the appropriate amount of coverage for your needs, Newman says. Chances are you have fewer financial assets to protect than your folks do.