Does a vehicle's registered owner need to have car insurance?

"I'm planning on giving my car to my sister. She will be insuring it under her name, but I'll still be the registered owner.

I'm not planning on being on the policy, is that allowed? Does a registered owner need to have insurance?"

Answer
“The registered owner of a vehicle is required to be the named insured (primary name) on a car insurance policy.
If you are giving your car to your sister, you’ll either need to keep insurance on it and add her as an additional driver.
The question then becomes: why are you giving her a car and keeping it in your name? It’s probably more hassle than it’s worth.
Most states allow you to gift a car to a family member. With minimal paperwork, you can transfer the title to your sister and she becomes the owner of the vehicle. This can get rid of the added responsibility of having car insurance on a car you don’t drive.
If you choose to gift the car to your sister, make sure she checks out the Jerry app. After downloading the app, she can compare over 40 insurers to find the best price and coverage for her needs.”
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Emily Maracle
Answered on Jul 30, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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