Insuring a gifted car before registering… is it an issue?

Insurance Forum Auto Insurance
1

I’m in Virginia, and my parents are gifting me their old car, which is currently registered and insured in Vermont. They’ll transfer the title to me as a gift.

The car’s current insurance ends next week, so I’m adding it to my Virginia policy now to avoid a gap. The catch is I won’t be able to register the car here until a few days after switching the insurance.

Will it be a problem that the car will technically still be in their name while it’s on my insurance until the title and registration are finalized?

2

It should be fine, but double-check with your insurance provider to make sure. They might ask for a bill of sale or other proof. You can use this link for Vermont’s bill of sale form: https://dmv.vermont.gov/sites/dmv/files/documents/VT-005-Bill_of_Sale_ODS.pdf.

Also, here’s info from the Virginia DMV for registering an out-of-state vehicle: Buying/Selling a Vehicle | Virginia Department of Motor Vehicles and a tax exemption form for gifted vehicles: https://www.dmv.virginia.gov/sites/default/files/forms/sut3.pdf.

3

You should be good to go. Just ask your agent if there’s anything specific you need.

4

I’m not sure about Virginia and Vermont, but in most states, you’ll need proof of insurance to register and get plates for the car.