Auto Insurance Claims: Q, welfare agency, insurance policy

Question
Hello
    
   I have a car that I want to sell. The title and insurance are under my ownership. A relative of mine recently arrived to the U.S from overseas, and he wants to buy my car, but he wants to keep the title ownership under my name because he is receiving some assistance, and does not want to report this car to the welfare agency. This car is 1992, and its value in blue book is only $1,700.

    If I sell it to him, can the title be in my name and insurance policy under his name? I know there are thousands of people who are doing the same thing, but I don't know if there will be any bad consequences in case we did this. I want to make sure that I don't have to get involved if he is in a car accident whether it is his fault or not. I wounder if I can keep the registration under my name too, but I am also wondering if he got stopped by police, he will have to show both driver license and registration and the name will not match on both.

     Thank you


Answer
You should keep the title in your name and not transfer it. Anyone can buy coverage on any property from an insurance company, regardless of ownership, so there shouldn't be a problem. Why not have your relative simply pay the premiums and leave things as they are, but add him as an authorized driver. As the registered owner, you will also be covered for use of the car. If he is stopped, he should tell the police that he has your permission to operate the car.