Auto Insurance Claims: Q, welfare agency, unlicensed driver

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
Hi Karam,

If the vehicle stays in your name then you also must be on the insurance. There is no way to legally sell him the car and then not transfer title and ownership. If you want to, you can leave the car in your name, you buy the insurance and list him on the policy as a driver. If the car is going to stay in your name this is the vest way to do it becaue then you are both protected. You should be sure he has a valid drivers license. If he does not then you could be in trouble for allowing an unlicensed driver to operate your car.

I hope this helps
Richard Hixenbaugh