Auto Insurance Claims: Q, motor vehicle department, welfare agency

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 know there is also registration, so I wounder if I can keep this one 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,
The best possible way to handle this situation is to take your relative to the motor vehicle department and transfer the title
into his name and at the same time add yourself as the legal owner of the car.
This way, he can secure an insurance policy in his own name and you bear no responsibility as the legal owner.
He can explain to the welfare agency that he is purchasing the car
from you with no down payment and minimal monthly payments and
therefore has minimal equity in the car.  Under these circumstances,
it can not be considered an asset.

If you keep the car in your name, he can not purchase insurance for
a car that he doesn't own.  You would need to add him to your policy as the driver of the '92 vehicle.  Since he has no driving experience in this country, the cost will be extremely expensive, you would
still be responsible for the actions of the car and if he had an accident where the damage or injuries exceeded your policy limits you will learn that you are liable to pay the excess amount out of pocket.
His future driving record will effect you and your policy.  If he has
multiple tickets or accidents, your entire policy will probably be cancelled even if you have a perfect driving record.

Be safe and take my advice as stated in the first paragraph.

I hope that you find this information to be of help.  Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area