Insurance policies seem straightforward, but the details regarding ownership are critical. A very common mistake I see involves parents and children.

The rule is simple: The insurance policy must be in the name of the registered owner of the car.

The Mom & Daughter Mix-Up

I recently helped a client—a mom who has been with us since 2008. In 2022, she added a car to her policy for her daughter. However, the car was titled in the daughter’s name, not the mom’s.

When the daughter had a collision recently, it created a major issue. The policy was technically incorrect because the mom didn’t have the “insurable interest” in the car—the daughter did.

If you title a car to your child, they need to be the “Named Insured” on the policy, not just a listed driver. These small technicalities can cause big problems during a claim, so let’s make sure your policy matches your title.