Vehicles are a crucial and almost necessary part of modern life, and for this reason many people consider a vehicle as a very thoughtful gift that could impact someone’s entire life. However, there is more involved than simply the exchange of keys and a title when you give someone a vehicle as a gift. Here are a few things to consider before giving a vehicle as a gift.

Residual Costs

You should remember that there is more cost to the vehicle than just the vehicles price. There will be annual tags, taxes and insurance. You should consider whether or not the individual to whom you are giving the gift will be able to maintain these other yearly costs. Repairs and maintenance  can also vary from model to model. Some cars are much less expensive to maintain and repair than others. Factors these costs in when choosing a gift vehicle.

Taxes

Because the bulk of tax paperwork must be filed in the name of the recipient, not the purchaser, it is necessary for the purchaser and recipient to work together to get all of the correct information filed with the state and country in which the car will be registered. There are strict rules which vary from state to state concerning whom may hold the registration and under whose name the insurance must be filed. Be sure to do your homework so that you are in compliance with all applicable laws.

Insurance

Regardless of who buys the vehicle gift and who receives it, insurance is paramount to legal driving and operation of the vehicle. Be sure that insurance arrangements are made quickly, so that there is no lapse in coverage or temptation to operate the vehicle uninsured. Make the title, registration and insurance are all under the correct name to avoid any confusion in the event of an accident.  

If you have further insurance questions please contact Cross Creek Insurance now serving Hope Hill, NC.