Viewing Question: Is it possible for more than one person to own a vehicle?

Is it possible for more than one person to own a vehicle?

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Posted ByElizabethCFSI
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Comment1
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We want to buy a van on craigslist and go on tour to some festivals this summer. Can all five of us legally own, insure and drive the van? It seems like this would cost way more than one driver, but why?

1 Response

  1. So first of all – yes the 5 of you can all legally own insure and drive the van. The exact process will vary in each state, but generally the DMV and your insurance agent can walk you through the process.

    However, although you can do that, you might not want to.

    As far as ownership goes, if you put everyone’s name on the title, that offers some protection versus giving the money to one person and risking their absconding with the van. However, this doesn’t really fix the problem. Everyone will be an owner of the van and if one person wants to hang onto it, or sell it, it could be tricky to get the van back. You’d really have to get an attorney involved to address all the possible issues, and at that point the cost gets enormous. You might want to think about other ways to set up the ownership of the car. For instance, make a formal loan to one person and have them buy the car and then repay the loan when you sell it at the end of the summer.

    As far as insurance, you should talk to your insurance agent about the specifics. Generally, if you don’t live together and have good driving records, your insurance covers your friends if they drive your car. If you go on a road trip, you don’t generally need to add your friends to your insurance. If you have 5 names on the title, you may have to add all 5 names. If only one of you owns the car, you don’t live together, and you have good driving records, read your policy and think about whether or not you really need all 5 names. If you are all going to be driving the car 20% of the time, you probably do. If one person is the primary driver, then maybe the rest of you will be covered.

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