Ask Regina

Q. Our insured co-signed a loan for his daughter to purchase a car and the lender titled the car in both the dad and daughter’s name. The daughter lives at home so she is a family member. Can we just add the car to dad’s policy?

A. In this particular scenario, yes. The Texas auto manual has a rule to specifically address this scenario as well as other different situations, for example adding a vehicle titled in a child’s name only to the parent’s policy.

Texas Auto Manual Rule 72 permits that the Personal Auto Policy “may be used to afford coverage to joint named insureds who are residents of the same household”, whether the automobile is jointly owned by the joint named insureds or not. If the joint named insureds do not jointly own the auto, the PAP “may still be used to afford coverage to joint named insureds who are related by blood, marriage or adoption, including a ward or foster child; and who are not residents of the same household” so long as both conditions below are met:

  1. the auto is owned by one or more of the joint named insureds who are residents of the household address shown in the policy, and
  2. the joint named insured who is a resident of a different household is the primary operator of the auto.

Note: The name of each named insured must be shown in the policy Declarations. The address of the first named insured shall be address shown in the policy and shall be the address used by the insurer for notice purposes.”

The ISO PAP also had an endorsement PP 23 27 Joint Ownership Coverage – Texas.  If the vehicle is in the child’s name only and not jointly owned, both the parents and the child would need to be named on the declarations.

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