Car Gifting: Not as Easy as in the Commercial

In the commercial, a spouse or child walks outside on Christmas morning to find their dream car wrapped in a beautiful gift ribbon which makes the gift apparent. As much as anyone would love to receive such a gift, and as heart-warming of a story falls behind it, there’s actually a little more to the story. The car has to be registered and insured.

Giving a Car as a Gift

A car is a great gift for a spouse, children, or even a close friend. Unfortunately, there is more to a car than with typical gifts. Ownership is registered according to the licensed driver, taxes are due annually, inspections have to be conducted and perhaps most importantly, insurance has to be maintained in order to keep the car on the road. A car is an ongoing expense and the ability to maintain said expense by the recipient must be considered before purchase. Part of any good gift is the thought and consideration behind it.

Considerations

A car requires paperwork, and the paperwork has to be passed along to the recipient of the gift in order to keep the gift. There are further expenses after the initial purchase price of a car, namely, maintenance, continued registration and inspection fees, and insurance. It’s important for the giver to assure the recipient can maintain those expenses and keep the car.

Insurance

Insurance is an expense every car owner has to pay. Some policies are less expensive and others offer better coverage, so check with the gift recipient and ALLConnecticut Insurance about how best to cover the insurance needs of a gift before making a new car available to someone you love.