Gifting a Car For Christmas? Here's How to Update Your Car Insurance

Some folks take the spirit of giving to massive heights during the holiday season, even to the point of gifting someone a brand-new car for Christmas. Gifts of that magnitude certainly help spread the holiday cheer, but a new car requires much more than just a giant red bow on top. 

Of course, we’re talking about protection. Whenever you add a new vehicle to a household, it likely needs its own car insurance (depending on your state laws). 

Fortunately, an independent insurance agent can help you get set up with the coverage you need to enjoy that new vehicle safely and legally. A local agent can also help you review any existing policies you may have and make the changes necessary to accommodate your shiny new toy.

Here’s what you need to know about insuring a brand new car, holiday style.

New Vehicles Always Need Car Insurance

When making a major addition to the household, like a new car, the first item of business is to call your independent insurance agent. Giving a car as a surprise gift requires even more forethought because an additional vehicle requires all-new insurance, whereas when an older car is swapped out for another, you can just transfer coverage from the existing policy.

Before leaving the dealership, you’ll need coverage for the new vehicle, whether that means adding onto an existing policy or purchasing a new one entirely. Your independent insurance agent will know the best course of action for you to take to get your additional vehicle covered in the most efficient, affordable way.

Gifting a Car to Someone in Your Household

In most cases, you can't just purchase a car for someone and drive it off the lot. If you want to give a car as a Christmas gift, you'll need to be concerned with more than just the exterior color and the trim package. You'll want to have all the I's dotted and T's crossed in terms of titling, financing, and insurance to make sure that the surprise goes off without a hitch. 

If you're going to be part owner of the car, it's not as complicated as if you're handing over the title to someone else. In cases of buying a car for a spouse or a child, you can sign all the paperwork and keep it a surprise until Christmas. However, some states require all parties to be present. Be sure to know all of the rules in your state.  

Car insurance should also be easy to obtain if you're buying a car for someone in your household. You simply need to add the car to the household, effective on the day you'll bring it home, and the gift recipient doesn't need to know. 

Gifting a Car to Someone Who's Not In Your Household

If you're giving the car to a friend or someone you don't live with, it's more complicated. It's difficult to title a car in someone else's name without that person present to sign the paperwork. The same is true for insurance. You must have an "insurable interest" in something in order to buy a policy for it. 

The best way forward is to title and insure the car in your name and then sign the title over to the recipient after the surprise has been revealed. 

Save on Car Insurance

Our independent agents shop around to find you the best coverage.

Request a Quote

How Can an Independent Insurance Agent Help? 

If you're giving a car as a Christmas gift, check with an independent insurance agent first so you know exactly what hoops you need to jump through and if it's even possible to get the coverage you need without alerting the recipient. 

You don't want to buy the car and then find out you can't get car insurance without involving the person you're giving the gift to. 

An independent insurance agent is an indispensable resource whenever you're buying a new car, adding a new driver, or need to purchase or change a car insurance policy. These agents work with multiple insurance companies, so they can help you compare quotes and find the coverage that meets your needs and budget.