What To Know Before Giving A Car As A Gift
Giving a car as a gift can mean big changes for your auto insurance Atlanta GA policy.
During the holiday season, it is almost impossible to turn on the TV without seeing a car commercial with a brand new car with a giant red bow. While giving a loved one a car as a gift can help to show them how much you care, it isn?t as simple as it looks on TV. There are many auto insurance Atlanta GA considerations and other obstacles to think about when it comes to giving a car as a gift including:
Before your loved one officially owns the car, their name will have to be on the title of the vehicle. If you want to surprise them by putting the car in your driveway, you will have to purchase the car in your name and transfer the title later. If you decide to take your loved one to the dealership, it can help to cut down on the amount of paperwork you will have to do. Keep in mind that the vehicle will have to be registered with the state and the driver has to have enough car insurance coverage.
You may face some financial repercussions when giving a car as a gift. As the one who is giving the gift, you may have to pay a federal gift tax. You should also think about what a new car will mean for the recipient?s auto insurance premiums. Since new cars tend to cost much more to insure, you should make sure that your loved one has the financial means to cover the increased cost.
To ensure your loved one stays protected on the road with their new car this holiday season with the right auto insurance in Atlanta, GA, contact Velox Insurance. we can help with all of your Georgia car insurance needs to give you the peace of mind that you deserve.