It might seem like a nice gesture giving the gift of a car, especially if the person is in need of a vehicle. However, it’s providing a person with more than just transportation. You’re giving them a financial responsibility and so much more. 

Insurance

When you give someone a gift of a vehicle, it requires insurance. The minimum coverage by law varies from state to state. You should contact an insurance agent in Bethlehem, PA for a quote prior to purchasing the present. You’ll need to take into consideration if the person is able to pay the premium once he or she has the car in his or her possession. Even if you supply a policy for a short period of time, you need to make sure the person will be able to pay for it afterwards. You don’t want to give the gift of a burden and have the giftee feel bad because he or she can’t afford to keep the automobile. 

Taxes

Depending on your state’s laws, the person you give the car to may be responsible for paying taxes on it. This could also be a problem if the person isn’t able to come up with the money. You don’t want to give them a gift that’s more of an issue than a present. 

Paperwork

Before you can give the person the vehicle, the title must be registered. That means you may have to put it in your name first and then transfer it. 

Prior to making any decisions, you should contact an agent at Saucon Insurance Agency at 610-868-1800. An agent will be able to discuss with you insurance requirements, so you can make the decision if a vehicle is the right gift to give this season.