We bought a car for our senior college student in her name. She is our dependent and we live in Nj. Trying to get a NJ insurance policy with the car garaged in MIchigan since the car will be with her at school. But insurance companies are saying Michigan requires any out of state student to register and title the car in Michigan since the car will be there most of the time. We are also being told that Michigan requires oos students to register and title the car in Michigan if it will be there more than 30 days or coverage maybe denied. Anyone have any more info on Michigan insurance and out of state students.and find an insurance company that would issue in Nj but provide coverage in MI?
What is your current auto insurance carrier? Do they insure in Michigan? Start with them. They should be able to talk you through the details.
If she lives in Michigan and has the car there, why not just register the car in Michigan and buy a Michigan insurance policy?
I think she will need a Michigan drivers license as well.
Agree, just register the car there…it’s in her name. And get Michigan insurance.
We want to continue to keep her as a dependent on our income taxes and not sure if registering her car in Michigan would make her a resident there and not a resident of Nj and therefore not our dependent for taxes?
If you are not sure, better to find out for sure what the rules are before making decisions based on something that you are not sure of.
https://www.irs.gov/publications/p501#en_US_2019_publink1000220868 describes the IRS rules for claiming someone as a dependent. https://www.nj.gov/treasury/taxation/njit3.shtml describes the NJ rules. Consult a tax expert if you are still not sure.
Most states exempt FT students. Never heard of such a requirement.
Hmmm. Mich has weird insurance deal too. https://www.michiganautolaw.com/blog/2012/11/27/registering-your-out-of-state-motor-vehicle-in-michigan/
I’ve been told that this includes college students but it depends upon the insurance company and the underwriters who you can never talk to. Don’t want to insure in Nj if car won’t be covered in Michigan since it will be in Michigan more than Nj. Looking for someone from NJ who has car driven in NJ.
Call any major carrier like State farm and ask. This is an extremely common issue with oos kids. But registering your car I would doubt make them a resident… Most insurance companies have something about students temporarily living OOS. Just make sure they are insured in the correct state. Think Michigan has no fault insurance also.
Look at the IRS requirement for qualifying child.
" In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:
Relationship – the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
Residence – has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age – must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year. Support – did not provide more than one-half of his/her own support for the year.
Many people have cars registered in different states, like at a summer home. Doesn’t make them a resident of that state.
When my daughter bought her first car for her first job, she got a much better insurance rate and loan rate if I was co-owner of the car. Liberty Mutual issued her a Florida policy on the car and me a Colorado policy on my car. We got the discount rate for having 2 cars. It was really no big deal, and she had a FL license, registration and policy. they even billed us separately.
This brings up a good point. My daughter just got a car. State farm attached her to our policy since we have 2 cars, house and business on there. That dramatically dropped her rate. So ask.