What Are the Benefits of Having Two Names on a Car Title?

Although briefly discussed before, there is more to a car title than what meets the eye. For starters, a car title is a legal document that a state government issues, and as such, it includes personal information alongside the vehicle’s information. Secondly, although sometimes confused, a car title is not the same as proof of insurance or vehicle registration because its only purpose is to prove legal ownership. 

In most instances, a car title is obtained through paying off an auto loan, purchasing a vehicle outright, or receiving an ownership transfer. With each option, a vehicle can have a single name or two names on its title. 

Joint ownership of a car title has its perks. Many advantages are associated with having two names on a car title. Below, you can learn more about these benefits and why having two names on a car title is worth it. 

1. There is shared maintenance responsibility and liability

Maintaining a vehicle is one of the biggest issues individuals face. This burden will be shared if you put two names on a car title. Instead of one person being responsible for all the upkeep and maintenance costs, both joint owners will need to look after the car – including routine servicing and repair costs should any arise. 

In addition, if two names are on a car title, there will always be a second person who can take care of a vehicle when the other cannot. With co-ownership, if you ever cannot take a vehicle in for a service or to be repaired, there will be a co-owner who can, saving you time and effort. 

2. Better insurance options

Car insurance can be pricey, especially if you’re buying a top-of-the-line vehicle or an older model that will require more maintenance. Luckily, one of the most significant benefits of having two names on a car title is receiving better insurance options. 

Insurance companies often offer multiple vehicle owners better rates, special offers, and discounts. So, if you have two names on a car title, you can take advantage of these deals better. You will likely also have greater flexibility to individualize your insurance coverage.  

3. Both parties are responsible for funding

Owning a new car is exciting, but you’ll likely always have the nagging thought that you must be ready to pay the installment at the end of the month. This pressure can be incredibly stressful. This is another reason individuals choose joint ownership. 

If two names are on a car title, both people will be responsible for the funding and paying monthly loan installments. With two names on the loan, the burden is halved, and both people are responsible for ensuring it is paid on time. 

4. Transfer of ownership is simplified

Death is a natural part of life, but it can complicate things when it comes to car ownership.

In the unfortunate event that one joint owner dies, the other doesn’t face a difficult transfer of ownership process since their name will already be on the car title. 

This is a huge relief and benefit. In addition, transferring or selling a jointly owned vehicle is easier with fewer legal implications and considerations.

5. Resale value is improved

Although it might be challenging to believe, having two names on a car title can improve its resale value. This is because, when the time comes for you to sell your vehicle, you’re likely to get a better price because having two people’s names on the vehicle title indicates that two people were responsible for its upkeep. 

People will automatically believe it had a better chance of receiving the services and repairs it should have had. 

As you can see, having two names on a car title has numerous benefits, but unfortunately, as with all things in life, there is another side to the coin. Despite the numerous benefits of joint ownership, there are a few cons you should be aware of before you decide to add two names to a car title. 

1. Ownership disputes

Unfortunately, one of the primary cons of having two names on a car title is the potential for ownership disputes. When two individuals co-own a vehicle, disagreements can arise over its use, maintenance, or eventual sale. These disputes can escalate, leading to legal battles and strained relationships, which most people want to avoid.

2. Liability and financial responsibility

Another downside of joint ownership is that both individuals listed on the title are responsible for any liabilities associated with the vehicle. If one owner is involved in an accident or incurs traffic violations, the other owner may also bear legal and financial consequences. 

And if one co-owner defaults on a car loan, it can negatively impact the other co-owner’s credit score and financial stability. That’s why ensuring you co-own a vehicle with the right person is incredibly important – someone you can trust and know will not cause you financial ruin. 

3. Difficulty in selling the car

Selling the vehicle can be challenging when two names are on a car title. Both owners must agree to the sale, which can be problematic if they have conflicting interests or cannot be reached. 

Additionally, if one of the co-owners passes away, their share of the vehicle may become subject to probate, causing delays and complications in transferring the title to the surviving owner or a new buyer.

Avoid these cons by subscribing to FINN

Car ownership can seem like a dual-edged sword with the cons surrounding having two names on a car title. But many of the cons mentioned can be avoided if you choose a car subscription instead. 

If you subscribe to a car with FINN, you can avoid these car ownership disadvantages while having two names on the subscription. FINN eliminates ownership disputes and liability and maintenance and insurance responsibility. With FINN you won’t have to worry about who has selling power over the car or maintenance because you’ll only be ‘renting’ the vehicle, with FINN covering all costs minus the gas. It’s a win-win.

If you’ve decided to add another name to a car title, you’re likely curious about how to do it. 

Below are the various steps you should follow for a streamlined car title amendment. Yet, remember that once you have successfully added a name to your car title, you will need to notify your insurer. Depending on the individual, you might see your rates increase or decrease.

1. Obtain your current title

Before you can add a name to a car title, you need to be in possession of the original title. Without it, you cannot prove that you own the vehicle and cannot hope to add someone else to it. 

If you can obtain the original title, you can take it to your local DMV and start the process of adding a joint owner to the vehicle’s title. If you cannot find your original car title, you should be able to obtain it from your state DMV after requesting a replacement title. 

2. Notify the vehicle’s lienholder

Those who are still paying off an auto loan will need to notify the vehicle lienholder of their wish to add a co-owner before they can proceed with the process of having two names on a car title. 

This is because it’s likely that the lienholder owns more of the car than you do, meaning you’ll need their permission to make alterations to the contract. Once you have made your wishes known, the lienholder will be responsible for providing a letter with the VIN (vehicle identification number) stating that you intend to add another person to your car’s title. If you own your vehicle outright, you won’t need to do this step. 

3. Sign the new title with the new co-owner

After contacting the lien holder or obtaining the original car title, you can transfer a share of the vehicle ownership if you no longer have an auto loan to pay off. This process is not overly complex, but it requires patience as much paperwork is involved. To sign a new title with the new co-owner, you will need to: 

• Sign your name on the back of the new title on the seller line. 
• Add your name and the second owner’s name to the buyer’s section of the new car title. 
• Should your new title state person one AND person two, you must both sign the transfer. 
• If the new title says person one OR person two, only you (the current owner) must sign the new title. 
• Depending on your state, you must finalize the car title by taking it to a local DMV with supporting documentation and payment for local title fees.

With regard to the documentation, it usually includes an odometer reading or odometer disclosure statement and a completed application for a vehicle Certificate of Title. 

How do you remove someone from a car title?

Sometimes, joint car ownership doesn’t work out, but it’s not the end of the world. You can remove someone from a car title, but the process will vary depending on the title type, and you will need to visit the DMV. 

Should the vehicle title have your name followed by ‘AND/OR’ the other owner’s name, you can remove them from the car title without their permission by way of the DMV. Yet, if the car title has your name only ‘and’ before the other owner’s name, you will need their permission to remove their name from it. They will need to sign the title over to you. 

Once they have done so, you can go to your local DMV and tell them the title changed to only your name. When you provide the necessary paperwork and signatures, the car will only belong to you, and you can expect to receive a new title and tags from the DMV you visited. 

What happens when a co-owner of a car dies?

So what exactly happens when a joint owner of a car dies? Can a co-owner of a vehicle take it? This is a difficult question to answer because every situation is unique. However, the general consensus is that when a co-owner of a car dies, the ownership typically transfers to their estate or heirs, often determined by their will or state laws. 

This means that in most states, the surviving co-owner retains their ownership interest, but to do this, there is a lengthy process involved. Although not difficult, it can be time-consuming. 

Generally, a co-owner can only get the vehicle after updating the car’s title with the Department of Motor Vehicles through a death certificate and legal documents. However, co-owners should note that there might be probate issues to settle outstanding debts in many instances, and insurance policies must be adjusted.