The OP's statement is still vague. Maybe the company was implying that they would carry coverage for him as an authorized driver under their own policy, and that your uncle would have to pay the portion of the premium to his company that was applicable to his use of the vehicle. This is similar to the arrangement I have with my employer. I have a company vehicle, they own it, they pay the gas, insurance and I am allowed to use it for my personal use as I see fit (my wife can use it to). Only difference is, I am not billed for anything. I believe some companies do take money from paychecks in this scenario for the "personal" part of the premium they pay for that driver. Makes more sense IMO.
the title is under the companies not my uncles. But my uncle is paying for the insurance since it is going to replace the car he was originally driving. The point of this "gift" was because the owner was tired of seeing my uncle drive an old car to work since my uncle is not into material things he rather save than spend on a new car. My theory is that I think the car is his but it is under the company for a tax benefit.
But is your uncle having to carry under his own personal policy or his company merely just making him pay them back for the portion of their premium that is applicable to his use of the car?
There should be a lease agreement in place between the company and the uncle setting forth the requirements and intentions of both parties-this really doesn't need to be a complex document. The uncle needs an insurable interest in the car and the lease agreement is the only way to facilitate him being able to get auto insurance on the vehicle if it is titled to the company. Generally, a monetary amount needs to be attached to the lease but it could be for $1/month or year. i'd also require a minimum amount of liability (like 100/300/100 or 300CSL) with a certificate of insurance due each year at renewal much like real estate agencies (ReMax/Century 21/Keller Williams & others) require of their agents. If i'm your uncles' company's legal council or insurance agent, this is my advice. If I am the agent for your uncle who needs to insure the vehicle then I would require the lease agreement. An insurance carrier has no obligation to pay a loss on a vehicle when the named insured on the insurance policy is not the title owner. It is however highly probable a personal auto policy [your uncle's in this case] would pay because it is the agents job up front to find out the title situation. Most companies/agents will not ask this question though. So in summary, just have your uncle add the car to his personal policy. The agent probably won't even ask if he 'owns' the car and then all is fine. If there were ever a situation where there was a problem with all this, have your uncle get an attorney because the above scenario covers each party's interest.
