[slodave]

Here's how it worked for me in Cali (car was given to me by my mom). Since it was a family transaction, we took our time in sending the pink slip in to have the car put in my name. For the three or so weeks I drove the car with it being owned by my parents, they had to keep insurance on it. My own car insurance would have covered damages first, but they would have also been liable and if my coverage ran out, they would be on the hook for the overages. Since the car was registered in their name, I could not insure the car under my policy until the paperwork was sent in. Once the release of liability was received by the DMV (done via Internet), I could insure the car, even without the new pink slip and my parents could drop their coverage on it.

Again, this is for California.