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The insurance should be in the name of the grandparents with the grandson listed as the primary driver of that vehicle. If all parties live in the same state this should be easy if they don't, well then that complicates things somewhat. For instance I own a vehicle that my Father-in-law keeps at his place and he is the primary driver. The vehicle is insured on my policy and he is listed on my policy as the primary driver. Doing this way keeps the state happy and the insurance company has full disclosure of all drivers. I would also have the grandparents write a letter giving the grandson full permission to use the vehicle. This should keep the police from thinking the kid stole the car especially if the last names are different.

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Q: If your son's grandparents are buying a car for him and the loan title and registration are in their names how can he take possession of the car and get insurance for it?
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