Benefit of Having Two Names on Car Title

A car title is proof that you are the legal owner of a car. It is a document that is usually issued by the Department of Motor Vehicles in any state or country.

When registering a car, the title can have a single or two names depending on the parties involved and their goal. However, whether you go with a single name or two names on the title, you should be aware of its benefits and downsides. So what are the benefits of having two names on a car title?

The benefits of having two names on a car title are:

  • It gives equal rights to the Car
  • It Ensures good estate planning
  • With two names on a car title, one can use the other’s insurance policy
  • It improves maintenance and makes it easier
  • Both parties can fund the car
  • It improves good resale value
  • It makes the transfer of ownership easy
  • It reduces cost and expenditure
  • You won’t have issues with the police when pulled over

Benefits of Having Two Names on Car Title

The benefits or advantages of having two names on a car title are:

1. You Can Use the Other Person’s Insurance

One reason why two people may decide to have two names on a title is so that one person can benefit from the insurance policy of the other person because they both drive the car around.

2. They Both Have Equal Rights to the Car

When two names are on the car title, it simply means they co-own the car and have equal rights to it. The benefit is that, even though they both own the car, they both have the same right to the car.

3. It Makes Transfer of Ownership Easy

Another benefit of having two names on a car title is that it makes the transfer of ownership hassle-free. There will be a need for a transfer of ownership if either the spouse or relative dies. If this happens, the ownership transfer process will be seamless.

4. Good Estate Planning

People always ask about the legality of driving a deceased person’s car. With two names of a car title, it will make it easy for the second owner to continue using the car when the other dies.

Meanwhile, planning on who gets the car after either one of them passes on is made easier by having two names on a car title. There will be a smooth transition of car ownership.

5. Both Parties Get to Fund the Car

Since two names are in the car title, if the car was purchased on loan, both parties will have to fund and pay off the loan. The funding/payment is not left on one person unlike when a car title bears a single name on it.

6. They Share the Cost of Maintaining the Car

Two names on the car title mean two people own the car, therefore, if anything were to go wrong with the car and it needs repairs or other payment requirements, both of them will share the cost depending on what their agreement says.

7. It Improves Maintainance

This is another benefit of having two names on a car title. Unlike when you’re the only one maintaining the car, if the car goes bad and you don’t have the funds to fix the problem, the other owner can decide to fix the car which will help to improve maintenance.

8. Good Resale Value

No one buys a car to use for the rest of his life. There will come a time when you would want to sell the car to probably purchase another one, when the time comes, having two names on a car title can boost the resale value because the buyer will believe that since they both owned the car, they must have collectively cared for it.

9. No Issue With the Police when Pulled Over

If for example, the car is co-owned by you and your husband, you will not have any issue with the police when they pull you over because you are driving a car that has your name on it. The same goes for your husband.

So, instead of driving a car in your husband’s name and having to answer the police all the time, it’s better to have both names on the title.

10. It Reduces Cost and Expenditure

Since having two names on a car title means equal ownership of the car, it can go a long way in reducing your expenditure.

  • First of all, since you’re two, it means you paid half payment while the other person completed his half to purchase the car
  • The maintenance of the car will not be on your head alone thereby reducing some costs for you
  • You will not spend so much fueling the car since the other owner can as well fuel the car

Problems of Having Two Names on a Car Title

Having two names on a car title is good with some benefits, however, it is important to know that some problems can arise when two names are on a car title. Some of such problems are:

It Can Cause More Issues When There is a Divorce:

If both parties whose names are on the car title are a couple i.e. husband and wife and they decide to go their separate ways, it will be quite difficult to decide who should go with the car.

Two names on the car mean both parties co-own the car and therefore have equal rights to it, therefore, in the case of a divorce, a lawyer or a court may have to intervene if neither of the couples is willing to let go of the car.

You Can’t Sell the Car without the Other Person’s Signature

Two names on the car invariably means all decisions as it concerns the car must be made by both parties and their signature must appear where necessary.

If the decision to sell the car is made, both parties have to append their signature for a successful transfer of property.

This, however, depends on the clause that was used in the title, if ‘or’ is used then either of the parties can sign but if it is ‘and’ both parties have to be present.

Difficulty Deciding Who Should Drive the Car and When

Another problem that may arise from having two names on a car title is the difficulty of deciding who should drive the car.

When two people have a right to a car, it can be quite difficult to decide on who to drive the car and when they should do so, especially if there is only one car available.

Two Names or Single Name on Car Title: Which is Better?

Having two names on a car title may be better than having a single name and vice versa depending on what the end goal is.

To have two names on a car title means two people co-own the car and have equal rights to it. On the other hand, to have a single name means the car is registered in a person’s name, and the person has the sole right to it.

It is important to know that whichever one a person or persons chooses to go for has its benefits and bad sides therefore it is up to the parties involved to weigh their options and proceed with the best one.

If you are trying to avoid having to share your car with someone or the stress of deciding who should get the car in the event there is a divorce amongst others then a single name on the title is better for you.

If you, however, want to share your insurance policy with someone amongst other reasons you should have a car title with two names.

When Should You Have Two Names on Car Title?

Having two names on a car title may be the best option for some people but some do not know when they should do so. Therefore, you should have two names on a car title when:

  1. When There is a Need to Share Insurance Policy: For instance, if a son is of age to drive a car the mother or father can decide to be co-owners with him so he can benefit from their insurance policy. With either the father or mother as a co-owner, the son will probably have some repairs done in the car without payment among other benefits.
  2. If You Want to Avoid Getting in Trouble with the Authorities: When more than one person will be driving a car, it is better to have the other person as co-owner when registering. Doing this will prevent either of them from getting in trouble with law enforcement agents.
  3. Married Couples: Married couples can decide to buy a car and have both names on the title. They can even go to the extent of buying cars in both names.

If one person’s name is on the title and another person is found driving the car, it may lead to problems with the person being accused of car theft, etc.


Deciding to have a single or two names on your car title is good, however, it is totally up to you to go with the one that will benefit you. As husband and wife, if you choose to have both your name and your wife’s name in the title, be well aware of the problems that may arise should one person die or in case of divorce.