Looking to gift a vehicle like an RV, boat, or powersport toy (think snowmobile, jet ski, or ATV)? It’s a generous move—and one that can create a lifetime of memories. But before you hand over the keys, it’s important to understand the paperwork, tax implications, and insurance requirements involved.
No matter which state you live in, there are a few essential steps to follow to transfer ownership smoothly and keep your recipient covered on the road, trail, or water.
Step 1: Clarify the Vehicle’s Status
Before you gift a vehicle, make sure:
- There are no outstanding liens or loans.
- The vehicle is in operable condition—or the recipient is aware of any repairs needed.
- You have access to the title and other required documents (like maintenance records, if helpful).
Whether it’s a like-new travel trailer or a well-loved boat, knowing the status of the vehicle helps with insurance, registration, and future upkeep.
Step 2: Draft a Gift Letter or Bill of Sale
Even if no money is exchanged, you’ll typically need to create a bill of sale or gift affidavit to document the transaction. This protects both parties and helps facilitate registration.
Be sure to include:
- VIN or HIN
- Year, make, and model
- Odometer reading (for RVs or powersport vehicles)
- Statement that the vehicle was given as a gift
- Signatures of both the giver and recipient
In many states, gifting a vehicle to a close family member (like a spouse, child, or sibling) may exempt the transaction from sales tax—provided you complete the necessary exemption forms.
Step 3: Transfer the Title and Registration
Head to your local DMV (for RVs and off-road vehicles) or Department of Natural Resources (for boats). There, the recipient will:
- Apply for a new title and registration
- Present proof of ID and a signed title
- Submit the bill of sale or gift affidavit
- Pay applicable transfer and registration fees
Some states require emissions tests or safety inspections, so check local guidelines to avoid delays.
Step 4: Secure the Right Insurance
Insurance requirements vary depending on the type of vehicle and how it will be used:
- RVs and trailers typically need liability insurance if operated on public roads.
- Boats may require liability coverage, especially if docked at a marina or used in public waters.
- ATVs, UTVs, and snowmobiles may need coverage based on usage and registration status.
Even if coverage isn’t required by law, it’s a good idea to protect your newly gifted vehicle with comprehensive or collision insurance. This safeguards against damage, theft, or accidents.
Step 5: Discuss Long-Term Ownership Costs
Before you gift a vehicle, it’s helpful to have an honest conversation about the long-term responsibilities that come with ownership:
- Insurance premiums
- Fuel, maintenance, and storage costs
- Licensing renewals and seasonal upkeep
Giving someone a recreational vehicle is exciting—but being clear about the full cost of ownership ensures the gift is a joy, not a burden.
Final Thoughts: What to Know Before You Gift a Vehicle
Choosing to gift a vehicle—whether it’s an RV for cross-country road trips, a boat for weekend lake days, or an ATV for backcountry adventures—is a powerful way to pass on freedom, fun, and unforgettable memories. But to make sure your gift goes smoothly, don’t skip the essentials like title transfers, proper documentation, and insurance coverage.
Need help insuring your gifted vehicle—or figuring out the best coverage options for RVs, boats, and powersport rides?
Reach out to Happy Camper Insurance today. We’ll help you find the right policy for any vehicle you plan to give (or receive), so your next adventure is protected from the start.
