I have a questiom about a car my daughter bought that the title was put in someone else's name for insurance reasons..

Experience teaches us life lessons and you are trying to explain to your daughter that what this other person has done potentially can blow up on her. In a perfect world, everything works out well and your daughter wins by paying less for the cost of her auto insurance coverage. And she then tells you that your fears were completely unfounded, and you need to trust more. In a less than perfect world (like the one you and I currently live in), people do bad or spiteful things every day and then your daughter calls you crying, saying that she cannot believe that this person has taken advantage of her. And, while you would like to tell your daughter “ I told you so”, you know that such a remark at that moment will not help. So, the best solution would be for this person to sign the title to the car over to your daughter now with your daughter holding the title in her possession, so that at any time, she can transfer title into her name and then also transfer the insurance coverage into her name alone as well ( in this setting though, it will most likely be viewed by MV as a sale and she will have to pay a tax for the sale of the car to her). Alternatively, you can draw up a simple document for both of them to sign, saying that while title to the car is in his name, he acknowledges that your daughter paid for the car, that she is the owner of it and when requested, he will promptly sign the paperwork authorizing the transfer of title into her name alone.  If you ask your daughter to draw up that paperwork, there is a 1.0000925% chance that she will do so and therefore it is better that you prepare it yourself for both to sign.