So what do you plan to do?
Nothing goes without saying, especially for strangers on the internet. I can only judge what you typed and you spelled out the others but not that one.
By the way, you don’t need to defend your position like I was attacking it. I didn’t assume anything. I only pointed out some of the risk factors in case you, or someone who comes along later, hadn’t considered that possibility. You say it is more secure and more safe yet I pointed out one way it could go wrong.
I admit - I didn’t read every word - but it looks like you need some facts. NC requires vehicle OWNERS to have insurance, which does cover permissive users (like your sister). I doubt that she will be able to buy insurance on your car, though I can’t dismiss the possibility of an agent assuming it is her car, and/or doing it anyway. That said, you cannot make her policy pay for her and your policy pay for you - each policy has required State of NC language, which will essentially require all valid policies pay a pro-rata share. If she has an accident in your car, your insurance will still pay and it will count against you, though possibly less so if she has insurance that pays half.
That said, if there is an accident, then her insurance might refuse to pay, and try to rescind the policy due to lack of insurable interest (since it’s not her car) which could leave you in a heck of a mess, with your company only offering 1/2 because of the “other insurance” clause that says they only owe pro rata share.
There are a number of variations, none of which will do what you want to have happen, if the claims people are doing their job right. Plus you both would be paying for the same thing, in essence paying double with minimal benefit - if the accident is bad enough, you might run through the limit of both policies, but it would be a lot cheaper to just by higher limits on your owner’s policy.
If you are intent that you not be held responsible for her, as previously noted, title the car to her and have her re-title it to you when she gives it back. Let her insure it when she has it, but make sure you are listed as a lienholder, so you get paid for the car (not her) if there is coverage for it in an accident. If she is at fault, she will need to have collision coverage to pay for your car, but if the other party is at fault, they will see that you have a financial interest that should be honored. As others have noted, if she has an accident and you own it, you can be held responsible in some situations. As a lienholder, you don’t have that problem.
Good Luck - nothing in this comment is to be construed as legal advice, but as you might have guessed, I once was a claims adjuster in NC.
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Sure, you sound knowledgeable. I have to give your “Lien Holder” suggestion the thumbs up. You provided the ultimate solution to the problem. Congratulation. It is the way to go if a fail-safe insurance policy for her isn’t possible. I do not plan to be in the picture at all. Her policy must cover full liability, comprehensive and collision. In any case, I would not file a claim with my insurance, and having had insurance policies for over thirty years, I know insurance does not get involved unless I file a claim. No claim, no worries. That leaves us with the risk you mentioned earlier, the case in which if she is at fault in an accident and a claim is filed against her insurance and her policy reaches a maximum, then she will have to pay out of pocket. But what if she does not? Then, since I own the car, will their insurance come after me or my insurance? At that point, me and my insurance will be involved against our will. The answer was provided in the link I mentioned above (https://www.maggianolaw.com/can-car-owner-sued-another-drivers-accident) that I would not be responsible and in the conclusion that it was not up to our opinions…that if NC State Law does not allow her to have insurance while I own the car and if an insurance policy carrier does not agree to it and or proves to us that her policy can solely handle claims filed when and if she is at fault in case of an accident (even if she her policy reaches a maximum), then there is no point to the consideration of a double policy option, and your Lien holder solution would be the only viable option. Hey, brilliant!
Thanks! Good luck to you and your sister.
One more time-has your sister been successful getting the policy?