Transferring a vehicle from a parent to a child in California follows the standard DMV title transfer process, which includes some steps that can be simplified due to the family relationship. First, the California Certificate of Title must be completed with signatures from both the parent (seller) and the child (new owner). If the original title is lost, an Application for Replacement or Transfer of Title (Form REG 227) must be used. To take advantage of the use tax exemption available for family transfers, a Statement of Facts (Form REG 256) should also be submitted to confirm the familial relationship. Additionally, if the vehicle is more than four years old, a smog certification may be required unless it qualifies for an exemption. The parent must also file a Notice of Transfer and Release of Liability (Form REG 138) to inform the DMV that they are no longer responsible for the vehicle. While the use tax may be waived, standard registration and title transfer fees still apply. The DMV recommends completing all necessary steps within 10 days of the transfer. 

https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/use tax/transactions-not-subject-to-use-tax 

https://www.dmv.ca.gov/portal/vehicle-registration/titles/title-transfers-and-changes

https://www.dmv.ca.gov/portal/dmv-virtual-office/title-transfers 

      Beginning January 1, 2025, California will implement updated minimum liability insurance requirements for all vehicles operated or parked on public roads. The new minimums are $30,000 for injury or death to one person, $60,000 for injury or death to multiple people, and $15,000 for property damage. These updated thresholds are intended to offer greater financial protection in the event of an accident. 

https://www.aisinsurance.com/resources/ca-new-auto-liability-limits-2025

https://westcoasttriallawyers.com/new-california-auto-insurance-law-2025

https://jassimlaw.com/what-californias-new-auto-liability-coverage-law

      If the child receiving the vehicle is under 18, they cannot legally own a vehicle or purchase auto insurance on their own. In such cases, a parent or guardian must co-sign the title and take financial responsibility for the insurance policy. This ensures that the vehicle is properly registered and insured while meeting California's legal requirements. 

https://www.progressive.com/answers/legal-age-to-own-car