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When you transfer the title, you can talk to the DMV. i forgot the term, but you can title the car for non road use. You basically tell them that its going to sit in your driveway, and not be used on the road. You will not need insurance on it, and you must change the registration / insure it before its legal to drive it on the road. I know this is in California...cant imagine other states being too different.
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