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It does raise a new question: if car is in kid's name, are we Still limited in liability he is on our insurance policy? Or would we have to get him an individual policy in his name alone?

Titled ownership of the vehicle is what is important. Some insurers will allow carrying a vehicle titled in his name on your household policy(ies). With others, he will need to get a policy in his own name.

With some insurers, you can assign drivers to vehicles operated, but with most the highest rated driver is assigned to and rated on the highest rated vehicle, and so on/

Some insurers will insure him to drive other vehicles in the household w/o an additional charge, if he has a vehicle insured in his name. Others won't.

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