I have an car insurance policy for me and 3 children. In an accident is child or me held responsible?

Question

One of the cars is in my child's name and the other two cars are in my name.

Answer 1

it depends on the accident, but you, as the policy holder, are responsible for what goes on in the policy.

if insurance doesn't cover it, then the children are legally responsible if they caused it - given they are of legal age.

Answer 2

My daughter just got her provisional license today and I'm reading this question pinching my seat that I'm setting fire to the couch... Oh c**p, I remember when she took her first steps, then road her bike on her own and now she can drive...

God bless us...

Answer 3

What I will relate to you may not be happy news but it is the fact of the matter. In the event of an at-fault accident, the vehicle "owner(s)" bear the ultimate financial liability even if someone else  was, with permission, driving the vehicle. Thus, if one of your children is at fault, you as the owner will be the one who is penalized. Your insurance carrier gets to pay the claim and you get to pay higher premiums for the next three to five years. Children under 18, in most if not all states, are legally considered as "minors" and are immune from being sued. If your 18+ year old offspring is at fault, he/she can be sued as the driver plus your suit as the owner.

The worst news for parents is what follows. In the event of a "serious" accident such as a fatality, multiple parties injured, etc., it can occur that your insurance policy's "limits" of coverage could be exhausted by huge medical bills. For example, if you "limits" for BI (Bodily Injury) are $300,000 total ("aggregated") and the medicals end up costing $700,000, then your carrier fulfills its responsibility when it has paid out the $300K policy limits. They walk away. You (and the vehicle co-owner, if any) are then personally still on the hook for the $400,000 left in medical bills. You have been welcomed to that group called the "underinsured." You (and any co-owners of the vehicle) are now in a very bad place as now all your personal assets, such as your home, boat, condo, savings account, etc. are fair game for injured third parties to seize to satisfy the outstanding $400K not paid via insurance. This seizure would have to result from a lawsuit leading to a judgment by the court against you & the co-owner. Accordingly, it is not hard to become "homeless" due to some teenager's moment of stupidity or carelessness.

Alternatives for you include placing them on their own insurance (they need to "own" the vehicle not you) and you can always speak with your agent about either increasing your policy limits or purchasing a "Personal Umbrella" policy which would kick in if your Personal Auto Policy limits became exhausted. Weigh all of this carefully, speak with your agent, and make a good "financial decision."

Answer 4

If I'm understanding this correctly you have an car insurance policy covering three vehicles in your household. Two are in your name as the vehicle owner and one in your child's name. Is your child 18 yrs or older?

Also, a good resource is...

http://www.surveyland.org/jump.php?link=...

Best of luck to you.

Answer 5

It depends on who caused it.