I’ve had lots of anxious parents in Franklin TN and Brentwood TN ask if they can avoid liability for an accident if they simply have their live-at-home child get insurance in their own name, particularly if they own their own vehicle. Are the parents’ assets then protected?
As long as your son or daughter is financially supported by you, they’re tied to you, liability-wise, even with an auto policy in their name. That’s the consensus from all the insurance adjustors, underwriters and attorneys I’ve spoken with over the years. And that’s one of the first things a car accident lawyer will look at in putting together a lawsuit strategy against you. Of course, anything could happen in court, but the odds would definitely be stacked against you.
Even if you had the foresight to purchase an umbrella policy with extra liability coverage, your son or daughter won’t be included on it if they’re not listed on your policy.
You’re only truly safe once he or she is out of school, not a tax dependent on your return, is living on their own at a different address, and has the car in their name.
Sorry to break this news to you, fellow parents, but at least we’re all in the same boat!
David Yates Insurance Agency
1881 General George Patton Dr, Suite 103
Franklin, TN 37067
Phone 615-778-1816 Fax 615-778-1817