Insurance Question

[sonnyjane]

Take the car away?
No brainer to me.

That would be the other option. That said, we dealt with this with my brother. My mom tried to take the car away yet my brother still drove it one day. My mom called the cops to report it "stolen" and they told her they couldn't do anything because if there was EVER a time she told him he could use it, even if it wasn't current, then there's nothing they could do. That was in Florida.

 

[wdwmom0f3]

I would definitely talk to an attorney. If he does not live with you, I don't see why you would name him on your policy (all licensed drivers in your household are required to be reported). The fact that you are aware that there is an issue would seem to bring liability back to you in case of an accident. You may not be giving permission but your daughter is. So you would have to make a case that the car was stolen by him.

He wouldn't be on our policy, but a NAMED person on the policy saying that we will never give him permission, something like that. I guess like an excluded driver.

By misfit brother was 24 and still driving a car in my mom's name as an insured motorist on her policy. He got a DUI on one occasion and had a collision with a tree on another. We were worried about her being the owner of the vehicle if he were to kill someone in another accident, so she put the car in his name only and removed him from her policy. At the time I was angry at her for essentially giving him a car for being a delinquent, but considering he used to just steal it anyway when she would tell him not to drive it, I'm glad that her name is no longer associated with the situation.

This is what and why we will probably end up just putting it in her name and taking a chance with liability. I hate to do that!

 

[anniemck]

Is there an option (3)... take the car away from the kid since they aren't listening to you and make them get their own car and insurance?

exactly... my kid would for sure lose their driving privileges... of course mine were 18 before they even had their learners permit for the simple reason it is a privilege not a right and I could not afford that privilege.

 

[wdwmom0f3]

exactly... my kid would for sure lose their driving privileges... of course mine were 18 before they even had their learners permit for the simple reason it is a privilege not a right and I could not afford that privilege.

She has lost them. She does not have the car and has not for four months now. I'm trying to work on a solution here.

 

[Scrappy_Tink]

I don't have a solution, but just curious, do you know WHY she lets her friend drive? My son was really scared of driving, so when he went anywhere, his friend would drive (his friend drives his own car). I eventually put him in an awesome driving class, and it gave him so much more confidence.

 

[sonnyjane]

She has lost them. She does not have the car and has not for four months now. I'm trying to work on a solution here.

If you've been successful in keeping her from driving it so far then why give her the car? Is she trouble also or just the guy? I don't mean to intrude, I just am passionate about this stuff because my mom did my brother a great disservice by enabling him and providing him with things he did not deserve by trying to "help him". It only "helped him" use his money unwisely and not become productive.

 

[TifffanyD]

He wouldn't be on our policy, but a NAMED person on the policy saying that we will never give him permission, something like that. I guess like an excluded driver.



This is what and why we will probably end up just putting it in her name and taking a chance with liability. I hate to do that!

When you have an excluded driver you are saying this: "This person NEVER drives my car so do not rate on them. If they do drive my car, since I told you they don't, they are not entitled to ANY coverage under my policy". Whereas by leaving it as is your policy would apply to him (since it insures the vehicle and occasional drivers). So this basically affects if the insurance covers him but it does not affect your liability...

 

[DebbieB]

http://www.autoinsurancetips.com/what-excluded-driver-auto-insurance-policy

Again, I would contact an attorney, I would not take the word of this person in your agent's office. It may exclude him from the policy but not exclude your liability. If he kills someone with the car, they will come after you as the owner. The fact that you knew your daughter was giving him permission is not going to be good.

 

[StitchesGr8Fan]

Hi OP, I think you are doing the right thing talking to the attorney. But it really sounds like you need to put the car in her name and make her pay for her own liability.

But you should have a discussion with her and tell her this:
1. You are putting the car in her name, and she will be responsible for her own policy.
2. The only policy she can probably afford is liability, so if she (or he) crashes the car, its gone. No more car. (This might incent her to find a way to make more money, but I don't know the whole situation so she might be at her max earning potential.)
3. If the car gets crashed, you are not paying to fix or replace it. (This does stink since you paid for the car originally, but it is the sacrifice in the situation).
4. You are doing this because he can't be trusted not to drive the car, and if the car is in your name and on your policy, you and your husband could lose everything.
5. If SHE lets him drive the car and he crashes, she could lose everything too.

It sounds like you have had some ongoing issues with her and the car. I don't think this conversation is going to make her see the light, so you can keep things as is and she won't let him drive the car. But she is 20, and should be able to handle an adult conversation about the responsibilities of a car.

Make sure you highlight that she is on her own, and when the car is gone, its gone. I get that you are trying to help your daughter out and help her get a good start to adulthood. It's hard when the kid doesn't want to help themselves.

 

[Allaboutamouse]

Typically an excluded driver classification or title is used for a member of your household or family member that should normally be listed on your policy but for whatever reason you are excluding them from your policy. Usually it’s a high risk driver or someone with a record. It’s put in place to keep your rates and liability limits lower and to protect your insurance company should an accident occur if this person should drive an insured vehicle. I do not think this person would qualify for an excluded driver. Unsure what else your agent could be talking about. As stated before by PP all states have different laws, but the majority of states the insurance follows the car, not the driver. And if your daughter who is listed gives this person permission to drive your car then you are going to be held responsible/liable. Now if the boyfriend in turn allows someone to drive it without your daughter’s knowledge then you may not but that gets real sticky. If you’re not comfortable with your agent’s answer I would suggest contacting your state’s department of insurance. Your attorney, depending on what his “specialty” is may not have the answers either. I previously practiced as an insurance claims adjuster for several southern states and still hold license in two. Unfortunately Alabama is not one. Hope things work out!!

 

[Denise W]

Check with your insurance carrier to find out if your state and your carrier allow you to add an "excluded driver" on your policy. If so, add this person and you will be protected. If he takes the car and has an accident, your carrier will legally be able to deny coverage and all claims will have to be made against him directly.

Denise

 

[DebbieB]

Check with your insurance carrier to find out if your state and your carrier allow you to add an "excluded driver" on your policy. If so, add this person and you will be protected. If he takes the car and has an accident, your carrier will legally be able to deny coverage and all claims will have to be made against him directly.

Denise

The carrier will deny coverage but if the injured person goes to court, it will not exclude the OP's liability as owner of the car. You can't waive your own legal liability without prior agreeement with the injured party. Plus there would be no coverage for damages to the car.

 

[tvguy]

She s 20. The guy has his own insurance or so I am told. She also promised that he would never drive it but I don't trust that, at all. I need to cover myself and signing the car over to her is the only way I know how. She can't afford the high policy though because there was a break in coverage because I removed her when we took the car away. To keep the policy amount down she would have to be insured with us again for one year, then transfer it to her name.

She could afford liability only but that's taking a big risk.

He has insurance on HIS car. Your insurance is primary on your car. And most policies will extend coverage to your drivers on rental cars you rent.

 

[ilovemk76]

As you can see from the above post, we did that months ago. I am now to the point where I want to sign it over to her and be done with all of this and let her be on here own but she is young with very little money and big issues ahead. I am trying to help my child.

If anyone here can offer advice on insurance and not on parenting I would love to hear from you.

Thanks!

Where does your daughter live?

 

[ahutton]

This named uninsured driver sounds like an excluded driver. Your insurance would NOT be liable but I am pretty sure you could be...

My thought exactly! However, I have seen claims where the exclusion was found unenforceable. So much litigation and your policy still owed.

 

[horseshowmom]

May vary from state to state. However, you are insuring the car, not your child. If you are giving your child permission to drive the car, they may in turn give permission others.

While a talk with your child about not letting this person may be in order, you're going to be liable in most states if it is your car, and if your child is under 18.

I agree. If the vehicle is in your name, you can be held liable for any damages that aren't covered by insurance. If the damages are above your insurance limits, they can sue you for the difference (whether it be medical, property damage, etc.).

Honestly, I would probably sign it over to her and tell her that she was on her own (which is being pretty generous instead of selling the car altogether). As another poster said, if it's wrecked, she's out of luck. If she wants to be a grown up and make her own rules, she'll have to deal with it as a grown up.

 

[chloelovesdisney]

Sounds like someone will be riding the bus.

 

[wdwmom0f3]

If you've been successful in keeping her from driving it so far then why give her the car? Is she trouble also or just the guy? I don't mean to intrude, I just am passionate about this stuff because my mom did my brother a great disservice by enabling him and providing him with things he did not deserve by trying to "help him". It only "helped him" use his money unwisely and not become productive.

She is a good kid who makes bad choices, always has, always with this guy too. He is the one I don't trust, never will. When I

http://www.autoinsurancetips.com/what-excluded-driver-auto-insurance-policy

Again, I would contact an attorney, I would not take the word of this person in your agent's office. It may exclude him from the policy but not exclude your liability. If he kills someone with the car, they will come after you as the owner. The fact that you knew your daughter was giving him permission is not going to be good.

This is what we are thinking. As far as I know he has never driven the car, but I can't risk her ever letting him drive it. I have seen her let another guy drive it before so I wouldn't put it past her to let him. It's a risk that I'm not willing to take.

Hi OP, I think you are doing the right thing talking to the attorney. But it really sounds like you need to put the car in her name and make her pay for her own liability.

But you should have a discussion with her and tell her this:
1. You are putting the car in her name, and she will be responsible for her own policy.
2. The only policy she can probably afford is liability, so if she (or he) crashes the car, its gone. No more car. (This might incent her to find a way to make more money, but I don't know the whole situation so she might be at her max earning potential.)
3. If the car gets crashed, you are not paying to fix or replace it. (This does stink since you paid for the car originally, but it is the sacrifice in the situation).
4. You are doing this because he can't be trusted not to drive the car, and if the car is in your name and on your policy, you and your husband could lose everything.
5. If SHE lets him drive the car and he crashes, she could lose everything too.

It sounds like you have had some ongoing issues with her and the car. I don't think this conversation is going to make her see the light, so you can keep things as is and she won't let him drive the car. But she is 20, and should be able to handle an adult conversation about the responsibilities of a car.

Make sure you highlight that she is on her own, and when the car is gone, its gone. I get that you are trying to help your daughter out and help her get a good start to adulthood. It's hard when the kid doesn't want to help themselves.

I agree with all of this post! I think we have made our minds up to just sign it over to her and let her deal with everything on her own.

I agree. If the vehicle is in your name, you can be held liable for any damages that aren't covered by insurance. If the damages are above your insurance limits, they can sue you for the difference (whether it be medical, property damage, etc.).

Honestly, I would probably sign it over to her and tell her that she was on her own (which is being pretty generous instead of selling the car altogether). As another poster said, if it's wrecked, she's out of luck. If she wants to be a grown up and make her own rules, she'll have to deal with it as a grown up.

Exactly! I just talked to my husband and we are just going to sign it over to her and let it go. If something happens, it happens. There is nothing that I can do to help her here without putting us at risk and I hate it because I would love to help her but bad choices have consequences.

 

[ariel71]

The carrier will deny coverage but if the injured person goes to court, it will not exclude the OP's liability as owner of the car. You can't waive your own legal liability without prior agreeement with the injured party. Plus there would be no coverage for damages to the car.

This is what I was thinking. Legal liability and insurance coverage are two completely different matters. Legal liability is about defining the responsible party. Insurance coverage defines what they will and will not pay for. If he's driving the car and something should happen, you may be liable for damages regardless of insurance. It's just that if it falls under the policy, the insurance would pay based on the terms of coverage. I would research both as they apply to your state.

 

[Bluestars]

I think it's a good choice to sign the car over to her. That way you are no longer liable. A friend of mine sold a car once and the new owner did not title the car in his name. He had a DUI and killed someone. My friend was named in the million dollar lawsuit because the car was still titled in her name.

It really freaked her out, but she was able to prove she sold the car and her name was removed. Still, it really made an impression on me that the car owner will get sued if any driver of that car has an accident and kills someone.