by myerss04 » Wed Apr 21, 2010 06:34 am
Son is 24 and purchased a second car to loan to his girlfriend. I am covering 6 cars including his and the new one (have wife and 2 other sons). If the girlfriend does not own a car or have non-owners insurance, is she still covered? What are my risks and my son's? Should I tell my agent? I have $300M/$100M coverage with $1MM liability and $20M other.
Posted: Wed Apr 21, 2010 03:52 pm Post Subject:
First, let’s assume you are legally responsible for the damages caused by the vehicle (I’m not so sure you are, as your son is 24, but let’s just assume you are). If the only coverage available was from a non-owners policy taken out by the girlfriend, then only the girlfriend’s interests would be protected. In the event a lawyer needed to be retained to protect your interests, you would be responsible for those fees, as the non-owners policy isn’t there to protect you, it’s there to protect the girlfriend.
With regards to your son, his age would lead me to believe he is not a dependent of yours and it appears by your statement the vehicle is titled in your son’s name only, therefore, it does not appear to me you are legally responsible for damages caused by that vehicle. You would want to discuss this directly with your insurance agent though, as he/she would be more fluent with the laws in your particular state.
However, even if you are not responsible for the damages caused by the vehicle, your son is, as the vehicle is titled in his name. Your son will need coverage to protect his interests.
Posted: Wed Apr 21, 2010 03:55 pm Post Subject:
There is also the concern whether or not the son and/or girlfriend live in your household and if any other residents in your household might drive the vehicle. If you son isn’t in your household, if he isn’t your dependent, have you considered your son taking out a policy in his name alone and listing the girlfriend as a driver?
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