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Parental liability for 16 yr old driver

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robinsrudy

Junior Member
What is the name of your state? North Carolina

I listen to Dave Ramsey on the radio, and he says that parents should have their teenage drivers on their own individual auto insurance policy. He claims that if a teenage driver gets into an accident in which there is damage above and beyond the insurance coverage, the parents house and other assets are not able to be touched. If there is a million or multimillion dollar lawsuit against the teenager, the parents cannot be held liable. Is this true, or are parents of teenagers always responsible for their teenagers?

Thank you,

KarenWhat is the name of your state?
 


seniorjudge

Senior Member
robinsrudy said:
What is the name of your state? North Carolina

I listen to Dave Ramsey on the radio, and he says that parents should have their teenage drivers on their own individual auto insurance policy. He claims that if a teenage driver gets into an accident in which there is damage above and beyond the insurance coverage, the parents house and other assets are not able to be touched. If there is a million or multimillion dollar lawsuit against the teenager, the parents cannot be held liable. Is this true, or are parents of teenagers always responsible for their teenagers?

Thank you,

KarenWhat is the name of your state?

Do you think that will stop a personal injury lawyer from not suing the parents?
 

stephenk

Senior Member
Negligent entrustment is hard to prove and very fact specific. Just letting your child drive your vehicle does not give rise to vicarious liability or negligent entrustment.

If a teenager owns their own vehicle and is able to find a carrier willing to write them a policy, that is a good way to go. However, the premium rates would be sky high. Plus having the teenager with own policy will not prevent a suit against the parents if the kid is driving a car registered to the parents.

It is cheaper for the parents to put the kid on their policy and raise their liability limits to at least $1 million and purchase an umbrella liability policy for an additional $1 million (covers house and vehicles). Have the kid pay the portion of the raised premiums as their share.
 

seniorjudge

Senior Member
stephenk said:
...It is cheaper for the parents to put the kid on their policy and raise their liability limits to at least $1 million and purchase an umbrella liability policy for an additional $1 million (covers house and vehicles). Have the kid pay the portion of the raised premiums as their share....

No kidding.

Liability insurance is one of mankind's greatest inventions (next to compound interest).
 

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