Adding Girlfriend to Policy?

In Kentucky.

My live-in girlfriend is selling her car to help pay off some of her recent medical bills and we are going to share mine. I have contacted my insurance company to have her added as a "secondary driver" and she will drive the maybe once or twice a week at most. Neither one of us drive it much as she takes the bus to work every day and I work from home.

My question concerns ultimate liability. For example, if she is found at-fault in an accident that causes more damage than the policy limits cover, is she liable for the damages or would I be since it is my car or both? Could a court come after my personal assets? I've posed the question to my insurance company and they just said "this area gets tricky and they could come after both of us."

I've thought about about gifting the car to her and making her the primary driver with the policy in her name and adding me as a "secondary driver." I'm thinking that this way, I will be no more or less liable than I am now if I cause an accident, but if she causes an accident, I will not be liable for damages she causes.

I want to do this because she has virtually no assets but I do. Does this make sense to protect those assets or is there a better way to limit my risk without simply raising the liability limits of the policy (which I have considered also).

Thanks.

You would both be potentially liable. Best way to take care of this is to increase your policy limits to cover most situations either of you could get into. Doesn't matter who is listed as primary or secondary driver, you own the car and you live in the same household (presumably).

Thanks ecmst12.

What if I transfer ownership of the vehicle to her? It becomes her car and her insurance policy?

Would I still be potentially liable if she causes an accident?

Thanks.

I'm not sure that's the best idea either. Especially not if you want to retain ownership of the car if you break up.

The car isn't worth much and it would legitimately be a gift. It is worth far less than my other personal assets I want to protect. If we break up, it will be her car.

Thanks.

I still think you should just increase the limits. It costs less then you think it will, and it's worth it for peace of mind.

Another option is to look into an umbrella policy. You can easily get $1-$2 million in coverage, (which should be sufficient for the vast majority of people, no matter how poor a driver they may be).

Hmmm woman with no assets, if shes older than 30 red flags should be poppin up all over.