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Family
Driver Considerations
No other family
member can drive the child’s car
Do not let your
children drive your car. You are the "owner" and, as the owner,
equally liable for their actions.
Make sure that
every family member who may drive any car in the
family driveway is listed on the correct policies.
Make sure that
every family member who may drive any car in the
family driveway is listed on the correct policies.
Talk to your
agent about the costs of keeping all family members, including the
high-risk teenagers, on one family policy, giving everyone the
fullest protections. It may not be as expensive as you assume. The
only way for you to tell is to price out each option.
Make sure that
every family member who may drive any car in the
family driveway is listed on the correct policies.
Talk to your
agent about the costs of keeping all family members, including the
high-risk teenagers, on one family policy, giving everyone the
fullest protections. It may not be as expensive as you assume. The
only way for you to tell is to price out each option.
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Driving with Spouses. Be aware that if you cause an accident and your spouse is a
passenger, he or she may not be automatically covered under your
liability policy. It doesn’t happen often, but spouses who spend
a lot of time together (such as commuting on one car to work)
should make sure they are protected.
Based on recent
New York
State
legislation, all insurance companies underwriting in
New York
must offer coverage of claims by the injured spouse
against the driver spouse.
Some companies have turned this into a good-will gesture and
automatically include the coverage. Others offer it at a very low
rate ($15 to $30). The important thing is to make sure that you
have it on the declaration page. If it is not there, you are not
insured, and you should contact your broker.
If you have a lot
of assets that exceed the liability coverage you can afford, make
sure that the car is titled, registered, and
insured in the name of the
primary driving spouse. Remember that the driver and
the “owner” are equally liable for the driver’s negligence. For
example, if the husband usually drives a car that is registered in
the wife’s name, the odds are higher that claims will be made
against both spouses, which in turn makes joint assets
available to satisfy judgments. In short, if you usually drive,
make sure that your name is on the title, and that the car is
registered in your name. If you cause a catastrophic accident with
millions of dollars in claims, you will lose your assets after
insurance is exhausted, but your interest in the house and other
joint assets (or your spouse’s personal assets) will effectively
be unreachable.
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