Insurance up to date but damage is over liability limit. Can the parents of the teen be liable and forced to pay damages?
Are the parents financially responsible if teen driver gets in an accident?
byu/Fun_End_440 inInsurance
Posted by Fun_End_440
6 Comments
Depends. If they are the owner and the case goes to a lawsuit, they likely could be named. The biggest thing is to make sure you have appropriate liability limits.
If they own the car, in most states, yes, they can be liable (although their liability may be capped if it’s based solely on being vicariously liable). They may also be liable separately in their own capacity (not vicariously) under the doctrine of negligent entrustment (again, if the parents own the car).
Who owns the car?
In Indiana yes parents have to sign a paper when kid gets their license that they will be financially responsible
I have seen parents make personal contributions to settle a claim over the limits. They are more likely to have assets worth pursuing. Consult a local attorney about this if you are in this situation
Generally the owner of the car is responsible.