Are my assets protected if my 18 year old daughter drives my car?

Full question:

My 18 year old daughter is in college driving my vehicle and is fully covered under my auto policy. Are my assets protected due to the fact that she has reached the age of 18 or do I have to make changes to protect my self ? I'm told that that I would not be responsible beyond my auto coverage due to her reaching 18, is this correct?

Answer:

In general, reaching the age of eighteen does not automatically protect your assets from liability if your daughter is involved in an accident while driving your vehicle. Legal concepts that may apply include:

Negligent entrustment: If you lend your car to someone you know is incompetent, reckless, or inexperienced, you may be liable for damages they cause. To prove this, it must be shown that: (1) you entrusted the vehicle to the driver; (2) the driver was unlicensed, incompetent, or reckless; (3) you knew or should have known this; (4) the driver was negligent while operating the vehicle; and (5) this negligence caused damages.

Family purpose doctrine: In some states, if you provide a car for family use, you may be liable for negligent driving by any family member using that car. Liability typically applies if the vehicle is used as a family car, the driver lives at home, and you consented to their use of the car. Note that this doctrine is not recognized in Louisiana.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

You should consider removing your child from your car insurance when they reach adulthood and no longer live at home, or if they have their own insurance policy. However, if they still drive your vehicle regularly, keeping them on your policy may be beneficial for coverage. Always consult your insurance provider for specific guidance based on your situation.