Am I responsible if I add my adult child to my insurance and she has a serious accident? To what extent? Could I lose my home?
Question Details: My daughter is on probation for a DUI (her first) and her insurance lapsed due to nonpayment. She is also on disability for major depression as of a few months ago. I could save her over $200 per month by adding her to my insurance. She lives with me. I am fearful that she will have another accident under the influence and I might be sued in civil court if she was guilty. What is my own risk if I add her to my policy? I live in Texas.
Insurance Law Law Answers
I am a lawyer in CT and practice in this area of the law. The insurance company is required to pay up to your policy limit. If your daughter gets into an accident where you gave her permission to drive, the person that she hits is able to get the policy from the insurance company. If a jury awards the plaintiff more money than the policy limit, the the insurance company pays the policy and comes after you for the difference. I suggest putting the house in the name of a limited liability company. this way no one can touch the house and you can still take the tax benefits from homeownership. I sugest calling your lawyer to help you se this up.
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