Household member liability

[Sharkctry]

My 23 year old daughter got a DUI. She has her own policy with State Farm. My wife and I also have our policies with State Farm. State farm has informed us that we all be dropped from our policies if she does not pay $2800 a year. Why are we being dropped for her mistake? They tell us that even if she stops driving we must show proof she is not living with us to continue our insurance. If she does continue to drive, how can we protect ourselves from liabilty from any accidents she may incur. State farm tells us there is always a possibility that we could be liable for her as long as she is considered a "household member".

 

[jharris352]

State Farm is a very restrictive Insurer. They want her on the policy for all cars in the house if she is living there. Some carriers will allow you to sign an exemption that states that you understand that she is not covered under your insurance, State Farm will not.

State Farm is simply trying to cover their liability. If you were to allow her to drive, even with an exemption in place, and she had an accident, you would be liable. If you are liable, the other attorney is going to sue you and your insurance because they have the deep pockets. If they are sued they have to defend the suit, even if they can show they are not liable. So, State Farm is protecting themselves by just not insuring YOU without the right premium because of their implied liability.

Sorry, that's State Farm for you.