How should we limit our liability in case 18 yr old child gets in an accident?

[jamarm]

Our 18 yr old daughter has been in a couple of accidents already. We are the legal owners of her car and she is on our insurance policy. We want to help her pay for her insurance and keep the cost as low as possible, but do not want to be liable for any additional accidents. What would you advise? Should we transfer the car to her name and keep her on our policy? Or would she need to have her own policy? If we help her pay for her own policy, would we be liable then? If getting her her own policy is too expensive and we decide to keep her on ours, how much coverage should we have? We live in California.

 

[army judge]

Our 18 yr old daughter has been in a couple of accidents already. We are the legal owners of her car and she is on our insurance policy. We want to help her pay for her insurance and keep the cost as low as possible, but do not want to be liable for any additional accidents. What would you advise? Should we transfer the car to her name and keep her on our policy? Or would she need to have her own policy? If we help her pay for her own policy, would we be liable then? If getting her her own policy is too expensive and we decide to keep her on ours, how much coverage should we have? We live in California.

Your daughter is an adult.
Your best bet is to gift her the car.
There could be some tax advantages to you for doing that.
There will be no state sales taxes this way.
Let her get her own insurance policy.
If she finds it too expensive, good, she may decide to stop driving carelessly.
Either way, you don't want any financial connections to her.

Her driving habits could cost you big time.
But, you need to have a serious discussion with her.
She is not behaving and driving properly.
She could kill someone, maim someone, and it might very well be her!

 

[davidklinton]

Very true!!!!
Army man telling some right facts and i'm totally agree with you.
But one thing i suggest you to claim file against the insurance policy agent , that might help you to gain a full money back to you and after that you should easily the name of the car owner either you or your daughter.

 

[bluemann33]

Put the car in ger name with her own insurance, that way if something bad were to happen then you wont be sued.