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My son living in Texas may buy a car. I can add him to my

 
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  • Answered by:TaxTom
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Customer Question

My son living in Texas may buy a car. I can add him to my insurance, however, I want to make sure my liability is limited. If he loans the car to a friend without insurance, and that person gets in an accident, am I at risk? Does it matter if I have the car title or if my son has title?

 



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Submitted: 362 days and 20 hours ago.
Category: General
Value: $30
Status: CLOSED

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Expert:  TaxTom replied 362 days and 20 hours ago.


TaxTom :

Hello, If the car is titled in your name you can still be held responsible if someone else causes damages

TaxTom :

Even if it is insured that does not gurantee that it has enough coverage

TaxTom :

I would recommend leaving in your sons name. Thanks Tom

TaxTom :

Just to be clear, whoever is the tiltled owner of the car will be the one held responsible

Customer :

Thanks. Would the insurance company be responsible for payments to an injured party if my son allowed an uninsured friend to borrow the car and was in an accident?

TaxTom :

Yes if your son gave permission and the driver was licensed but it is impossible to tell the extent of damage they would only cover up the policy limits

Customer :

Ok. One more related question. If his friend is insured and someone is injured, would my son have any liability? I want to make sure I give him clear instructions regarding lending a car and the associated risks. Thank you.

TaxTom :

Yes, if they were insured for $250,000 and someone was seriously injured the cost could be over 1 million and he would be responsible for the difference.

Customer :

Thanks. Good to know!

Expert TypeInternet Researcher
Category: General
Pos. Feedback: 96.9 %
Accepts: 320
Answered: 4/12/2012

Experience: Years of experience of finding questions for employeers, family and friends.

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