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?
Hello, If the car is titled in your name you can still be held responsible if someone else causes damages
Even if it is insured that does not gurantee that it has enough coverage
I would recommend leaving in your sons name. Thanks Tom
Just to be clear, whoever is the tiltled owner of the car will be the one held responsible
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?
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
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.
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.
Thanks. Good to know!
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