Your under-age children are responsible for all costs. Keep your wallet open. A bulletproof asset protection system can help you avoid any unpleasant situations.
A local newspaper reported that a West Palm Beach, Florida car accident occurred when a 15-year old sister was driving the vehicle. She had a learner’s license and was operating the vehicle illegally.
Is your child a problem-child who wants to create a negative identity? You could be held responsible for the negligence of your minor daughter or son. Your minor children could hold you responsible for their reckless acts. While I am not an attorney or a lawyer, I can give legal advice to parents. I have seen these kinds of cases firsthand as a Florida accident lawyer.
While my sons learned to drive, I was the one who carried my wallet around. These were minor infractions that I considered to be learning experiences and not willful neglect. It was much easier for me to pay the damages (usually less than $500) rather than reporting it to the insurance company.
Consider this: If your child is under 18 and becomes a rebel, reckless, or willful and drives illegally without your permission, you are “primely responsible” for their misconduct and damages. In some cases, they may even be held accountable for any additional harms they cause.
Signing the applications of minor children for drivers licenses, permits or other driver’s licenses will mean that you “assume all responsibility” for their negligence. Florida law, for instance, requires that any minor under 18 years old sign and verify the driver’s permit.
AUTO ACCIDENT OF A 15-YEAR-OLD IN WEST PALM Beach, FL. NOT COVERED BY AUTO INSURANCE UMBRELLA POLICY
You might say that insurance is why you have it, and that an umbrella policy is why you have one for this specific event. You would be wrong. You wouldn’t want to have to face this harsh reality after a car accident in which your child was injured.
Let’s take a look at the typical auto insurance policy. Are you familiar with what is included?
– Bodily Injury Liability It generally covers bodily injury or death of other people for which you are liable. It covers legal defense costs up until the amount stipulated in your insurance contract. It does not cover punitive damages. This coverage doesn’t cover you,… or any other person named on your insurance policy.
– Property damage liability. This applies to you if your vehicle damages another person’s car, fence or house. Your accident caused. It covers your legal defense up until the limits of your policy. It does not cover punitive damages.
– Comprehensive, other that collision. This coverage covers your vehicle for other incidents than collision. For example, if your car gets stolen, is damaged by fire or vandalism. Your policy will limit your coverage.
– Collision. This protects your car from damage caused by an object or vehicle hitting it. This pays the policy’s deductible less the damage.
Uninsured Motorist, uninsured bodily injury, uninsured vehicle damage, and uninsured motorist body injury are all examples. To make it easier to digest, I have grouped them all together.
– Umbrella Policy. Most insurance professionals will recommend you purchase a Personal Liability Umbrella Policy. This “Supplemental Insurance” is an additional coverage to your existing auto and home insurance. This policy is often called “wealth preservation for the rich”. This misconception is not true.
The nature of the claim will determine whether damages can be applied to either the home or car insurance. Next, the umbrella policy. The umbrella policy does not provide the only defense against legal liability. You should verify the coverage of an umbrella policy. Not all policies are created equal.
Most umbrella policies cover personal injury, injuries sustained by others on your property, as well as some property damage that is not covered under your auto or home policy. It does not cover punitive damages and it does not cover negligent or intentional damage.
COULD THE 15-YEAR OLD’S FLORIDIAN OLDER SIBLING BUY ADDITIONAL INSURANCE TO PROTECT HERSELF FROM AUTO LAWSUITS?
Is it possible for you to purchase enough insurance? NO.
All insurance policies will cover actual damages, up to the limit of the policy. They also provide legal defense. If the judgment exceeds what is covered, you will be on your own. You are responsible for paying any additional costs beyond what your insurance company agreed to cover. Example: Your underage driver drinks and drives and causes an accident. The damage is 1,000,000. Your auto insurance covers the first $400,000 (the amount covered in your policy). The umbrella policy covers the next $600,000. If you have a $1million umbrella plan, then you’re on your own for the $500,000.
Note: If your umbrella and auto policies are not in a position to hold you responsible for negligence that exceeds civil litigation, then you may be facing a criminal case. This could be a lot more than what you expected. (Please be aware that I am not a lawyer nor an insurance agent and state laws can vary from one state to the next. Consult with a motor vehicle, trucking, boating or motorcycle accident attorney in you area.
WHAT CAN THE OLDER SIBLING OF WEST PALM Beach DO TO PREVENT LAWSUITS RESULTING IN HIS/HER SISTER ILLEGAL AUTO ACCIDENTS?
Are you able to do anything right now to avoid the unpleasant consequences if you have drivers under your age? YES.
Repositioning (transferring assets) will remove your legal title to a residence, a car, and investment accounts. Your assets will be transferred to an independent trust managed by an independent trustee. Assets will be transferred to an independent trust with an independent trustee. You cannot be sued for assets you do not own or control.
SIBLING’S FLORIDA AUTO-INSURANCE COSTS MAY BE REDUCED.
A proper system is available in certain states. The insurance premium is significantly cheaper if the car is owned legally as a commercial motor vehicle. Also, it costs less to insure under-age drivers. In most cases, you can get a lower insurance premium by consulting your local agent. This is because a commercial policy typically covers the car and not the driver(s).
In this real-life scenario, the sibling in West Palm Beach could not only have reduced his/her car insurance costs but could also have protected himself/herself against any future lawsuits that may have arisen from his/her younger sister’s illegal accident.
Massachusetts, my hometown state, has a system where a ticket is issued against the driver and not the car. The penalty points are not used to increase your insurance premium because the car is already insured.