Auto Insurance Claims: California, personal liability coverage, deep pockets

Question
QUESTION: Hello Richard,

I would appreciate your advice on following:

It was stupid I know but I helped my ex Girl Friend to buy a car.

Per Toyota I am "co-buyer" or the car and this week I received a registration renewal notice addressed to "her" or "me".

I am in California.

I am aware that I am fully responsible for the loan which I am keeping an eye on that and can make payments if I need to.

When we bought the car it was added to her mothers insurance policy. She moved in with her mother after leaving me.

What worries me is whether I could be held liable for any damage or injury she may cause when driving the car?

If for example she let the insurance lapse or she drove drunk and caused injury im worried that I would be left with a lawsuit and mega bill.

If I was considered liable is there a limit to my liability. I am worried that I will loose everything.

I have renters insurance with a $300k "personal liability" coverage. Would this offer me any protection?

I would appreciate your advice.

Thank You.


ANSWER: Hi Patrick,

Your renters insurance will not provide any protection related to your car.

As the owner of the vehicle you are responsible for making sure that it is insured. The driver of the car is primarily responsible for the damage they cause. It is possible that if she were to cause significant damage or injury that a slick lawyer could try to come after you if you have deep pockets.

I would suggest that (if possible) you try to get yourself added to the mothers insurance policy as an additional insured. Make sure the liability limits are at least 100/300/50. If their is any increase in premium as a result of adding you to the policy, you should offer to pay the increase. If adding you to the mothers policy is not an option, perhaps you could convince her to get her own policy, put both of you on it and split the cost.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Hello Richard,

If adding me to mothers policy or us taking out a joint policy are not options is there anything else I can do to protect myself?

She thinks I am making a big deal of this, she assures me she will keep insurance up to date.

Do I need to loose sleep over this?

Thanks,
Pat.

ANSWER: Hi Patrick,

If they will not cooperate there is not much you can do. As I suggested before, you should at least be sure that they carry at least 100/300/50 liability limits. That will at least provide a reasonable layer of protection. Once you have that in place, then rest easy knowing that you have done all you can do.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Thanks Tichard,

1 more question:

Is there any way I could get a criminal record out of this situation i.e. if she lets insurance lapse could I get a criminal record out of it? even worse if she gets in an accident and she has let her insurance lapse could i get a criminal record from it.

Basically I am wondering what is the worst case for me?

Thanks,
Pat


Answer
Hi Patrick,

Technically it is possible. However, I do not think it would ever happn. She is also an owner of the vehicle and has posession and control of the vehicle. It is her responsibility to carry insurance. I really do not see you being held criminally responsible for her actions.

I hope this helps
Richard Hixenbaugh