Auto Insurance Claims: Auto insurance claim, auto insurance claim, wifes name

Question
My wifes mother added my wifes name to her car title in case she were to die, so the car would go to my wife. We have had nothing to do with the mothers car or insurance. Now the mother had an accident and is being sued. Are we also liable to be sued? Thank You

Answer
Hi Mike,
Since your wife is legally a co-owner of the car, she will also be named in any lawsuit.  Hopefully, your mother-in-law notified her insurance company of the changes in the registration and added your wife's name to the policy which would require the insurance company to also defend your wife in this lawsuit.  You need to work closely with your mother-in-law's insurance company until this case is settled to make sure that your interests are being protected.  Hopefully, she carries adequate limits of liability insurance to cover the amount of the lawsuit.
Putting your wife's name on the ownership was a very bad idea.  Have it removed ASAP.
I hope this has been of help.  I feel sure that more questions will arise as this claim progresses.  Please feel free to send me any follow up questions as necessary.
In your first follow up, let me know the amount of the lawsuit and the limits of coverage carried by your mother-in-law and your state of residence.
Sincerely,
Bennie
San Francisco Bay Area