AboutBennie 719 Expertise I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. Also thoroughly familar with claims handling procedures. Will not be able to quote rates because I took an early retirement. I still maintain a valid California Property/Casualty Agent/Broker license.
Experience Experience in the area: I have been answering questions at allexperts.com since 2002 in the catagory of "Property & Casualty Insurance". Licensed in California since 1961, first in Life/Health for 3 years and as a Property/Casualty Agent/Broker since 1964. Retired at age 58, but still complete my 30 hours of continuing education every two years in order to keep renewing my license.
Expert: Bennie 719 Date: 4/10/2008 Subject: Auto Insurance
Question QUESTION: Liability of a shared policy. I am thinking of getting a car insurance policy with my girlfriend. She and I own our own car and live with each other, the title of the property belongs to me. If she gets into an accident (her fault) and the claim exceeds to insurance coverage. By law could I be liable for anything?
ANSWER: Hi Harry,
Based on the wording of your question, I must assume that there is only one car and it is registered in your name.
First of all, you need to immediately call your insurance company and add your girlfriend to your policy as a driver. Otherwise, your insurance will deny any claim for an accident that she might have because she is a resident of your household and not listed on your policy as a driver.
This means the damages to your car and and any damage and/or injuries to the other car will all come out of your pocket. Your policy will not even pay her medical bills.
Once you add her to your policy as a driver, she only has protection while driving your car. There are no extension of coverage that allow her to drive someone else's car nor any protection for her as a pedestrian if struck by a car or if injured while riding in someone else's car. If she had a fault accident that exceeded your policy limits, you both would be liable for the excess amount, she as the driver and you as the owner.
The only way that you can purchase a 'shared' policy is to jointly register the car in both names and purchase a policy in both names
(or simply have your existing company change your policy to both names after you show them proof that the car is registered in both names).
This way, she will be a NAMED INSURED and entitled to all the benefits that the legal wording of the policy allows as far as driving other cars plus entering into, riding in any vehicle or being struck by another vehicle as a pedestrian.
Again, if she had a fault loss that exceed policy limits, you both would be liable for the excess. That's a fairly simple problem to resolve, just be sure that you are carrying adequate limits of bodily injury and property damage liability.
I trust this information is of help. Please write again if you feel that I can provide more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: Bennie,
Shoot, What I meant was that she owns her own car and I own mine and the policy will include both our cars. The case I was getting at was if she gets into an accident with her car and the charges exceed the coverage. Can my assets be at risk?
FYI
For the policy, AAA offers a flex policy where the owners of each car are separate "title", but are under one policy, and allows one another to drive each others car. Would the outcome of the above question be different if she was driving my car (not registered on title, but under one policy)?
From what I am hearing is that under such policy, my assets would be safe, if an incident were to occur, but she was driving her own car.
Thanks.
Harry
Answer Hi Harry,
This 'flex' policy must be something new that one of the AAA branches is offering.
I am quiet familiar with the Auto Club of Southern California, California State Automobile Association, AAA Nevada and AAA Utah.
If you live in the area covered by one of those clubs, let me know which one so I can get more information regarding the 'flex' policy.
The ability to put both cars on the same policy would result in a nice savings, but it doesn't resolve the liability issues.
If she has an accident in her own car, you are not responsible for any
excess unless she was acting as your "AGENT". That means if the issue came up and it was learned that she was on a specific errand for you, she would be acting as your agent and you would become liable on that basis. It's possible that a court could rule that she was acting as your agent while grocery shopping, since you also benefited from her doing that chore. The possibility of you being drawn into a lawsuit because she was acting as your agent can happen whether she is on a separate policy or a joint policy.
If she had an accident while driving your car, your assets would be at risk because you are also responsible as the owner.
