If this were you, do you have enough coverage???

The state minimum for Arizona is 15,000/30,000/10,000. The property damage coverage is the $10,000 amount. Which would not cover the amount needed to fix the restaurant. The additional $30,000 would be up to the driver to compensate for the damages.This can include having the driver’s paycheck attached.

 The coverage that we suggest to our customers it to carry at least $100,000/$300,000/$100,000. Being legal is a very important reason to initially purchase the insurance for your auto and home. The next step is to make sure that your assets are covered. Take a look at your auto policy tonight, if you are only carrying the state minimum, give us a call. We will see what we can do to give you better liability coverage.

This morning on azcentral.com there was an article about a teen who took the parents car without consent. The boy was told by his parents that he was not allowed to take the car unless going to specific places. He decided that he could get around the disciplinary action, and went out with his friends.

There was an accident with serious injuries.

Who is liable the parents or the kid?

The parents were found liable for the teens actions. The argument before the court was that he was violating their direction. Unfortunately the court did not see that as enough evidence for the parents to not be liable for the accident.

The family purpose doctrine states that the owner of a car is  liable for damages incurred by a family member while using the car. Since the teen was given permission to use the car when it was needed, he was in fact allowed to use the car. Hence makes the parents liable for any accident that was caused to the teens driving. It would be the same if he hadn’t been in trouble with his parents.

If the accident causes more damage that the insurance company will pay out, the parent’s are personally responsible for the excess due. This reason is why we always suggest a higher limit and umbrella for parents of teen drivers.