I have a question about what the case would be if i got into a car accident, mine or another drivers fault, with a friend in the car that is mine but in my Mother's name.
I have been reading a little bit into insurance, i think i understand how it would work and come into play a little bit. What would be my legal rights or the other driver's rights invovled and how this would affect the passenger in my car as well. If any one who knows about car accidents involved with someone who doesnt own the car and is driving a friend in that vehicle i would really appreciate any answers i get thank you.

Also i live in the state of New Jersey am 19 and have my basic drivers license if any of this information is necessary for answering my question.

excon

Hello Youngster:

If YOU are insured as a driver for your mothers car, your passenger would be covered through your insurance or the guy who hit you. The guy who was in the wrong will be the one to pay.

excon

wildcatgirl

This would be covered under your liability coverage. As a matter of fact, I believe every state has a minimum of bodily injury and property damage that you have to carry for liability (Kentucky is 25,000 per occurance with a 50,000 aggregate). Just make sure that since the car is in your mother's name, it is best to carry enough coverage to protect her personal property. In other words if her home is worth $250k, you should have enough liability coverage to cover that amount. Even though you may be the primary driver, if she owns the car, it can still come back against her if you're involved in an accident. Also, your insurance agent should be able to let you know what your states minimum liability coverage is. I suggest contacting them to make sure that you're well covered.

sideoutshu

I do some work in NJ from time to time. To expand on what Wildcat said, I believe the statutory minimum coverage in NJ is 15000/30000 (15000 per person, 30000 per accident). A few points:

1. The insurance company insures the car, not the driver. If you get in an accident driving your mother's car, as long as she knows (permissive use), her insurer will take care of you.

2. If you were in an accident with another car, and your passenger is injured, he would be able to sue both you, and the driver of the other car. Being a passenger in an auto accident puts you in a very good position because you don't have to argue about liability. Someone was always at fault (either of the drivers) and someone will always pay for your injuries. Now depending on how the accident happened, the passenger may not need to sue you, but to protect their interests, it should usually be done.

3. Your mother's car insurance company will pay for the medical bills of whoever was in your car.

4. Now what wildcat said above about carrying enough coverage is true in theory, the reality of our field is that 99% of the time, we never go after a defendant's personal assets. If you have an insurance policy of $50,000, and the injuries are worth $75,000, we will usually settle for the $50,000 and it stops there. I can count on one finger the amount of times we have sought personal assets of a defendant, and that was a malpractice case where a doctor killed someone on the operating table.

Let me know what county you are in, and shoot me a PM with additional questions.

valinors_sorrow

Lots of good information here that I just want to add a small precaution to: it needs to be clearly understood that although the mother owns the car and appears to have arranged for the insurance, if the insurance company has been misled about who is the primary driver of the car, it will not bode well in an accident. Because people have attempted to secure lower rates for young drivers in this manner, the insurance companies take steps to see to it that does not result in paying unnecessary claims. It would be wise to be sure you are listed correctly on your mom's policy before any accident took place. They do investigate to this level and insurance fraud is a crime. I think this is the point Excon was making that I wasn't sure came though loud and clear enough. Thanks.

ScottGem

Just report the incident to your insurance company. Your insurance company will take care of everything. If they determine the other party was at fault they will deal with getting reimbursement from their insurance company.

The only caveat here, is the issue Val and excon raised. If you are not listed as primary driver or even as an occassional driver of that car, there could be some issues.