Q: If one of my adult children caused an accident and someone was killed, could my assets be at risk?
Their names are on the title of their cars, and they still live at home, but I pay the auto insurance. If I could be sued, would a $1million policy be enough? The basic policy covers $500K, and I have a $1 million umbrella policy, so currently I am covered for $1.5 M. Do I need to be covered for more?
Unless you independently did something wrong (for example allowed someone incompetent to drive) your liability is limited. But higher insurance provides better protection and is often worth the small increase in cost.
Also make sure you have the highest amount of UM/UIM coverage, as that protects your family if they are injured.
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A: No. If you did not own the vehicle your child was driving, only your child's assets will be at risk. The insurance limits will certainly be in play to compensate the deceased individual's family, and I would expect all $1.5 m to be paid out. It is also worth noting this wreck may result in higher insurance premiums for you going forward, but your personal assets are not at risk since it was your adult child who caused the harm (and owned the vehicle).
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