My 22-year-old son who lives at our home in New Jersey is temporarily in Florida living in a half-way house in recovery from drug addiction. He has asked to have the car he drove at home (which is in my name and under my insurance) transported to him in Florida (Delray Beach area). I checked with the half-way house and many of the residents do have cars. However, I am concerned that if he gets into an accident and he was at fault, that I would be held financially responsible. If I sell/give my son the car and arrange to have the auto insurance in his name (I would still be helping him with the premiums), am I protected should he get into an accident in Florida? I was going to still have the car registered in New Jersey since I don't know how long he will be staying in Florida. I have heard from a couple of people (insurance agent and an investment person) that I can still be held responsible even though the car and insurance is in his name, because he still lives in my home and right now I financially support him. Is this true? If the car and insurance is in his name am I financially protected? Also, is it better to have the car registered in New Jersey or Florida?
I suggest that you meet with an attorney to protect your rights. Since he's an authorized driver under your insurance your insurance policy will be triggered. There are number of issues that may come into play here which is why I suggested that you meet with an attorney. You may or may not have adequate coverage, depending upon your policy limits. If your son was intoxicated at the time, the carrier may also tonight coverage. You should immediately report the accident to your insurance company and at the same time between the services of an attorney. If your coverage is adequate and the insurance company points an attorney to represent you then you could simply have your personal attorney much of the case. If your coverage is in adequate or they deny coverage then you will need to have your attorney represent you in order to prevent a significant financial loss. Obviously, my answer assumes that there are some physical injuries from the other driver. However, if there are not you may still want an attorney to represent you on a property damage claim.
Right now, you are the registered owner, so if you give the car to your son to use, whether in NJ or Florida or any other State, you can be held personally liable for any damage/injury he causes. Additionally, giving a car to an addict, who then gets into an accident leaves you open to a claim of "negligent entrustment". If title is transferred to him and registered in his name as owner, the first scenario won't apply, but a good lawyer could still hook you in on the "negligent entrustment" theory. Setting aside the foregoing, you obviously want to be a "good" parent and provide your son with what he wants - but are you really doing him a favor by giving him a car while he is still in rehab. Unfortunately, doing rehab does not guarantee that he will stay off drugs and if he goes out and injures someone, will your conscious be okay with that. Something to think about.
A parent is not responsible for the negligent acts of an adult child just because he is living in your home. In your scenario the only way to impute liability on you, the parent, is if he injures someone while driving a car owned by you. Florida follows the Dangerous Instrumentality Doctrine. Motor vehicles are considered dangerous instruments and as such, public policy is going to hold the owner of the car just as liable as the negligent driver, even if there is no negligent entrustment. I could let you, the safest driver on earth, borrow my car, and in Florida, if your negligent driving causes someone to be injured, I, as the owner, will be held liable. The theory of negligent entrustment assumes that you own the vehicle and entrust it to someone else. If you have no ownership interest in the vehicle, there can be no negligent entrustment.
