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Household Finances

Automobile liability insurance

21 years ago

I do not drive, so this issue never arose for me. However, I recently married, so my spouse's situation now concerns me.

My spouse has always carried only the minimum state-required amount of liability insurance for his car. He stated that he never had many assets to protect, so he saw no reason for more.

If he caused an accident that resulted in a large award of damages against him, would I as his spouse, also be liable for this?

I realize that no one can give me legal advice, but I thought perhaps someone might have experienced something like this, and could share such information.

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Comments (5)

joann23456
21 years ago
You would not be liable, but any assets you hold jointly could be used to satisfy the judgment. So a house, car, boat, bank account, etc. that is held in both your names could be used.
gandbb
21 years ago
You don't live in a community property state so I think that simplifies things a bit. I would like to mouth off a little though on my opinion of people who think that protection of their assets is the only reason to carry insurance. How about the person who is injured? Should they sustain a huge loss because your spouse is unwilling to carry his share of insurance? I know some people who carry no insurance at all, for the reason that they have absolutely nothing. My brother was hit by just such a person and the losses were devastating to him. Now responsible people have to pay extra for underinsured motorist protection - I consider that both unfair and selfish.
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Silverdove
Original Author
21 years ago
Thanks for your replies.

(I did convince him to increase his insurance levels. What he had was what my parents had back in the 1950's and costs have increased greatly since then!)
joyfulguy
21 years ago
In some jurisdictions, if people live together for a certain specified period, the "partner's" assets might be in jeopardy.

In any case, the injured person might sue, hoping for a favourable judgement - and the person with assets would, of necessity, have to fight the issue.

Sixty years ago my Dad, a farmer, was buying insurance for his car and suggested to our hired man, a recent immigrant from a major European country famous for their financial affairs, that he should get some for his recently-purchased auto.

Fred said, "What do I care - they can't get blood out of a stone?"

That convinced Dad that there should be compulsory auto insurance.

So much so that, when he moved to a province where they'd recently instituted such a plan, innovative at that time, he began voting for the political party that had introduced it.

Dad used to say - "You broke it - you fix it!".

Seems to me that should apply to damage that we do with our property, as well - especially if we were the person who did it.

Actually, old Fred went on to own a dairy farm, never married - and I buried him, 30 years later. I still have a work coat at home that the trustee of his estate gave me at the time (nearly 40 years ago)!

I hope that you're enjoying life, this summer.

ole joyful
gina_in_fl
21 years ago
Ask your insurance company about an "umbrella" policy.. usually about a million, and covers all of the stuff (helps if you have house and car coverage on all the stuff) .. but it's CHEAP!!! My million dollar dog bite coverage costs me like $2 a year... hello??? CHEAP coverage!!!!

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