Accidents Involving Teen Drivers and Their Families’ Liability

Putting your teen driver on the road is scary, but when an accident occurs, that looming threat becomes very real. It’s normal for parents to feel overwhelmed and teen drivers to be scared and unsure of what happens next. Parents often wonder if they are legally responsible for the crash—and in some cases, they are.

Liability in teen driver accidents is dependent on a number of factors, and it’s important to discuss your options with a car accident attorney before moving forward. Call Verderame Law Group Arizona Injury Lawyers to schedule a consultation now.

Why are teen driver accidents treated differently?

Teen drivers are statistically more likely to be involved in accidents than older drivers. This is largely due to inexperience and a greater likelihood of risky driving behaviors. Because teens are still dependent on their parents and generally have limited assets, parents are often responsible for damages.

The key difference in these accidents is that liability doesn’t always stop with the driver. In some situations, responsibility extends to a parent or guardian. This concept, often referred to as extended or shared liability, means that parents may be financially responsible for their children’s mistakes.

When are parents legally responsible for a teen driver’s accident?

There are numerous situations where parents are held legally responsible for their teen drivers’ accidents. These include:

• Family purpose doctrine: Arizona is one of several states to follow the family purpose doctrine. The family purpose doctrine basically means that the owner of a vehicle may be liable for an accident caused by a family member if they provide a vehicle for family use and the driver is using it for a family purpose. In this context, the parent of a teen driver who causes a crash while using the family car to go to school, work, and social activities may be held financially responsible. The parent does not have to be present in the vehicle to be liable; they generally must have furnished or maintained the car for family use, and the teen must have been using it for a family purpose.

• Signing a teen driver’s license: In Arizona, a parent or guardian signs their minor child’s driver’s license application. When they do so, they may accept financial responsibility for damages caused by their child’s driving if their child is negligent or engages in willful misconduct, subject to Arizona’s financial responsibility exception. This responsibility generally continues until their child turns 18 unless the signer is released from liability under Arizona law.

• Negligent entrustment: If a parent allows a teen to drive when it’s obviously unsafe for them to do so, they may be responsible for a crash via negligent entrustment. Negligent entrustment includes allowing a child with a known history of reckless driving to drive, letting an unlicensed teen driver drive, and allowing a teen driver to drive after using alcohol or drugs.

Situations where parents may not be liable

Although there are many situations where parents are liable for their teens’ collisions, there are also situations where someone else (or the teen themselves) may be liable:

• The teen was driving a vehicle not owned or controlled by the family: In these situations, liability may fall to the owner of the vehicle if they allowed the teenager to drive it, though a license-application signer may still face liability under Arizona law.

• The parent did not sign the driver’s license application: If a parent did not sign the minor driver’s license application, the legal connection may not exist to make the parent responsible for the collision. Note, though, that they may still be liable under other theories.

• The driver is 18 or 19: Although the driver is still technically a teenager and likely still lives at home, at this point, they are legally an adult and may be held liable for their own mistakes.

How does insurance apply in teen driver accidents?

In most households, teen drivers are covered by their parents’ auto insurance policy. This is often the first line of protection after a collision, and if the insurance covers the damages in full, liability may ultimately not change much about how the claim is handled.

If the family has substantial liability coverage (which is often recommended when there’s a teen driver on the policy), it may be enough to cover the other parties’ injuries and property damage. Collision coverage on the policy may cover damage to the family’s vehicle.

Teens are known to be higher-risk drivers, so adding them to an insurance policy may result in significant premium hikes. But having proper coverage is crucial with a higher-risk driver in the house.

What happens if damages exceed insurance limits?

Serious accidents may result in damages that go beyond a policy’s limits. When this occurs, families may face financial exposure. This is where liability really matters.

If a teen causes an accident where damages exceed the limits of their family’s insurance policy, the injured party may file a lawsuit. If the family has non-exempt assets—such as home equity beyond applicable exemptions, multiple vehicles, or investments—those could be at risk in a lawsuit.

This is why some families choose to carry an umbrella insurance policy. This provides extra protection against large claims.

Guidance for families navigating a claim

If your teen driver is involved in a crash, it’s important to take steps to protect yourself—and them:

• Do not give a recorded statement to insurers; it’s better to discuss this with a car accident lawyer before giving a statement to anyone.

• Keep detailed records of accident-related expenses.

• If your teen driver is not at fault, know that an early settlement offer isn’t always a good offer.

Before accepting anything from an insurance company or making any permanent decisions about how to proceed, set up a time to talk to a car accident lawyer.

Protect your family’s best interests with our team

If your teen driver has been involved in a collision and you’re not sure who’s at fault or how to protect them, we’re here to help. It’s not uncommon for adult drivers to try to shift blame onto teen drivers by intimidating them or pushing them to apologize. Call us today or get in touch online now to discuss your options.