The "Owner's Liability" Statute
Every parent worries about their teenager’s safety on the road. But few parents realize that their entire financial future is riding in the passenger seat. Under Michigan’s Owner’s Liability Statute (MCL 257.401), the owner of a motor vehicle is liable for any injury caused by the negligent operation of that vehicle, as long as it was being driven with the owner's permission.
This means if the car is titled in your name, and your 17-year-old runs a red light and paralyzes another driver, you are responsible. The victim can sue you personally. Your home, your savings, and your assets could be at risk if the damages exceed your insurance policy limits.
Negligent Entrustment: Did You Know They Were Dangerous?
Beyond strict owner liability, you can also be sued for Negligent Entrustment. This happens when you allow someone to drive your car when you knew or should have known they were unsafe.
Examples of this include:
- Giving keys to a teen you know has a history of reckless driving or speeding tickets.
- Allowing a teen to drive who you suspect has been drinking or using drugs.
- Letting an inexperienced driver take the car in a severe blizzard.
In these cases, the lawsuit isn't just about the teen's driving; it's about your bad judgment as the vehicle owner.
The "Joyriding" Exception
The only major defense to owner liability is if the vehicle was taken without permission. However, proving this with a family member is incredibly difficult. If your teen took the keys off the kitchen counter, the court generally assumes they had "implied permission" based on family usage. To prove they didn't, you often have to be willing to press criminal charges for auto theft against your own child, something most parents are unwilling to do.
How to Protect Your Family
If you have a teen driver in the house, you need to take two steps immediately:
- Increase Your Insurance: Do not carry state minimum coverage. Increase your liability limits as high as you can afford, and purchase an "Umbrella Policy" for an extra $1 million or $2 million in coverage. It is surprisingly cheap and acts as a shield for your personal assets.
- Set Strict Rules: Use apps to monitor speed and phone usage. If they break the rules, take the keys. If you know they are reckless and you let them drive anyway, you are handing the plaintiff a winning case.
If your family is involved in a serious accident involving a teen driver, whether your teen was at fault or was the victim, contact Shiraz Law Firm immediately. These cases are legally complex and emotionally charged, and you need an objective advocate.
