Moore says many parents believe that if they go for low liability limits ($100,000 for injuries or $50,000 for property damage, for example) for their high school students, the household won’t be harmed if a teen driver is involved in an accident that seriously injures someone. It’s not uncommon for parents to be held responsible for damage and injuries caused by a high school student, even if the student has his or her own auto insurance policy.
“It has happened where the parent’s wages are part of a structured settlement or are garnished to pay for the accident damages,” Moore says. “Parents shouldn’t believe that they won’t be held responsible for the actions of their son or daughter, even if they have their own insurance policy.”
As far as responsibility goes, remind your teen that his or her grades could translate into cost savings. Discounts are available for young drivers, including price breaks for maintaining a B average in school. At Nationwide, the good-student discount is up to 15 percent; at Allstate, it’s up to 20 percent. Some companies also provide savings for students who pledge to drive safely or who participate in driver training courses.
Sam Puri of Insurancequotes.com sent me a link to the above article. Click the link to read the whole thing.