How your car is titled will make a difference if you're in a car accident.

Jimmy: The wife was driving, got into an accident. It was her fault, and one of the people in the other car passed. Now my question is, can they sue them both or just the wife?

Attorney Tom Olsen: Jimmy, here's the answer to that question. First of all, I'm so sorry that this has happened. Jimmy, it depends on how the car itself is titled. Here in the state of Florida, if you hurt somebody in your car, they can sue both the driver and the owner. Jimmy, if that car was titled just in your wife's name, they can sue her as a driver. They can only sue her as the owner. If that car is titled in both your names, they can sue your wife as a driver and sue both of you as the owners. Jimmy, what's the car title read on that car?

Jimmy: I'm not exactly sure, sir.

Tom: Okay, well, that's where the answer lies, Jimmy, so you check it out.

Jimmy: Okay.

Tom: Jimmy, for that reason, some people that they want to be very conservative about avoiding liability, and so let's start with this, here in the state of Florida, for a married couple, if somebody sues just one spouse, they cannot touch anything that's owned by both the spouses, home, properties, bank accounts, you name it.

Jimmy: I see.

Tom: The ability to sue just one spouse in a married couple is a lot less valuable than being able to sue both of the spouses. Sometimes, spouses to be conservative, they'll take the car that the husband drives mostly and put it in his name only. Take the car that the wife drives mostly and put it in her name only. This very situation that we're speaking about, Jimmy.

Jimmy: Okay, sure, I understand. Thank you very much.

Tom: You're very welcome. Now, all that said, go ahead, Chrissy.

Attorney Chris Merrill: I was going to say, Tom, that was the very thing that I was talking to these clients this morning, and that is, one, they have three young sons, one's about to be 18, another one just started driving. We talked that very thing about making sure even too title, because of what you're saying, also, this same thing applies when you're saying husband and wife, also with kids.

Tom: Yes. Historically, I would tell people that it'd be great, if you buy a car for your child, it would be great to title that car in your child's name only but, man, good luck trying to get insurance for that child who's 18, 19 years old. Policy on that is going to be huge, but if you have that third car titled in the name of the married couple, it's easier or less expensive to get insurance on it. It would still make sense that if it is too expensive to put that title in the child's name only, too expensive for insurance, that'd be an especially situation where you want to have that child's car titled not both in mom and dad's name, just one of their names, so only one of them would be potentially liable.

Chrissy: Correct. I think that there's also a way with most insurance companies where they put it as that is the primary driver of the car, and because they may insure the entire family, but you can show that that car is associated with that person. Again, like you said, at a minimum, one adult only, one parent. Ideally, if you're able to have it entitled in just the child's name, that's better, if that's possible.

Tom: Let's say this too, before we leave this topic, okay? People that have accumulated wealth, got a nice home, you got a vacation home, you got money in the bank, you got IRAs, et cetera, et cetera, your best defense is to be well insured. You got good policy limits, and on top of all the insurance on your cars and your boats and your rental property, you've got an umbrella policy that hangs over the whole thing from $1 million, $2 million, $3 million. That's your best defense, folks, is to be well insured. Not only for the coverage, but remember in all these situations, if something really goes bad, the insurance company is going to supply you with an attorney to defend you.

Chrissy: Correct, yes. Right on. Thank you.

[00:04:31] [END OF AUDIO]