The short answer is if your car is involved in a motor vehicle collision your insurance may be on the line since you are allowing or giving her permission to drive your vehicle. The question should be is she a safe driver and uninsured because she does not have a car to insure, or is she uninsured due to a poor driving history.
If you let your daughter-in-law drive your vehicle, she will be considered to be a "permissive driver" and will be insured under your automobile liability insurance policy, unless she is somehow specifically excluded. If she had her own insurance in place, her insurance would generally be primary in the event of an accident and your insurance would provide additional coverage.
Your daughter-in-law should not be operating any vehicle without automobile liability insurance. If she operates her own vehicle with no insurance, she can be putting her financial future and possibly the financial future of your son in jeopardy.
Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to insure proper advice is received.
Actually, under Georgia law the insurance policy follows the vehicle not the driver. That means that, contrary to Mr. Lundeen’s assertion, you liability insurance would cover your daughter-in-law regardless if she had a policy of her own. A note of caution: if your daughter-in-law lives in your household or if she will be driving your vehicle regularly, you should notify your insurer of such. Most policy applications require you to list any licensed drivers in your household or who regularly operate the vehicle. Failure to so notify them could jeopardize your coverage.
Steven I. Goldman
GOLDMAN & ASSOCIATES
The Equitable Bldg. - Suite 2020
100 Peachtree Street, N.W.
Atlanta, GA 30303
(404) 577-9556 (fax)
NOTICE: This email and all attachments are CONFIDENTIAL and intended SOLELY for the recipients as identified in the "To", "Cc" and "Bcc" lines of this email. If you are not an intended recipient, your receipt of this email and its attachments is the result of an inadvertent disclosure or unauthorized transmittal. Sender reserves and asserts all rights to confidentiality, including all privileges which may apply. Pursuant to those rights and privileges, immediately DELETE and DESTROY all copies of the email and its attachments, in whatever form, and immediately NOTIFY the sender of your receipt of this email. DO NOT review, copy, or rely on in any way the contents of this email and its attachments. NO DUTIES ARE INTENDED OR CREATED BY THIS COMMUNICATION. If you have not executed a fee contract or an engagement letter, this firm does NOT represent you as your attorney. You are encouraged to retain counsel of your choice if you desire to do so. All rights of the sender for violations of the confidentiality and privileges applicable to this email and any attachments are expressly reserved.
If it is a rare once in a while thing, there is no problem. Do understand that she will be covered by your policy while operating the vehicle and any claims she causes can hurt your rates.
A few other issues exist though:
1) Does she live with you? If so as an of age driver, you need to ad her to your policy because if she lives with you, you don't tell the insurer and she crashes, then she is likely not going to be covered and your car won't be repaired.
2) If you lend it to her on a regular basis then there is a chance that the insurance company would deny coverage to you and her in the event of a crash because she is a regular user.
If she will be driving it more than once a month, talk to your agent.