RANCHO CUCAMONGA, CA, October 11, 2011
/24-7PressRelease/ -- A lawsuit in Michigan that centers on a "joyriding exception" to state law could have financial implications for families who have excluded
car insurance for teenagers from the parents' policy, according to Online Auto Insurance (OAI).
The state's Supreme Court has agreed to hear a case -- No. 143330 -- involving a man who took his wife's car without her permission and crashed it while driving under the influence. The court is expected to decide whether an insurer is obligated to pay medical bills for the man, Ryan DeYoung, who drove the vehicle despite knowing he was listed as an excluded driver on his wife's auto policy.
Michigan law states that a person is not entitled to personal injury protection (PIP) benefits if he or she crashes a vehicle that was taken unlawfully, unless the person reasonably believed he or she was entitled to drive it.
But a previous Supreme Court ruling established the joyriding exception after concluding that the law did not apply to teens driving their parents' cars without permission, according to court documents.
An appellate panel earlier this year questioned the validity of the exception but left it up to the higher court to decide.
If the high court finds that insurance companies are not required to cover damages in such cases, that could mean parents of teen drivers who crash after taking off in the family car could be on the hook for medical fees and vehicle repairs that are the result of those accidents, according to OAI.
Statistics show that teen drivers are more likely than more experienced motorists to get into accidents, a fact that can make it difficult for families of teen motorists to find affordable coverage.
Federal safety officials say motorists from 16 to 19 are four times more likely than older drivers to get into crashes, with auto accidents accounting for one-third of teen deaths nationwide.
Source:
http://www.nhtsa.gov/Teen-Drivers
Teens have been said to be more dangerous than other drivers because they are often both immature and inexperienced behind the wheel. They are also more likely to text or talk on cell phones and engage in other forms of distracted driving.
To learn more about this and other safety and insurance issues, readers can go to
http://www.onlineautoinsurance.com/teenagers/ where they will find informative resource pages and a helpful rate-comparison generator.
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