My parents think that they can be sued if I get into a wreck just because I live with them. But I am 18, the car is in my name, and I would have my own insurance policy. I understand that anyone can get sued at anytime for anything, but could my parents actually be held liable?
Only the owner and the driver can be sued. Regardless of the insurance. If either of your parents is on the title to the car, then that parent can be sued also.
Only if their names were on the title to the vehicle as Michigan has an Owner Liability Statute. Your parents can't be successfully sued unless they were somehow negligent in causing an injury to someone. So unless they either owned or were driving your car when a crash occurred, any auto crash claim re: your negligence would not be against them.
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