Yes, in general it is true that as the parents of a minor you can normally be held liable for their actions. In many states for a teenager to obtain a driver's license a parental consent form must be signed by a parent or legal guardian stating that they are responsible for the minor and if they do negligent acts which cause damage, the parent can be held liable along with the minor.

In some areas even after your child is 18 or older you can still be held responsible for them if you still claim them as a dependent on your taxes we have been told. To find out exactly how much liability you have as a parent of a 17 year old that wants to own his own vehicle we would advise you to check with a New Jersey legal professional that is an expert regarding NJ liability laws.

In New Jersey there is not a minimum age requirement for obtaining auto insurance if you have your license or permit. However if you are under 18 and thus a minor you will normally need a parent or guardian to sign with you on any insurance paperwork since it is a legal binding document. So in NJ most insurance companies would still require a parent or guardian to sign on the insurance policy with your son since he is 17 and thus still a minor. An insurance company does not want to have a minor signing a contract, the insurance policy, without an adult.

According to the Department of Banking and Insurance (DOBI), which is the insurance regulatory body for NJ, if you are a teenager it will most likely cost less for you as a young driver to be added to your parents’ policy than to purchase your own. However, any driver with a car titled and registered in their name can purchase insurance.

It would likely be cheaper to add your son to your policy and if you would have to sign on his own separate policy with him anyway it would be the same liability on you either way normally. Getting an umbrella policy set up would be wise so that your assets are better protected.

With an umbrella policy you list what items you want covered (i.e. home, boat, cars, motorcycle, etc) and then those listed items are underwritten and a rate is given for the premium to cover up to $1 million in liability. If you would like this coverage through CarInsurance.com, purchase your auto policy and then we can add the coverage. Both Safeco Insurance and The Hartford offer umbrella policies.