Are Parents Liable for Children’s Car Accidents?

Smiling teenage driver at the car's steering wheel - visual concept for blog discussing parents liability for their children's car accidents.

Due to driver inexperience, risky behavior, and distractions like using a cell phone while driving, teen drivers are the age group most at risk of being involved in a serious motor vehicle accident. When a teenage driver is involved in a car accident, people often wonder whether the parents are liable for their children’s car accident.

Even though Michigan is a no-fault state, an injured person may face liability considerations if they are seeking compensation for additional damages. Liability for teenage car accidents can be complicated, and it is important to understand Michigan teen driving laws and who is responsible for the financial consequences of a minor driving.

Whether you were injured in an accident with a teen driver or the parent of a teenage driver who was involved in an accident, the attorneys at Muth Law, P.C. can help you navigate the complexities of Michigan teen driving laws and increase your understanding of parental liability for teenage driving accidents.

Michigan Owner Liability Laws

Under Michigan owner liability laws, parents of a teenager can be held liable when their minor child (under age 18) is responsible for causing an accident. Drivers aged 18 or 19 are legally considered adults and are responsible for their own actions.

Parents of a teen driver may not be liable for the actions of their minor child if the teenage driver used the vehicle without the permission of the vehicle’s owner. However, Michigan law presumes teenage drivers had their parents’ permission to operate the vehicle. To avoid liability, the vehicle owner must prove the teenage driver did not have the owner’s permission.

Negligent Entrustment

Negligent entrustment is a separate legal consideration that applies when a vehicle owner knowingly allows an unsafe driver to operate their vehicle. In negligent entrustment cases, the parents of a teen driver can be held liable for accidents caused by the teenager.

For negligent entrustment to apply in claims for damages caused by teen drivers, the parent must have explicitly given the teenage driver permission to use the vehicle. Classic examples of negligent entrustment are when parents know a teen has been consuming drugs or alcohol and still allow the teen to drive or when the teen has a poor driving record and the parent continues to allow the teen to use the vehicle.

There is an inherent contradiction in the last example, as most teenage drivers lack driving experience, and the only way to gain experience is by driving. Parents who allow their teenager to drive must consider the possibility of a negligent entrustment claim when they allow a teen to use their car. One option is to limit when and where the teen can drive until the teen gains additional driving experience.

Why Does Liability for a Teenage Driving Accident Matter?

Michigan is a no-fault insurance state, which means Personal Injury Protection (PIP) should cover the cost of medical bills, lost wages, replacement services, and other damages suffered because of a car accident. However, in cases where an injured person’s damages exceed their PIP coverage limits, the injured person may consider pursuing a third-party claim to seek compensation from a teenage driver who caused the accident.

Additionally, since following a change to the law in 2023, Michigan drivers have been allowed to opt out of no-fault PIP coverage. Without no-fault insurance coverage, an injured person may be unable to file a claim against their own insurance policy and may instead need to seek compensation from the teenage driver or their parent’s insurance policy.

Comparative Negligence

When an injured person seeks compensation beyond the PIP limits, comparative negligence may apply. Under Michigan law, the amount of compensation an injured person is entitled to receive is based on their percentage of fault. If a driver was found to be 20% liable for causing an accident, the amount of their compensation is reduced by 20%.

Tips to Help Teenagers Be Safer Drivers

If you are the parent of a teenage driver, here are some tips to help your child be one of the safer drivers on the road.

  • Be involved in teaching your teen to drive. Even though Michigan has adopted a Graduated Licensing Program and requires driver’s ed classes for drivers under age 18, having a parent who is actively involved in teaching their child to drive makes a significant difference in teaching safe driving practices.
  • Establish rules for listening to music and using electronics while driving. Ever since the first radio was installed in a car, teenagers have wanted to listen to music while they drive. But, you can teach your child lessons about safe practices by selecting a playlist that will enhance their concentration while driving and setting maximum volume restrictions when they drive. You should also educate your teen about the risks of distracted driving and teach them why they should not use a cell phone when they are behind the wheel.
  • Teach your teen to be responsible behind the wheel. Driving is about more than getting from point A to point B. It is a shared experience, and drivers must be considerate of others on the road. Teaching your teen driver to respect others on the road will help them avoid dangerous situations.
  • Accompany your teen when they are driving. Even after your teen gets their license, you can still accompany them by asking them to drive on shared trips, even just around town. They will gain driving experience, and you will have an opportunity to observe them driving and, when necessary, make suggestions to help them be a safer driver.
  • Be a good role model. One of the best ways to teach your teen to be a safe driver is by being a good role model. Show them that being a safe driver means wearing your seatbelt, driving at an appropriate speed, being respectful of others, and following the rules of the road. If you do not drive safely, your teen is more likely to view unsafe driving practices as acceptable.

Contact Muth Law, P.C., Today

If you were involved in an accident involving a teen driver, the car accident attorneys at Muth Law can help. Call us at 734-481-8800 or contact us online to schedule an appointment to discuss your situation.

Categories: Auto Accidents