An aunt is the owner of a car that she she insured. Her 43 year old nephew (who lives with her) drove the same car while intoxicated and caused property damage and fractures/injuries to other people. The aunt's policy claims to cover "family members" but the nephew is not specifically named as a policy holder. If the nephew has 100% fault and the aunts insurance claims fault is the aunt also exposed to punitive damages from the injured people?
2 Answers from Attorneys
No. If he was driving with her permission, the insurance carrier should cover the matter upto the policy limits. Your aunt should contact her own lawyer to make sure the insurance carrier responds properly.
You aunt can potentially be responsible for punitive damages beyond the policy limits. There may or may not be coverage for the driver, depending on the facts and circumstances. I wholeheartedly agree with Mr. Slater, your aunt needs to contact her own attorney asap.