Most auto insurance policies provide coverage to a named insured individual as well as his or her relatives. What you need to check in your policy is the definition of "relative." The Michigan Court of Appeals recently addressed this issue in Jenks v State Farm Mutual Insurance Co., an unpublished opinion from March 15, 2005. In State Farm's policy "relative" was defined as "a person related to you or your spouse by blood, marriage or adoption who primarily resides with you."
The issue in Jenks was whether or not the son of Dail Jenks and Donna Dixon was covered under Ms. Dixon's policy, as the son's primary residence was not with Ms. Dixon, but rather Mr. Jenks. The mother and father had joint legal custody of their son, James. Dail Jenks had sole physical custody while Donna Dixon had visitation rights with James. James had sued State Farm for uninsured motorist benefits under the policy issued to Donna.
The Court in this case focused on the term, "reside." The policy did not define the term "reside" so the court looked to Webster's Dictionary, which defined the term as "to dwell permanently or for some time; live." The policy stated that the relative must "primarily reside" with the policy holder. The Court stated that even assuming that James resided with his mother by virtue of the visitation arrangement, reasonable minds could not differ in concluding that he did not reside there "primarily" as he spent the majority of his time living in his father's house.
So what does this mean with regards to insuring your children? Essentially, it means that if you do not have at least shared physical possession of your child, he or she may not be covered under your policy. Every policy is different so it is important to check your individual policy to see this case applies to you. It is not clear what a court would do if a child spent an equal amount of time at each parent's house. The court defined the term "primarily" as "essentially; chiefly." An argument could be made both for and against coverage of a relative that spends 50% of their time with the policyholder. If you have any doubts at all, the best way to protect yourself would be to speak directly to your insurance representative and have them put it in writing that your child is covered under your policy.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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