Yes, if she wrecks the injured party can come after you.

My insurance company did not allow me to cover my adult son when he no longer lived here.  I had no idea, but they call us annually to review our policy (cars, drivers, miles, residency) and when I answered honestly, they booted him.

https://clearsurance.com/blog/adding-someone-to-car-insurance-who-doesnt...

Call your insurance company and let it slip that she doesn't live there.

That is what your husband is. It doesnt matter how amazing he is in any other way. The way he treats and speaks to you regarding his kids is disgusting.

My outcome was divorce, but not based on this issue alone.  So your DH is a bully and makes all the decisions like you are a child. Doesnt sound equal to me. Its downright shitty.

Can you get your own car insurance and let DH and his wife, er I mean SD be on one together? Or this doesnt make financial sense?

Blessings and good luck lady

https://www.nerdwallet.com/article/insurance/car-asset-protection

This hasnt happened to me, but now that you bring it up, I will need to research this further.

https://www.nerdwallet.com/article/insurance/car-asset-protection

Heres how you can protect yourself. Just make sure you have umbrella coverage and her car is titled to her name. You have your assets and anything joint they cant go after. Thats according to this article.

But the bigger issue is that person you are married to.

Yes, indeed. Adult SS was in an accident, his car was titled in DH's name and he was on our insurance. The other party came after DH too. Fortunately nothing came of it because she was at fault.

Next car was titled in SS's name, but DH was still stupid and kept SS on our insurance. I don't know how that was even possible as SS lived in another state. I actually didn't mind the money part -- SS was working hard and doing his best. I would much rather have sent him money every month if he needed it and let him handle his own grownup business.

The other thing is that once on Dad's plan, there's not much incentive to do anything else. When SS finally worked through his issues and got a decent job, I had a hell of a time getting him off our cell phone plan and car insurance. It all worked out eventually but it wasn't pleasant. I finally figured out that this was about DH needing SS to need him.

Call the insurance company and have them remove her. If they can't, have them set you up with a new policy. No, it won't protect your joint assets should SD get into a big accident. However, maybe the inconvenience of you not helping him pay for his daughter's insurance mixed with the 9th circle of Hell level of pissed that he'll be will push you to make a permanent change where his BS doesn't impact your life long-term.

I could forgive and likely get over my spouse giving their kid money to pay for their car insurance, but putting my assets at risk and telling me I can deal with it would be a bridge too far. Coddling is annoying, but disrespect is toxic. Your DH isn't doing something annoying; he's doing something toxic.

I have never heard of an insurance company insuring a car unless the policy holder(s) are on the title of the car.  Are you sure he didn't cosign for it?

My DSO cosigned for SD so she could be on his insurance and save big bucks since she is 20.  We aren't married and he has his own insurance and I have mine even though we are both on the titles of our vehicles, bikes, etc.

PS   I'm not mad he did it as she is a good kid.

DAH did this years ago with SD39 (Leech). Leech was 25 at the time, she was in an accident, and one person was injured. Needless to say we were sued since the insurance was in our name. Leech acted like it was no big deal, since it wasn't effecting her. We were told that if the insurance company could not settle the amount that it was possible that we would have to sell our house to pay the outstanding amount. Our house is in a trust that I inherited when my dad passed away, and is in my name only. We now have separate insurance accounts, DAH has one for all the vehicles that he owns and  I have a separate insurance for my vehicles.  At this point in time, I am sure he would never do this again, but I am not taking any chances.

Do not let your DH put you in the situation of possibly losing everything. If he wants to be stupid and have her on the insurance, tell him that everything that both of you co-own needs to be put in your name only. Or if he wants to baby a full grown adult, then have him pay for her insurance for a year, but have the insurance in her name only.

My DH can be quite the same way about these things....

Case and point my SS was on his insurance.  This was before we shared insurance.  SS got a DWI no accident.  DH's company was going to cancel DH if he didn't drop SS.  I made it a point to make sure no kids were on our insurance as SS has gone on to collect 2 more DWI's and the second 2 included accidents.  Thank God SS didn't kill someone but it was still poor SS as he laid in the hospital with DH running to his side and BM using it as a reason to contact DH .... a mess!  A mess that I stayed out of !!! 

DH got mad at me one time when DH was driving my old car as a winter rat that was under my insurance.  He was going to let SS drive it for a few days.  I said no you're not and he said I thought you said it was my car I said it is but it's not your insurance it's mine and I will be damed if someone who gets DWI is going to drive it.  It was after SS first and he said he will never do that again... I said says you!!  so he did not drive it DH was mad but we see that I was sadly right... SS got 2 more DWI's.  Never trust him after the first hello???

I am so sorry for you!!  You are not wrong your DH is.  he should never add anyone to your insurance.  Get your own!!

Wow

Sorry about all this. 

Like one to two million worth of insurance. Should be like $400 a year I think. You need to have certain limits on main car insurance and your homeowners insurance 

Your DH and SD are committing insurance fraud.  How do I know this?  Because I'm an insurance fraud investigator for a major carrier, and investigate several cases like this each month.

Neither you nor your DH are on the car title / registration.  That means neither of you has an insurable interest in the car.  That's a huge issue.  Your SD doesn't live with you and apparently hasn't in quite some time; this raises a garaging issue.  Where a car is is principally garaged can effect premiums.  

I don't deal much with California so I can't cite the insurance regulations chapter and verse.  I can tell you, though, you need to call your agent, let him or her know what's going on and see about getting SD off the policy.  The very last thing you want is being flagged for committing misrepresentation.  Believe me, the insurance industry has databases to keep track of such things, and carriers share information with other carriers.  

I agree with the other commenters on here.  I'm so sorry you are going through this and your husband is being an a$$.  His daughter is an adult and should be on her own insurance policy.  My parents only kept us on their car insurance policy if we were living with them and in college full time, after that, we were on our own.  I certainly wouldn't want her on the insurance because you all could be dragged into a mess if an accident happens.  I hope things work out for you all.  Also, I understand where you are coming from as my DH doesn't allow me to offer any insight or input into his 21 yo son's life either, even though I am the one who is financially supporting them both.  His son is unemployed, a pot head, no plans, no future - just hangs out all day eating all the food and playing video games.  If I say anything about his son, my husband becomes enraged and then ignores me for days.  I am in the process of leaving this situation because it will never change.  My DH also has his son's care on his insurance policy but I'm not on it, I have my own policy.  And there's no way in hell I would EVER insure someone's adult offspring on my car insurance. 

Take care of yourself - I hope everything works out!

Should be to your city's Top Divorce Attorney to see where you stand in your situation and what you'll take away when you leave so you can start planning.  To me, it sounds as if you might be stuck in this marriage and can't quite see your way out... Especially with a Schmuck who belittles and thinks he can control you!  Find your Fire!  Bust down whatever holds you back and dig yourself out of the Hell you're going thru!!  You know you want to - and we here know you CAN!!