Legal Question in Personal Injury in California

I am missing a few key facts. You would only be able to insure the car if you owned it or it is named as an also covered vehicle by someone living in your household. Assuming you are the legal owner of the car, your insurance carrier probably can deny coverage because the car in fact is constantly driven by someone else. Many parents do what you may have done to avoid the much higher insurance rates for teen age drivers, but you ar gambling that the carrier will accept what you have done, perhaps only making you pay more on prior yearly insurance.

If she is the owner of the car and claims she lives with you, that is no longer true and that would be a basis to deny coverage.

The non-driver owner of a vehicle has a maximum liability of $15,000. Any insurance policy amount reduces that liability, so if your daughter has $15,000 in coverage, then you would owe nothing.

Being sued for more than $15,000 and actually demanding that amount at settlement are two different things. Plaintiff's attorneys always sue for more than they are willing to settle for. If there was a judgment greater than whatever the insurance policy limits are, the your daughter is responsible for the excess. But if you know she is a poor driver, you could be sued for negligent entrustment of your car to her. Your ex-husband probably does not have to worry about being sued.