Auto Insurance questions

[chellej]

I have 2 college kids on my policy, each have had one accident and the premiums are killing me. ($3400 for 6 months). I also have a 15 year old who will be driving in 6 months and it will be even worse.

Can anyone tell me what the ramifications of lowering my coverages to the minimums and picking up an umbrella policy would be?

I currently carry 100,000/300000 and minimum is 20000/40000.

Is this a reasonably safe way to handle it?

I may have to stop timesharing

 

[Berea1]

Transfer autos into your kids' name

I have a high amount of coverage on the whole family, meaning $ 300/500 and then a One million dollar umbrella. I do that because of the large number of uninsured drivers with no license who will come thru a light and kill me or a member of my family.

If each college kid has his/her own vehicle, I would recommend transferring titile of a car into each one's name and then having each get an insurance policy at the minimum coverage permitted.

Then drop them from your coverage. But, you cannot get an umbrella coverage policy, if you drop the coverage to the minimum of $ 20/40.

Talk to a good independent insurance agent about the various lines of coverage that are available.

All the best.

 

[chrisnwillie]

I have NY Central Mutual and also have a $1Mil umbrella. They MAKE me keep 300,000/500,000 in liability on all my cars so there is "no gap" in coverage.

Check to see what the minimun liability is for your carrier so there is no gap if you go for the umbrella.

 

[Icarus]

That's exactly right, they won't let you get an umbrella policy with minimum liability coverage on your auto policy. They may even charge you more because of the risk of your drivers.

-David

 

[bobcat]

That's exactly right, they won't let you get an umbrella policy with minimum liability coverage on your auto policy. They may even charge you more because of the risk of your drivers.

-David

I would transfer the cars into the kids names. I would also raise the umbrella policy to 3 million. One million is not enough. If you are sued, the party is going to come after you. I would call my insurance and tell him what you want to do. As stated before, the change of coverage is to low. The insurance co can drop your umbrella policy.I have an umbrella policy. Each year I have to fill out new forms an answer several questions. Then I wait to see if they will insure me again. In this day and age , I million dollar coverage does not go far if you need it. EXP, There are 4 people in a car, it is one of your kids fault, 4 lawsuits. Big payout.

 

[Courts]

I would transfer the cars into the kids names.

Problem with that, the kids will get really hammered on insurance.

If they have minimum coverage they better drive VERY carefully. Damages these days are very high for property AND bodily injury. If they have a serious accident where they are even partially at fault they could end up with debt for many years. I have seen this up close.

Let's all thank the courts for generous lawsuit awards. Some people think the insurance companies pay these awards, but it is the people who have insurance that pay in the "end".

.

 

[bobcat]

Problem with that, the kids will get really hammered on insurance.

If they have minimum coverage they better drive VERY carefully. Damages these days are very high for property AND bodily injury. If they have a serious accident where they are even partially at fault they could end up with debt for many years. I have seen this up close.

Let's all thank the courts for generous lawsuit awards. Some people think the insurance companies pay these awards, but it is the people who have insurance that pay in the "end".

.

This is just my thinking. It is better for the kids to get hammered on the insurance then you to lose your house and more from a lawsuit that the kids were at fault. I have seen it happen. After all, the insurance is high because of the kids. Somethings things happen. It is a hard lesson to learn, but an important one .

 

[Icarus]

If the kids are underage and living at home, separate policies won't necessarily protect the parents from liability. It might make the overall premiums cheaper. Or not. It would probably be a good idea to shop your entire insurance package out at this point. Good agents will know the right way to structure the policies. If your existing agent didn't structure the policies to your benefit, well, it's time for a new agent.

If they are living at college and spend most of the time away at college, then it may very well be cheaper overall for them to be insured that way. The fact that they both have had accidents doesn't help. But even so, if they are still dependents, the parents can still be sued no matter how the policies are structured. Yes, it may be difficult to prove that the parents have any actual liability, but they can still be dragged into the case and will have to mount a defense.

-David

 

[Egret1986]

This all sounds very scary!

The twins will be driving in two years. I've always heard rates for males are higher. Gosh, I know people do it; but I'm not sure how. College costs, auto insurance costs.........eeek! We've done some great vacations the last several years. This will definitely mean getting back to more simple, less expensive, drive-to vacations. But even then.........oh my!

 

[chrisnwillie]

If the kids are underage and living at home, separate policies won't necessarily protect the parents from liability. It might make the overall premiums cheaper. Or not. It would probably be a good idea to shop your entire insurance package out at this point. Good agents will know the right way to structure the policies. If your existing agent didn't structure the policies to your benefit, well, it's time for a new agent.

If they are living at college and spend most of the time away at college, then it may very well be cheaper overall for them to be insured that way. The fact that they both have had accidents doesn't help. But even so, if they are still dependents, the parents can still be sued no matter how the policies are structured. Yes, it may be difficult to prove that the parents have any actual liability, but they can still be dragged into the case and will have to mount a defense.

-David

This is very true. As a parent of a 32 year old, here is what happened to us.

When he was college age, I had his auto under my insurance with him listed as a driver. An elderly man without a license, ran a traffic light and my son broadsided him and totaled his car. We were charged with 40% fault, since the insurance companies litigated it and found that my "20 year old son should have used caution while entering an intersection". I was furious and the insuance company dropped us.

He went on to marry and then moved back hom 7 years later in a divorce with a 1 year old child. He had his own insurance obviously. He slid ice and rear ended someone. SInce he was living under my roof, the person sued him for injuries (in which they were NOT seriously hurt) and sued me as well, since he was living here. My insurance company defended it and won, but lesson learned. They can and will sue you regardless if your kids are self insured or not, as long as they are technically living under your roof, college or not regardless of how old they are.

 

[sfwilshire]

I also have a 15 year old who will be driving in 6 months and it will be even worse.

The kid will hate me, but what's wrong with telling the 15yo that he's not going to drive for a while. We did that with #2 after seeing how much our insurance went up when we added my oldest (female) child. We didn't let the second drive until he turned 18. He hated it, but he didn't have a job and it wasn't ALL that big of a hassle to keep driving him around like we always had.

We were also "terrible parents" and never allowed the teens to ride with or drive other teens. They hated the restrictions, but I've seen too many accidents caused by the distractions of other kids in the car. I was willing to take the heat from them rather than get that phone call that everybody dreads in the middle of the night.

Sheila

 

[bobcat]

The kid will hate me, but what's wrong with telling the 15yo that he's not going to drive for a while. We did that with #2 after seeing how much our insurance went up when we added my oldest (female) child. We didn't let the second drive until he turned 18. He hated it, but he didn't have a job and it wasn't ALL that big of a hassle to keep driving him around like we always had.

We were also "terrible parents" and never allowed the teens to ride with or drive other teens. They hated the restrictions, but I've seen too many accidents caused by the distractions of other kids in the car. I was willing to take the heat from them rather than get that phone call that everybody dreads in the middle of the night.

Sheila

Why not make the kids pay for their insurance. All parents have ups and downs with their kids. Cars are always a hot topic. We had highs and lows. However, I layed down the rules. On a great note, our son turned out great. Sometimes being strick is the way to go. We have to teach our kids and guide them. When your kids are from 1to 12 Mom and Dad know everything. From 13 to 23 Mom and Dad know nothing. However, sometime after, they come back and say, boy you are smart, when did you receive your PHD. They forget, at one time we were kids to. After all, we want the best for our kids and to be safe.

 

[chellej]

We have had the rule with each of our kids that they cannot get a license until they get a job. We figure if they aren't willing to work for it, they are not responsible enough.


My oldest took driving lessons and could have gotten his license at 16 but didn't want to work so he did not get his license until he turned 18. He also got a job at the same time.

My DD wanted her license at 16, got it and 2 jobs.

We don't make them pay the insurance but they do pay routine maintenance, gas and spending money.

I would make my youngest wait but my DH just took a job that he travels more than 50% of the time, I travel locally and it is not always possible to get him where he needs to go plus my Dad is 89 and lives with us. Until DS can drive, I cannot consider even 1 night away just in case my Dad needs a prescription or in an emergency.