Who"s Auto Insurance Covers the Kids After They Have Moved Out
If you raised a Teenager you know the pattern all too well.
Your boy suddenly reaches the age when he can finally get a learner's permit to start driving.
After one or a few of tries, he passes the driving test and gets his life changing ID his drivers license.
After he tries to get a Discount Auto Insurance policy himself and realizes he can't afford it.
You decide to pay and tell your insurer about your enthusiastic new driver.
Your vehicle insurance policy will include him throughout high school, when he graduates and goes to college, and while he's back home.
At some point, he grows up and moves out on his own for good.
Maybe he moves to a city with a good transit system, and his 1st job doesn't pay enough for him to pay all his bills and still afford a automobile in the city.
So for the time being he goes without one.
One day, he finally gets the courage up to ask out that girl in the accounting he's been flirting with.
Meeting her at the local pizza place just won't fly, so he begs his new best friend to borrow his vehicle.
The friend, agrees to lend him the car if he puts gas in it and gives him money for a sandwich.
Your young Don Wan picks up his date, pulls out onto busy 5th Ave, and bam rear-ends a BMW.
Confused, he throws the vehicle into reverse and smacks into the Saab behind him.
Two questions blow up in his head: 1) Is the date over? and 2) Does his friend[spin] have [spin]vehicle insurance to cover his exciting first date with dream girl accountant? Bad news for your Don Wan: The girl grabs a cab and his friend missed his last insurance payment; the policy gets canceled for failure to pay.
Then a light bulb turns on: Am I still on Mom and Dad's auto insurance.
Just maybe their insurance policy will cover the repairs.
Every insurance policy has a specific descriptions of who is cover under the policy.
The standard Personal Auto Policy published by the Insurance Services Office states that the first named insured on the policy and "family members" have coverage for the ownership, maintenance or use of any automobile.
Maybe Don Wan got lucky.
Or maybe not.
All car insurance policies also have a specific definition for the term, "family member:" A individual that is related to the 1st named insured on the vehicle policy.
The family member has to be related by marriage, blood or adoption and must also live in the 1st named insured primary home.
Young Don Wan left your home, which is when he started his career, met his dream girl, and borrowed his new friends uninsured vehicle.
In 1975 a California court came to a decision on a similar case where an adult son who lived in a separate house from his parents but on the same street and relied on them for financial support was not considered a resident of the their household and therefor wasn't covered under their car insurance policy.
There are exceptions to these rules.
Courts have recognized that children in college, although they live at college, are still considered residents of their parents home.
Even a self-supporting child who still lives in your home but pays you rent will also qualify as a resident usually up until the age of 25.
It's when they permanently move away from home that the break in coverage will occur.
Even if your child doesn't own a car, they should consider getting Free Insurance Quotes for a Names Non-Owner vehicle policy.
This will protect them for injuries or damage that may occur while renting or borrowing a automobile.
And, although your Don Wans' date most likely would have ended anyway, it would have saved him a big headache and a lot of money.
Your boy suddenly reaches the age when he can finally get a learner's permit to start driving.
After one or a few of tries, he passes the driving test and gets his life changing ID his drivers license.
After he tries to get a Discount Auto Insurance policy himself and realizes he can't afford it.
You decide to pay and tell your insurer about your enthusiastic new driver.
Your vehicle insurance policy will include him throughout high school, when he graduates and goes to college, and while he's back home.
At some point, he grows up and moves out on his own for good.
Maybe he moves to a city with a good transit system, and his 1st job doesn't pay enough for him to pay all his bills and still afford a automobile in the city.
So for the time being he goes without one.
One day, he finally gets the courage up to ask out that girl in the accounting he's been flirting with.
Meeting her at the local pizza place just won't fly, so he begs his new best friend to borrow his vehicle.
The friend, agrees to lend him the car if he puts gas in it and gives him money for a sandwich.
Your young Don Wan picks up his date, pulls out onto busy 5th Ave, and bam rear-ends a BMW.
Confused, he throws the vehicle into reverse and smacks into the Saab behind him.
Two questions blow up in his head: 1) Is the date over? and 2) Does his friend[spin] have [spin]vehicle insurance to cover his exciting first date with dream girl accountant? Bad news for your Don Wan: The girl grabs a cab and his friend missed his last insurance payment; the policy gets canceled for failure to pay.
Then a light bulb turns on: Am I still on Mom and Dad's auto insurance.
Just maybe their insurance policy will cover the repairs.
Every insurance policy has a specific descriptions of who is cover under the policy.
The standard Personal Auto Policy published by the Insurance Services Office states that the first named insured on the policy and "family members" have coverage for the ownership, maintenance or use of any automobile.
Maybe Don Wan got lucky.
Or maybe not.
All car insurance policies also have a specific definition for the term, "family member:" A individual that is related to the 1st named insured on the vehicle policy.
The family member has to be related by marriage, blood or adoption and must also live in the 1st named insured primary home.
Young Don Wan left your home, which is when he started his career, met his dream girl, and borrowed his new friends uninsured vehicle.
In 1975 a California court came to a decision on a similar case where an adult son who lived in a separate house from his parents but on the same street and relied on them for financial support was not considered a resident of the their household and therefor wasn't covered under their car insurance policy.
There are exceptions to these rules.
Courts have recognized that children in college, although they live at college, are still considered residents of their parents home.
Even a self-supporting child who still lives in your home but pays you rent will also qualify as a resident usually up until the age of 25.
It's when they permanently move away from home that the break in coverage will occur.
Even if your child doesn't own a car, they should consider getting Free Insurance Quotes for a Names Non-Owner vehicle policy.
This will protect them for injuries or damage that may occur while renting or borrowing a automobile.
And, although your Don Wans' date most likely would have ended anyway, it would have saved him a big headache and a lot of money.