What Now: Insurance for the 18+ Year Old Youthful Driver Orange County Costa Mesa Insurance
My Kid’s Turned 18 – Should He/She Get His/Her Own Cheap Insurance?
How about: NOT.ON.YOUR.LIFE!
Here is how the thought process goes… “Hmmm, I pay a LOT for my kid’s insurance. He’s going to college in the Fall, so he can now get his own policy, at really low limits from an unheard of named company.”
What does that mean exactly?
Just a few things to consider;
- Just because your child is 18 and is able to; vote, purchase a gun, enlist, get married, enter into a financial transaction, and purchase alcohol (in certain states), that does NOT mean that they are financially independent.
- If you are paying for ANY portion of your child’s; room and board, college, books, transportation, insurance, etc., you may be held legally responsible for the liability of negligence on behalf of your child.
Facts to Consider;
- Most “really cheap” policies will be the State minimum of 15/30/5 ($15k bodily injury liability per person, $30k per accident, $5k property liability). $15k will cover roughly the first few hours in a trauma unit. $5k might cover a low speed crash into a Toyota.
- Teenage drivers account for 10% of all drivers but 12% of all fatal accidents.
- Data taken from a 2005 survey on drug use and health revealed that 18-25 yr. olds have the highest prevelance of binge drinking (42%) and heavy drinking (15%) as compared to the rest of the population. In the same study 20% of drivers 18+ admitted to driving under the influence, while 27% of the 21-25 yr. olds admitted the same.
What Does this Mean to YOU?
Here is the test if you are having your adult-child purchase their own coverages;
Does your adult-child (either/and/or);
a) Live in your home
b) Go to college
c) Depend on your financial support
d) None of the above
If the answer is any of “A-C”; then you may be held liable in their next car accident. The bottom line is: if you’re “footing the bill”, your adult-child is relying on you. It’s about the money-trail.
If the answer is “D”; then your adult-child can get any coverage they want to.
How do you protect yourself?
There are several ways to protect yourself.
- If you are insisting on having your adult-child pay for their own auto insurance and you are financially responsible for them, then demand minimum limits AND make sure you are named as an additional insured on their policy. The latter will ensure that you are notified when the policy limits are changed and also whether the policy cancels.
- If your adult-child lives in your home but is independent, make sure that you have a signed rental agreement in force, and that rent is paid regularly. You may still want to be listed as an additional insured on their auto and rental policies just to be prudent.
- Have a professional and licensed insurance agent regularly review your policies and scenarios to help lessen liability risks.
The bottom line here is; be aware. We live in a world that is looking to push every angle and squeeze people. Don’t assume that “this can’t happen to me”. Also, make sure that you have good, adequate coverage.
I am here to be a resource to you. Feel free to email me your questions or insurance coverages for a free review; eric@CIAforInsurance.com or fax 714-333-4966 There’s no secret to good insurance coverage, just better service at the CIA.
Auto Insurance Agent, Agency, Broker Orange County, Costa Mesa, Newport Beach, Irvine, Fountain Valley, Huntington Beach, Safeco Travelers, Nationwide, Mercury, Progressive, Metlife. Teen driver, young driver, good student discount, easypay.