by medkmh1 » Mon Oct 13, 2008 08:00 pm
We hired a child care provider to pick up my son from his preschool twice a week. The babysitter will drive my car. If (god-forbid) she is in an accident, will her car insurance cover the accident or will my insurance cover it since it is my car? And, should we increase our auto insurance to cover our assets?
Posted: Mon Oct 13, 2008 08:24 pm Post Subject:
Most insurance follows the car first, then the driver. If you give your cc provider permission to drive your vehicle, then there is coverage.
Do you even know she has insurance? I ask this because should your coverages not be enough should something happen, then her insurance would pick up any excess. If she is uninsured....
Now, I would absolutely increase every bit of coverage you can. Max out your auto. Get an umbrella policy.
Since she is going to be in your home, I would also increase your HO liability too - in case she hurts herself in your home, you are liable.
Posted: Mon Oct 13, 2008 08:35 pm Post Subject:
Hey Life....expalin "umbrella policy"/ Please.
Posted: Mon Oct 13, 2008 08:47 pm Post Subject:
Personal Umbrella Policy (PUP, Umbrella) - Increments of a million dollars. Will extend your liability an addition 1, 2, (etc) above what your limits are on your auto or HO. This will help if you are sued due to an accident.
Example: Your auto liability limits are 250/500/100 and you have a million dollar umbrella policy. Your liability limits are now increased by a million dollars so if you get sued for 1.25 million dollars, you have insurance to cover the total amount. Same with your home. $300,000.00 liability on your HO policy. Million dollar umbrella. Now you have $1,300,000.00 liability coverage on your home.
They are very inexpensive. With average credit, a million dollar umbrella will range anywhere from $250.00 to $400.00 per year. You also have to "max" out your liability for your auto and HO to get one.
Posted: Mon Oct 13, 2008 09:16 pm Post Subject:
Wow that isn't even really that expensive. I just don't understand it all when it comes to auto accidents. They always put this fear in a person about if there caverage is too low (mine isn't) they risk being sued but yet when you read posts on here you see that it rarely ever happens. Guess I understand it to a point but then again I get anfry when someone doesn't care enough to carry better insurance.
I am sitting here with that very fear myself. Looking at more treatments at the hospitol tomorrw and now changes in meds ( like I need anymore co-pays) and this all has to come from my pocket (used up med. pay..thousands of dollars) then if they only have the lowest allowable limits as here in PA, which is $15,000...I am the sorry sucker who now has to pay for the rest of my life even though i was the careful driver.
Wish I would have found this site a heck of a lot sooner and seen that I needed to increase my own med and under ins. limits.
Posted: Mon Oct 13, 2008 09:26 pm Post Subject:
It really isn't. Most people are very surprised when I tell them. I usually tell people that every time they leave their house in their car, everything they own now and everything they will own in the future is in the trunk of their car. And..their house is like a bag of money..just waiting for someone to come by and take it. There are horror stories of lawsuits that result in liens, garnishment of wages, loss of retirement and college funds, etc.
I had a customer who purchased an umbrella policy. His kid was responsible for a 4 car accident. After paying for the cars and injuries (thanks to the PUP), he didn't pay a dime out of his pocket.
Posted: Mon Oct 13, 2008 11:13 pm Post Subject:
I like how you phrase it about carrying your in the trunk of your car..it really makes sense. It takes a ggod agent to sit down and explain all thee things to people who really do not understand the insurance world. I can tell you that being one of those people and coming here I have learne so much. I have people like you, Lori and tscope to thank for that. It is nice to have someone actually explain things to you in ways that you can understand.
Posted: Tue Oct 14, 2008 12:47 am Post Subject: childcare and auto insurance
Thanks for the explanations. :) We'll need to get an umbrella policy.
Posted: Tue Oct 14, 2008 05:30 am Post Subject:
Life has hit it just right, most of the insurance follow the vehicle and not the driver. Hence, if she wrecks your vehicle in an accident, your policy would play the role of the primary coverage on the car provided she has your permission to drive it.
Most of the carriers extend the coverage to the drivers living in the same household. You are required to find it out from your insurer.
And, should we increase our auto insurance to cover our assets?
IMO its always the wise thing to do since the state's minimum scarcely cover the expenses that may arise out of an accident. You should do it not only because you have the CC provider staying with you but also to protect your assets, since depending upon that state law you may even lose out all your possessions in a law suit filed against your for causing damages to others.
~Jeremy
Posted: Tue Oct 14, 2008 09:13 am Post Subject:
Your auto policy will cover her if she is a permissive driver.....as an insured driver...her policy will not kick in at all unless it's a massive accident and frankly you are underinsured...which I hope isn't the case anyway...
Since she is going to be in your home, I would also increase your HO liability too - in case she hurts herself in your home, you are liable.
You might want to check your policy wording on this...most policys will exclude coverage to an employee...also is she going to be living with you as well?Don't forget and life pointed this out...in order to even purchase an PUP you have to MAX (carry the absolute highest) the liability limits on all policys...then you can purchase a PUP.
Posted: Tue Oct 14, 2008 01:27 pm Post Subject:
Thanks for the explanations. We'll need to get an umbrella policy
PM me..I'll sell you one *wink*
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