by hummingbird » Mon Sep 14, 2009 02:51 pm
I am afraid to ask my insurance company this question. I guess I should though.I was thinking that i read the answer but maybe I am wrong. I read somewhere that a policy covers any driver in the house .But My 18 year old daughter has been driving my car to school and work becasue her truck which is insured with the same company as my car is not working properly. I have been driving her truck and she has been driving my car to wrok and school If someone hit her would my insurance cover her you think? She is a safe driver has never had a ticket and always wears her seat belkt and insists that i do the same. She had a friend who was killed in a car accident who was not wearing a seat belt .She took it very hard and she was wearing her seat belt before all that .Does nayone know or should I ask the insurance company.If they said no that would really create a problem for us but if something happened and it didn't cover it we could be in worse trouble.What do you think?
Posted: Mon Sep 14, 2009 07:08 pm Post Subject:
Only your agent can give you a sure answer to this question, but most policies do have an exclusion for drivers in the household that are not named as drivers on the policy. So it's likely you could have a problem if she were to cause an accident in your car, or you in her truck.
Posted: Mon Sep 14, 2009 07:52 pm Post Subject:
Most likely this is fine... as long as no one lied about who was in the household. Insurance companies don't like it when people try to get away without insuring someone in the household, such as your daughter. They know the daughter is going to drive the parents car and they don't like not collecting a premium for this risk. In this case not only does she and you have insurance but you have it with the same company. So they are collecting the right premium for the risk.
The alternative is that both of you pay more to have duplicate coverage under the other person's policy. This makes no sense and I've not seen any carriers try to do this.
Posted: Mon Sep 14, 2009 08:34 pm Post Subject:
They know the daughter is going to drive the parents car and they don't like not collecting a premium for this risk. In this case not only does she and you have insurance but you have it with the same company. So they are collecting the right premium for the risk.
We don't have enough information to know this. Usually the only reason that a resident child would be on their own policy is to save money. Either due to the child having driving record issues or mom and dad having right-rated full coverage cars and the child a beater. In many cases the child will purchase lower limits (or less coverage ie Liab only instead of full cov) In these situations the company is not collecting the correct premium for the risk of the child operating the vehicle with higher limits or broader coverage. Also, there are plenty of companies that wouldn't necessarily know if two members of the same household had coverage with them if it was not specifically discussed.
The alternative is that both of you pay more to have duplicate coverage under the other person's policy. This makes no sense and I've not seen any carriers try to do this.
Not duplicate coverage, just the right premium for the risk. Usually this is acomplished by rating the child with his/her own coverage as a "non-rated" driver on the parent's policy, meaning any accidents or violations are average into the parents' rating as opposed to rating them as a principal or part time operator. And vice-versa with the parents on the child's policy.
Posted: Mon Sep 14, 2009 09:11 pm Post Subject:
In many cases the child will purchase lower limits (or less coverage ie Liab only instead of full cov) In these situations the company is not collecting the correct premium for the risk of the child operating the vehicle with higher limits or broader coverage.
You are combining 1st party coverage with 3rd party coverage in this statement. Collision insurance is 1st party coverage, "higher limits" is liability coverage.While there are small differences, collision premium is based on the type of vehicle being insured. Who is driving it means very little. Yes, some people might crash their vehicle more often but most of this exposure is already being collected in the form of 1st party premium.
Usually the only reason that a resident child would be on their own policy is to save money.
I'd say most of the time it's more expensive not to be covered under the parents policy. I'd say it's more likely that the daughter has her own policy because the car is under her name and the parents don't want the liability exposure against them as well as their daughter.Also, there are plenty of companies that wouldn't necessarily know if two members of the same household had coverage with them if it was not specifically discussed.
Right... they would not know this until the accident happened. At that point they'd check the application to see if anyone lied. They would also consider if the family was trying to get "free coverage". Since they are both paying premiums for the risk, the insurance company would probably not see any problem. In that it's the same company collecting both premiums its even better for the carrier.Not duplicate coverage, just the right premium for the risk.
There are only so many car and so many people. If there are 2 people in the house and 2 cars then each person can only drive 1 car at a time. If they each had their own policy they would each be paying a liability premium. This is fair. If they were each paying an additional premium to be insured under the other person's policy they would be paying more for the same risk... that is, they each still only be driving 1 vehicle.Posted: Tue Sep 15, 2009 02:00 am Post Subject:
Wow! Sure didn't mean to start a debate...lol My daughter has a spotless driving record.She does have an older truck an 88 I beleive and it is in both her father's name and hers and we all each of us have a vehicle we drive with liability .She is only driving mine temporarily till we figure out what is wrong with hers the reson it keeps stalling when she stops.We were concerned for her safty the reson she doesn't drive it.Me being a more experienced driver have been making due driving hers.I am sure the insurance company knows we all have insurance there.
Posted: Wed Sep 16, 2009 08:57 pm Post Subject:
While there are small differences, collision premium is based on the type of vehicle being insured. Who is driving it means very little.
Not sure where you get this idea. While the vehicle rating symbol is certainly a big rating factor, here is a real example from a major carrier's preferred auto policy. 1997 Honda Accord 500 deductible collision. Collision premium for 46 year old male driver = $117 semi-annual. Collision premium for 18 year old male driver = $405 semi-annual.
Who's driving it means very little. If 246% is very little.
As for being more or less expensive for the child to be on his/her own policy, it is going to be less expensive to rate a young driver on vehicle with state-minimum, liability only coverage than on the parent's new car on a 250/500,000 policy with comp and collision.
They would also consider if the family was trying to get "free coverage". Since they are both paying premiums for the risk, the insurance company would probably not see any problem. In that it's the same company collecting both premiums its even better for the carrier
They are at least getting very discounted coverage, if not free. Lets stick with my 1997 Accord. The full premium for the 18 year old is $1092 per half, and JR is driving around in this accord while he's rated on a separate policy with a 1992 Dakota with state min limits and and no phys damage for a rate of 518.00 per half. The 46 year old dad's rate being $425 per half on the full cov honda and $160 per half on the Dakota. So, the company should be getting $2504.00 annually and instead they're getting $1886/year. How is it better for them to be shorted $618.00 a year?
I'll re-stress that, hummingbird, there is a good chance you're not doing anything wrong. But you should never be afraid to ask your agent a question because you think it might cost more to be insured correctly.
I'll also admit that this is more an issue of rating than coverage and that's the only reason I'm still going. Collecting the right premiums for the actual risk assumed is what keeps insurance companies solvent and we all that. At least all of us who don't keep several hundred thousand dollars laying around in case we cause a serious accident.
Posted: Fri Sep 18, 2009 06:27 pm Post Subject: ...
I'd talk to an insurance agent before I assumed anything, especially with a teen driver.
Add your comment