by kirtap » Tue Feb 26, 2013 05:58 pm
Apparently Progressive and Farmers allow this, but I just spoke with an agent from another company and they said it's not allowed because there is no insurable interest since my son owns the car and it is registered and titled solely in his name.
I spoke to two different people at Progressive, one person at Farmers, and both said yes, even though this is the case I can insure his vehicle since we live in the same household.
What do you recommend I do? I'd love to save (a good deal of) money consolidating our policies but on the other hand I don't want my son to be refused a claim on his vehicle because it turns out they don't allow it after all.
Would our butts be covered if we had it signed and in writing from the insurance company that the insurance company allows it?
I spoke to two different people at Progressive, one person at Farmers, and both said yes, even though this is the case I can insure his vehicle since we live in the same household.
What do you recommend I do? I'd love to save (a good deal of) money consolidating our policies but on the other hand I don't want my son to be refused a claim on his vehicle because it turns out they don't allow it after all.
Would our butts be covered if we had it signed and in writing from the insurance company that the insurance company allows it?
Posted: Wed Feb 27, 2013 02:13 am Post Subject:
If the vehicle were a total loss or damaged would you suffer a loss as well? If yes, then you have an insurance interest. You can almost always say yes. Foe example, if the vehicle suffered a loss would you need to pay any portion of that... such as the deductible? If so, you have an insurable interest. Do you ever drive the vehicle? If so... insurable interest.
In that your son lives in your same HH really shows he's dependent on you. As such, I'd think you would have some interest in the vehicle. It's not a stretch.
Posted: Wed Feb 27, 2013 01:09 pm Post Subject:
It shouldn't pose a problem if your insurer allows it. Yes, ofcourse they'll look for insurable interest. tcope has pointed out all about it.
But if your son owns a vehicle, he should be able to pay for the insurance as well. If you use the car often, you can list yourself as the driver.
Why complicate matters when there is a simple way-out? However, it's between you and your son.
Posted: Wed Feb 27, 2013 03:07 pm Post Subject:
Despite what the insurers have told you, if your son lives on his own, and the title to the vehicle does not include either you or your spouse's name, coverage under your policy is not permissible. The only exception would be if "living on his own" was connected to going to college.
As an adult, he should learn what it means to be a responsible adult, and purchase his own insurance.
Posted: Thu Feb 28, 2013 02:27 am Post Subject:
Thanks everyone. I double-checked with the state and they said there's no problem, it's up to the insurer whether or not they want to allow it, and I also asked someone else from the companies and they reiterated that they do allow it.
MaxHerr, my son lives with us. He actually is a responsible adult, he is paying for the added cost of my premium and in fact he even offered to cover the entire cost of the premium for us.
Posted: Thu Feb 28, 2013 12:39 pm Post Subject:
MaxHerr, my son lives with us.
Do you furnish his support or is he on his own? Would you be financially harmed if his vehicle were involved in a collision and declared a total loss?If your son is living in your household, at the very least that information must be communicated to the insurance company that insures the vehicles you own. It is up to the insurance company as to whether or not they will insure him under the same policy. Some insurers will, and many will not.
Obviously, if they don't, then none of you would qualify for the multi-vehicle discount usually provided, which is the reason they will or they won't in your case. If they will not insure him under your policy, it could still adversely affect your cost of insurance or his. If he has a poor driving record, unless he is excluded as an driver, your cost of insurance could increase. If you have a poor driving record, then the same could be true of his separate coverage.
Being on title would simplify the matter, because it would establish insurable interest, and then all the vehicles would be insurable under one policy for certain. And all drivers would be listed as insureds regardless of which vehicle they drove.
What do you recommend I do? I'd love to save (a good deal of) money consolidating our policies but on the other hand I don't want my son to be refused a claim on his vehicle because it turns out they don't allow it after all
If all the information were openly communicated to the insurance company and they agree to issue a policy, it would be an unfair claims practice to subsequently deny coverage in the event of a loss. You would not be left hanging out to dry, so to speak.How likely is your son to continue living in your home? A few months, a few years? That too is a consideration. It makes no sense to add him to your policy if he could decide to leave at the drop of a hat, or at the invitation of a "significant other" to move into that person's home. That's one of the reasons an adult should take responsibility for himself and have separate insurance for his separate property. (I won't get into the co-dependency issues this also raises -- that's something for you to discuss with "Dr. Laura.")
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