Adult kids insured

[InsuringKids]

Hello all,

I'm paying for automobile insurance for two vehicles. The Mazda is owned by my adult (age 25) son & his wife. The Volkswagen is owned by me, where I'm still making payments. I own two other vehicles, that my wife & I drive. Our son is listed as a driver on the policy, his wife is not. Our son has had a DUI, so a SR-22 is required. They don't live with us.

I want to drop those two cars (and driver) off our insurance. Due to family concerns, it's not that simple.

What are my options here as well as my financial liabilities?

Trevor

 

[adjusterjack]

You're right. It's not that simple.

Answer these questions:

1 - Does your insurance company know that the Mazda on your policy is not owned by you but is owned by an adult family member who lives elsewhere?

2 - Does your insurance company know that you are furnishing an owned vehicle to an adult who lives elsewhere and isn't listed on your policy?

I don't mean that you casually mentioned this to your agent at the last barbecue. Was all this revealed to your insurance company on your application for coverage or in writing at some point when the changes in your situation occurred?

You could be in deep trouble if your son or his wife have an accident and your insurance company finds out you concealed all of this.

I suggest you get over to your agent's office and get all this resolved OFFICIALLY with notice to your insurance company as to how things stand.

 

[InsuringKids]

Thank you adjusterjack. The insurance company is not aware that they live elsewhere. They are aware that the Mazda is not owned by me, but by the adult kids.

 

[InsCommentary]

If he's not a named insured (or otherwise covered by some endorsement we're not aware of), your son has no coverage for damage to the auto. He also has no kind of coverage for the use of any other vehicles not insured on your policy. He has no 'automatic' coverage for acquired autos. There are many potential problems here, these perhaps being the least of them.

 

[InsuringKids]

He is a named insured, but his wife is not.

 

[InsCommentary]

Being a named insured means more than just listing as a driver. Is he truly a "named insured" or is he just listed as a driver?

 

[InsuringKids]

he's listed as a driver. I'm sorry to confuse the issue.

 

[InsCommentary]

They need to talk to their insurance representative ASAP.

 

[InsuringKids]

thank you for the advice!