When to move your kid to their own car insurance?

[PrivClientSG]

Why dies he say this?
1) depending on the distance from home to school and whether she takes car to school or not, she can't be removed from the policy as an operator
2) rates as an additional driver are far less than a single operator on a jr policy
3) time for said daughter to step up and pay her share of Dad's policy. The responsibility might make her a more cautious driver
4) removing and adding back the daughter runs the risk of forgetting on a school break or long weekend
5) Unless and until SF says no renewal until she is removed you keep her in place
6) sign her up for driver improvement class if available.

I did not see anything about an umbrella in place -- however, while all of the above might be true -- what is also true is that the owner of the car is going to get sued. Listen, I am the biggest supporter, proponent, and advocate for umbrella coverage. While I don't sell P/C coverage -- I talk to each and every potential new client I meet with about it and I insist that each and every new client has it. Period.

Part of my initial discussion with clients is about "creditors and predators" (vis a vis lawsuit, asset protection, and trusts), and when I actually begin to work with a new client -- if they don't have it -- they get umbrella coverage. If they have it -- they will increase it. Period. If they don't, I will most probably not work with them. This too is one of my weed checks.

However, covered or not, a lawsuit is not a pleasant thing. Keeping her on there allows you to control the liability and hopefully manage it.

 

[scagnt83]

I did not see anything about an umbrella in place -- however, while all of the above might be true -- what is also true is that the owner of the car is going to get sued. Listen, I am the biggest supporter, proponent, and advocate for umbrella coverage. While I don't sell P/C coverage -- I talk to each and every potential new client I meet with about it and I insist that each and every new client has it. Period.

Part of my initial discussion with clients is about "creditors and predators" (vis a vis lawsuit, asset protection, and trusts), and when I actually begin to work with a new client -- if they don't have it -- they get umbrella coverage. If they have it -- they will increase it. Period. If they don't, I will most probably not work with them. This too is one of my weed checks.

However, covered or not, a lawsuit is not a pleasant thing. Keeping her on there allows you to control the liability and hopefully manage it.

There is indeed Umbrella. Probably need to increase it. Just went over that convo with a client last week.

I really like the phrasing you utilize "creditors and predators"

 

[Allen Trent]

Keeping her on there allows you to control the liability and hopefully manage it.

Agree on everything stated about need for Umbrella, etc.

However, keeping her on the current policy with car titled also retains the actual liability for another adult that could be transferred away with title change & separate insurance.
Also retains the liability exposure for dad when adult child lets friends, boyfriends, college roommates, etc drive their car, ride in car, etc.

My 24 & 22 year old got their cars titled in their own name around age 20. Cars had no loans, but we went to credit union & got loan against them so they could establish installment credit & at same time got $500 credit union credit card for gas to establish revolving credit. Titles went in their own name & no need to pay state sales tax on car because we are related. Car payment is made to credit union on auto pay from the bank account created from the loan. Credit card is paid in full by auto pay each month.

Our insurance company moved them to their own policy from my policy & carried forward multi car discount, multi policy discount, our longevity credits, accident/ticket forgiveness & they retain my credit based insurance score until age 25.

Daughter is now married & Bought a house, so all set.

19 year old will be doing all the same as Above this summer when home from college with his car.

17 year old soon too.

All this said, if their driving record been substantially bad, it may have changed some of the math on removing their liability risk from me between getting me off their title & getting them on their own insurance.

Downside by doing the above is they lost the protection from my umbrella policy if they have an auto liability lawsuit exceeding their personal auto liability limits, but currently that have relatively no net worth..

 

[PrivClientSG]

Agree on everything stated about need for Umbrella, etc.

However, keeping her on the current policy with car titled also retains the actual liability for another adult that could be transferred away with title change & separate insurance.
Also retains the liability exposure for dad when adult child lets friends, boyfriends, college roommates, etc drive their car, ride in car, etc.

My 24 & 22 year old got their cars titled in their own name around age 20. Cars had no loans, but we went to credit union & got loan against them so they could establish installment credit & at same time got $500 credit union credit card for gas to establish revolving credit. Titles went in their own name & no need to pay state sales tax on car because we are related. Car payment is made to credit union on auto pay from the bank account created from the loan. Credit card is paid in full by auto pay each month.

Our insurance company moved them to their own policy from my policy & carried forward multi car discount, multi policy discount, our longevity credits, accident/ticket forgiveness & they retain my credit based insurance score until age 25.

Daughter is now married & Bought a house, so all set.

19 year old will be doing all the same as Above this summer when home from college with his car.

17 year old soon too.

All this said, if their driving record been substantially bad, it may have changed some of the math on removing their liability risk from me between getting me off their title & getting them on their own insurance.

Downside by doing the above is they lost the protection from my umbrella policy if they have an auto liability lawsuit exceeding their personal auto liability limits, but currently that have relatively no net worth..

Absolutely! Personally, from a risk management perspective -- even with a large umbrella policy covering everyone -- I don't like the idea of a parent getting sued in a situation like this. While the insurance company hires an attorney for defense, their job is nothing more than damage control. Keep the settlement as small as possible, minimize costs, etc. Dad only controls it to the extent that he can make sure the umbrella (and the underlying limits) are proper and inforce. When they get their own cars, apartments, etc. -- my client's children get their own umbrella policy ASAP. We arrange it and see to it that it's done (independent of their net worth).

HNW individuals and families aren't as concerned about negligible costs difference(s) as they are about liability and ramifications of same. For me, my clients -- our biggest concerns and our planning (risk management first) is always focused on liability, and especially from children and their activities. Parties, driving, swimming pools, jet skis, drinking, boats, all of it, and more, all need to be considered. I've had clients sued for many millions of dollars, the overwhelming majority all stemming from accidents with children. Sure, I've had clients themselves have accidents, been the involved party, etc., and they've gotten sued as well. However, I've never had one go above the limit of the umbrella coverage.

 

[Markthebroker]

I was in a similar situation at that age, but my parents didn't love me as much so they kicked me to the curb and told me to figure it out. It was a good life lesson.

Is she still living at home?

I just want you to know, we love you Alex.

 

[scagnt83]

For me, my clients -- our biggest concerns and our planning (risk management first) is always focused on liability, and especially from children and their activities. Parties, driving, swimming pools, jet skis, drinking, boats, all of it, and more, all need to be considered. I've had clients sued for many millions of dollars, the overwhelming majority all stemming from accidents with children..

Great points. Kids can cause a lot of damage!

I remember being a kid hitting balls on the driving range in the rain, maybe 9 or 10, club slipped out of my hand and went flying down the line towards some guy. Barely missed him, but it certainly could have got him in the head and caused a disability and financial loss. My dad was pissed!! lmao

Hell, Ive seen grown adults do stuff like that on the range or golf course. An errant drive over to the other fairway could hit someone in the head and kill them or cause brain damage. Your home and auto wont cover you on the golf course! Better hit them straight!! lol

Most people do not think about the stuff outside of their home or car. Vacations are a big one, boat rentals, golf cart rentals, bike rentals, jet ski rentals, e-scooter rentals; there are all kinds of activities people do on vacation that could cause a liability they are responsible for.

 

[adjusterjack]

Your home and auto wont cover you on the golf course!

That's wrong.

If you are negligent while engaging in a sport your policy will cover you. If you are accused of being negligent while engaging in a sport, but aren't, your policy will defend you.

 

[scagnt83]

That's wrong.

If you are negligent while engaging in a sport your policy will cover you. If you are accused of being negligent while engaging in a sport, but aren't, your policy will defend you.

I was unaware of that. Thanks for the info.

 

[PrivClientSG]

Hulk Hogan, Tommy Lee & Pamela Anderson, Jose Santos, Jim Boeheim, Kevin O'Leary, Lindsay Lohan, Gwyneth Paltrow, Dr. Phil, Bret Michaels, are just a few celebrities off the top of my head who were sued for accidents (auto, skiing, dog bite, drowning, etc.) . I have an entire portion of my initial discussion focused on lawsuit, liability, divorce, and as I already called it -- creditors and predators -- and how assets, wealth is at risk. It dovetails right into risk management step one which is proper insurance and umbrella insurance, ownership of assets, and estate planning and asset protection.

 

[Allen Trent]

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Hulk Hogan, Tommy Lee & Pamela Anderson, Jose Santos, Jim Boeheim, Kevin O'Leary, Lindsay Lohan, Gwyneth Paltrow, Dr. Phil, Bret Michaels, are just a few celebrities off the top of my head who were sued for accidents (auto, skiing, dog bite, drowning, etc.) . I have an entire portion of my initial discussion focused on lawsuit, liability, divorce, and as I already called it -- creditors and predators -- and how assets, wealth is at risk. It dovetails right into risk management step one which is proper insurance and umbrella insurance, ownership of assets, and estate planning and asset protection.

I am guessing Tommy Lee, Lindsey Lohan or both are the ones that were sued for biting a dog.