car insurance

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PostPosted: Mon Sep 20, 2010 5:49 pm   Post subject: car insurance  

when an 18 year old gets their license, do they have to be added on to my insurance policy and have my rates skyrocket? If my cars are fully covered, then, wouldn't they be covered if I let my 18 year old drive them without adding him to the policy. Is it the person that has to be insured, or the vehicle you are driving needs to be insured? what is the law in Illinois??

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PostPosted: Mon Sep 20, 2010 6:16 pm   Post subject:   

Depends on how your policy reads. Also, your carrier has access to drivers license info and can automatically match it up with your household. So they may require you to add your son, even if you don't.



If you don't add your son then you run the risk of not having any coverage. But this usually requires material misrepresentation. That is, your carrier asks you who in your HH is older then 15 and if you don't tell them the truth, they can deny coverage.



Is your son automatically covered without being on the policy? You really think most people add their kids and pay a premium when they don't need to? Your son probably will be considered an insured under the policy even if not added as long as he was a permissive user. The problem you face is that he's living in the household. Policies are written differently but many will go as far as they can to at last limit coverage when the person in the HH is not listed on the policy.

Quote:
Is it the person that has to be insured, or the vehicle you are driving needs to be insured?
Two different things... the _state_ requires that the _vehicle_ be insured but your carrier only covers those _people_ who are insured under the terms of the policy.
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PostPosted: Mon Sep 20, 2010 11:59 pm   Post subject:   

Quote:
the _state_ requires that the _vehicle_ be insured but your carrier only covers those _people_ who are insured under the terms of the policy.




A variation this is more common than one might think. Many insurers insert language in their contracts that state there will be MINIMUM LIABILITY limits only when an insured vehicle is driven by an unlisted driver.



If your 18 year old has ownership of a vehicle (he's the registered owner, or one of them), he can obtain insurance on his own, even if living in your household. And in that case, you would probably want to take the extra step of naming him as an EXCLUDED driver under your policy -- it allows you to avoid the "teenage driver" penalty you fear.



As long as he has his own full coverage, including collision, comprehensive, and uninsured, as an excluded driver, he will be covered by that policy whenever he drives one of your listed vehicles. But you would be doing him a favor to educate him in the need to carry high liability limits, not just the state minimums.



If he only carries minimum limits and no collision, as an excluded driver you would NEVER allow him to use your vehicles -- even for that 5 minute run to the market or pizza place. The majority of motor vehicle accidents happen within 20 minutes of home.


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PostPosted: Tue Sep 21, 2010 6:54 am   Post subject:   

It's time that we teach them to be responsible. If they can earn and spend it elsewhere, they should as well learn to pay for their own insurance. This way, they'd learn to be more careful while driving on the road.

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PostPosted: Tue Sep 21, 2010 2:08 pm   Post subject:   

Quote:
This way, they'd learn to be more careful while driving on the road.




And if they claim it's too expensive and they can't afford to pay their share of the premium, then perhaps it's not yet time to be driving a car . . . with all the other responsibilities that go right along with it.


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PostPosted: Mon Sep 27, 2010 7:52 am   Post subject:   

If you are shopping for new car insurance, then you might want to consider stopping by at progressive to purchase their car insurance. After being in business for over 70 years, this company has earned the trust and won the hearts of most citizens becoming the third largest insurance company in the nation. [Link removed - Admin]

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PostPosted: Tue Sep 20, 2011 11:45 am   Post subject:   

When it is a case of adult child then your child cant be covered under your policy, because he is self dependent and can buy a separate policy for himself.

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PostPosted: Thu May 10, 2012 10:25 pm   Post subject:   

Quote:
When it is a case of adult child then your child cant be covered under your policy, because he is self dependent and can buy a separate policy for himself.




Incorrect. Just about every single insurance company will require, on an auto policy, that all "regular use" drivers of a vehicle be named in the policy and an appropriate premium paid. This includes adult children who either live or don't live in the insured household.



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PostPosted: Wed May 16, 2012 7:42 pm   Post subject:   

Quote:
Is it the person that has to be insured, or the vehicle you are driving needs to be insured?




Review your policy.



Quote:
what is the law in Illinois??




Illinois has a statutory requirement for its owners of registered vehicles to maintain a minimum amount of Auto Insurance.



Try to mix yourself and understand these coverages (thought it might help):



Liability Coverage: Will pay the bodily injury for another person or Property Damage when you negligently operate a motor vehicle.



Liability Coverage also pays for the same if an at fault accident is determined to be the fault of a family member or a driver living with you and was using your vehicle with your permission. Liability coverage will pay any legal fees in conjunction with your defense when a legal action is brought against you for an accident which is your fault.



Bodily Injury (BI): Will pay for the costs associated with injury or death to both a pedestrian(s) or individual(s) in another vehicle. Bodily Injury may cover the passengers in your car or truck for the costs of injury when they aren’t members of your household.



Illinois law requires Bodily Injury limits of $20,000 per person per accident and $40,000 total per accident.



Property Damage (PD): Will pay for the cost of damage to a vehicle belonging to the other driver or drivers. It also pays for another person’s property like utility poles, and trees.



Illinois law requires Property Damage liability limits of at least $15,000 per accident.



Uninsured Motorist Bodily Injury Coverage (UM): Will cover you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance.



Illinois law requires uninsured motorist limits of $20,000 per person and $40,000 per accident.



Underinsured Motorist Bodily Injury Insurance (UIM): Pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits.



[Link removed - Admin]
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