If you raised any children into young adulthood you know the pattern all too well. Your child suddenly reaches the age when he can finally get a learners permit to start driving. After one or a few of tries, he passes the driving test and gets his life altering ID his drivers license. After he tries to get a Discount Auto Insurance policy on his own and realizes he cant afford it. You decide to pay and tell your insurer about your enthusiastic new driver. Your vehicle insurance policy will include him throughout high school, when he graduates and goes to college, and while hes back home. At some point, he becomes all grown up and moves out on his own for good. Maybe he moves to a city with good public transit, and his 1st job doesnt pay enough for him to pay all his bills and still afford a car in the city. So for a while he decides to live without one.
One day, he finally gets the courage up to ask out that girl in the accounting hes been flirting with. Meeting her at the local pizza place just wont fly, so he begs his new best friend to borrow his vehicle. The friend, agrees to lend him the car if he puts gas in it and gives him money for a pizza. Your young Don Wan picks up his date, pulls out onto busy First St, and pow rear-ends a Mercedes. Confused, he throws the car into reverse and blasts into the Saab behind him. Two questions engulf his mind: 1) Is the date over? and 2) Does his old-new best friend have car insurance to cover his exciting first date with dream girl accountant?
Bad news for your Don Wan: The girl hops in a taxi and his friend missed his last insurance installment; the policy lapsed for failure to pay. Then a light bulb turns on: It wasnt that long ago Mom and Dads insurance covered me. Just maybe their insurance policy will cover the repairs.
Each insurance policy has a specific descriptions of who is cover under the policy. The standard Personal Auto Policy published by the Insurance Services Office states that the first named insured on the policy and family members have coverage for the ownership, maintenance or use of any automobile. Maybe Don Wan got lucky. Or maybe not.
All car insurance policies also have a specific definition for the term, family member: A individual that is related to the 1st named insured on the vehicle policy. The family member has to be related by marriage, blood or adoption and must also live in the first named insured primary home. Young Don Wan left your residence, which is when he began his career, met his dream girl, and borrowed his new friends uninsured car.
In 1975 a California court came to a decision on a similar case where an adult son who lived in a separate house from his parents but on the same street and relied on them for financial support was not considered a resident of the their household and therefor wasnt covered under their automobile insurance policy.
There are exceptions to these rules. Courts have recognized that college students, although they live at college, are still considered residents of their parents home. Even a self-supporting child who still lives in your home but pays you rent will also qualify as a resident usually up until the age of 25.
Its when they permanently move away from home that the break in coverage will occur. Even if your child doesnt own a automobile, they should consider getting Free Insurance Quotes for a Names Non-Owner car policy. This will protect them for injuries or damage that may occur while renting or borrowing a automobile.
And, although your Don Wans date most likely would have ended anyway, it would have saved him a huge headache and a lot of money.
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