Why Put Your Child on Your Policy?

[VolAgent]

We just paid a huge claim on a 17 year old driver listed on the policy. We paid the max BI on auto and since the guy that was hit was young and healthy and now will be hospitalized the rest of his life, I expect the father will get sued and we will pay out the max on liability on home too. Fingers crossed it's enough to make them go away and he gets to keep his home and assets but who knows? If that driver wasn't listed...he for sure would be in a world of hurt. The child is now 18 and far away at college and excluded and because he did everything right, he hasn't been dropped.

You just got your story on why to sell everyone an umbrella if at all possible. While it wouldn't change the injured young man's situation. A few hundred a year for another million in coverage would make a world of difference to his and the other family's financial situations.

 

[mplsmm]

You just got your story on why to sell everyone an umbrella if at all possible. While it wouldn't change the injured young man's situation. A few hundred a year for another million in coverage would make a world of difference to his and the other family's financial situations.

For sure!! The odd thing was he didn't really know much. He had just called to say the daughter was at college. He knew she hit a guy on a motorcycle and saw a small collision claim but had no clue we had written a huge check already and that was just the tip of the iceberg. The claims adjuster told me that a lifetime guardian had been appointed so she expected numbers to climb. But since auto was exhausted, we were done for now. She assumed the lawsuit was coming.
I also just had a talk with a client who's dad caused 500k+ in property damage in an auto accident. He pulled in front of a semi carrying a load of prized steers. It flipped, totaled the truck and killed all of the steers. It was a nice truck and those were expensive cows!!

 

[RickGerlock]

I posed this question to many auto agents. I've been insured with a large auto company for 25 yrs. I insured my first kid but not my second. Every agent told me the car is covered period. 6 weeks ago my son totaled my car and did big damage to the other car. A total of $25k of damage. The insurance company never once asked me why my child was not insured and paid the claim flawlessly.Its my first claim in 25 yrs. So why insure your child?

Most companies will send a letter out at some point letting the insured know there is a uninsured driver in the house and they need to add them or show proof they have insurance or risk cancellation

 

[mattupthehill]

He drops the mic...

Great examples of what can happen when you cross that line into the fraud-zone.

I know plenty of companies that would pursue you for material misrepresentation & deny that claim. The fact you had your 1st kid on at one time & then not the 2nd would bury you in the eyes of SIU. I have seen it happen on more then 1 occasion. I would say 80% of carriers would just pay the claim. But really, what insurance professional is compromising their license & family's financial peace by trying to save a few bucks? I mean....really...cmon.

I have also seen a situation where your kid at college is using your vehicle (but he's not listed on the policy.) Your kid (for whatever reason) one day has his buddy drive them home from where they're at. His buddy as an accident w/ your vehicle. Your carrier denies the claim because your kid wasn't listed on the policy & didn't have the ability to exercise the permissive use extension.

I've also seen a kid hit by a drunk driver at college while walking & suffer substantial permanent injuries. The kid was not listed as a driver & they pursued UM for the kid. Safeco dragged it through litigation ultimately buried them where their attorney gave up on it. Maybe if they had an attorney with a bigger law firm in a major metropolitan city with deep pockets they could have prevailed.

The was a 500k + claim. The kid is permanently disabled. It's sufficient to say all their lives are forever changed for the worse.

Years ago i would say "ya know what...it really doesn't matter." But through my years of experience & seeing the worst case scenarios happen....it's not worth saving the few $'s per month to risk it.

 

[bobson]

We just paid a huge claim on a 17 year old driver listed on the policy. We paid the max BI on auto and since the guy that was hit was young and healthy and now will be hospitalized the rest of his life, I expect the father will get sued and we will pay out the max on liability on home too. Fingers crossed it's enough to make them go away and he gets to keep his home and assets but who knows? If that driver wasn't listed...he for sure would be in a world of hurt. The child is now 18 and far away at college and excluded and because he did everything right, he hasn't been dropped.

Why would the homeowners liability pay out at all?

 

[mplsmm]

The dad will get sued. She was a minor, he is responsible. Any half decent attorney would get as much as possible. Millions of damages, who knows how much they will take and for how long.

----------

There are a few more issues in this case that don't really just make it a straight auto accident, there are some prior things with the incident so its a odd incident and probably not a good example..lol