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Old 08-04-2008, 07:48 AM
 
97 posts, read 395,055 times
Reputation: 35

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Quote:
Originally Posted by globalnomad View Post
I just told my 15 year old that insurance for 16 year old drivers runs about $4,000 a year.

He replied, "I guess I won't be driving for a few more years!"

If that's really the case, then we won't even bother with the learner's permit or driving school or getting a regular license until he turns 18.
I don't recommend this. Insurance companies rate based on experience. Age plays a major part in theory, but recall that business have to provide service in equal opporunity circumstances - age/sex/religion/etc.

So, experience ratings rate based on time behind the wheel. Premiums will be higher for a 35yo with 2y of experience than a 35yo with 20y of experience. You need to acquire the permit at the earliest opportunity and stuff it in your safe.
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Old 08-04-2008, 03:35 PM
 
Location: Monroe,Ga.
183 posts, read 921,923 times
Reputation: 98
Quote:
Originally Posted by rvbrad View Post
Here's what you do:

1. Buy the kid a cheap car in which liability is all you need.
2. Acquire a SEPARATE policy for you and your spouse ONLY for this car OUTSIDE of the policy you use for your other cars with a DIFFERENT insurance company.
3. Make your child a named driver on the policy. The only named driver.
4. Acquire a $1M umbrella policy from the same insurer naming all of you.

The policy should be cheap. This works - I do it all day/every day.
Regarding #4...since when does an umbrella policy attach to a car insurance policy? Maybe you are talking about million dollar liability? An umbrella policy is on homeowners insurance. And I could be wrong but this sounds a little like fraud! Just sounds really shady to me..
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Old 08-04-2008, 04:45 PM
 
200 posts, read 898,795 times
Reputation: 115
What everyone contributed on this topic has been quite helpful for parents of driving age teens.
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Old 08-04-2008, 07:52 PM
 
97 posts, read 395,055 times
Reputation: 35
Quote:
Originally Posted by rasmom View Post
Regarding #4...since when does an umbrella policy attach to a car insurance policy? Maybe you are talking about million dollar liability? An umbrella policy is on homeowners insurance. And I could be wrong but this sounds a little like fraud! Just sounds really shady to me..
Its not fraud!!!!

The policy will have due purpose to be used for your teenager since they are a named insured with this provider. It has nothing to do with homeowner's insurance. Unbrella policies are available from nearly every type of insurer and are to protect you from litigious circumstances. If you insure yourself with your homeowner's provider but use another insurer for auto coverage and its your child that requires the coverage, the insurer has the right to re-interpret the coverage, the limit, and/or the availability of funds to provide legal representation on his/her behalf.
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Old 08-05-2008, 05:02 AM
 
Location: Monroe,Ga.
183 posts, read 921,923 times
Reputation: 98
Quote:
Originally Posted by rvbrad View Post
Its not fraud!!!!

The policy will have due purpose to be used for your teenager since they are a named insured with this provider. It has nothing to do with homeowner's insurance. Unbrella policies are available from nearly every type of insurer and are to protect you from litigious circumstances. If you insure yourself with your homeowner's provider but use another insurer for auto coverage and its your child that requires the coverage, the insurer has the right to re-interpret the coverage, the limit, and/or the availability of funds to provide legal representation on his/her behalf.
So, if it is not fraud, why not just add them to the parents existing policy? Why a separate company? When it doesn't make sense, it's got an awful sound of not being true, or in this case not being legitimate. So maybe that's why we pay high insurance premiums, because there are cars on the road that are uninsured or carry this type! I wouldn't put my child in this situation that you suggest, nor would I take out a policy that suggests my important asset (my child) be in a car that is unsafe. Unsafe to him and to others on the road. Responsible people don't look for ways to get around doing the right thing. Just my opinion. And again, an umbrella policy attaches to a home, not a car. There have been many cases of people losing their homes due to not having the coverage they should have when an accident happens. As I said before, if you have nothing to lose, go for it! Just let me know when you will be on the road, I'll make sure I stay home that day!
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Old 08-05-2008, 05:04 AM
 
Location: Monroe,Ga.
183 posts, read 921,923 times
Reputation: 98
Quote:
Originally Posted by rvbrad View Post
Its not fraud!!!!

The policy will have due purpose to be used for your teenager since they are a named insured with this provider. It has nothing to do with homeowner's insurance. Unbrella policies are available from nearly every type of insurer and are to protect you from litigious circumstances. If you insure yourself with your homeowner's provider but use another insurer for auto coverage and its your child that requires the coverage, the insurer has the right to re-interpret the coverage, the limit, and/or the availability of funds to provide legal representation on his/her behalf.
By the way, did you mean "Dual" purpose?
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Old 08-05-2008, 06:24 AM
 
Location: FL to GA back to FL
894 posts, read 3,964,111 times
Reputation: 427
We lived in Florida, and moved to GA. We also bought a townhouse in Fl for our son while he attends college. His auto is through our old State Farm agent, his homeowners is through another company. We have added his name to the deed of the property and have been discussing an umbrella policy to protect our assests. I was told that in the state of Fla, umbrella policies are added through the auto insurance not homeowner's.
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Old 08-05-2008, 07:59 AM
 
97 posts, read 395,055 times
Reputation: 35
Quote:
Originally Posted by rasmom View Post
By the way, did you mean "Dual" purpose?
No, due purpose. As in, sole purpose.
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Old 08-05-2008, 08:21 AM
 
97 posts, read 395,055 times
Reputation: 35
Quote:
Originally Posted by rasmom View Post
So, if it is not fraud, why not just add them to the parents existing policy? Why a separate company? When it doesn't make sense, it's got an awful sound of not being true, or in this case not being legitimate. So maybe that's why we pay high insurance premiums, because there are cars on the road that are uninsured or carry this type! I wouldn't put my child in this situation that you suggest, nor would I take out a policy that suggests my important asset (my child) be in a car that is unsafe. Unsafe to him and to others on the road. Responsible people don't look for ways to get around doing the right thing. Just my opinion. And again, an umbrella policy attaches to a home, not a car. There have been many cases of people losing their homes due to not having the coverage they should have when an accident happens. As I said before, if you have nothing to lose, go for it! Just let me know when you will be on the road, I'll make sure I stay home that day!
Well, not to let the cat out of the bag, but I'm a contract economist for insurance companies at the specialty vehicle level (RV, Marine, Motorcycle, Aeronautical). I provide legal consulting for insurance marketing departments as well.

I'm not saying this to just add credibility to my posts, but I have 15 years in the insurance industry and am a Finra licensed broker (although I don't broker insurance prodcts).

Unbrella policies are separate entirely... a completely different entity. You do not have to have a home to have an unbrella policy, what sense does that make? You still suspend yourself in circumstances of liability as a renter, don't you? You do, however, have to have a reason for obtaining the policy. If you have no asset value, you will not receive underwriting for a $1M policy. Regretfully, a $1M gets you only down the street in GA - not over the hill. But, with nothing to protect, you have no need to obtain the policy. Otherwise, sincere moral hazard takes place and insured persons tend to open themselves to actions of fraudulent claims.

You open a policy with a different company for several reasons:

Foremost, you protect your credibility with your primary insurer God forbid a large claim is necessary. Stand aware that if you insure everything with a company and see large claims, they reserve the right to change your coefficient for risk and place you in a different pool, perhaps even cancel some coverage. Try and start over with a CLUE report from an insurer that cancelled you entirely.

Competition is brutal in the insurance market, particularly with auto insurers. Once you approach an insurer with a special need, they'll try and compete to earn your business. Yes, you are approaching them with the least profitable circumstance, but they'll likely approach the deal in hopes of obtaining all of your insurance business.

Legal representation... the most important aspect of coverage (INMO). If you have an auto policy and it covers say 3 drivers, the policy has a net value and gross cap for legal expenses (this is all an internal figure to the insurer). You take the total amount and divide it by 3 drivers. If you have a policy with 1 driver, the policy has a net value that is likely lower, but the gross for representation is 100%. This amount I guarantee is higher than the other. Trust me - settlements exist for a reason.

FYI - people lose there homes when they have large judgements against them, insufficient insurance coverage, and a material asset with value. The unbrella policy, again, has nothing to do with the home. The home simply offers huge asset value to a family. The largest purchase to most people is their primary home. Think about this - do you think most small business owners purchase unbrella policies from their primary homeowner's provider? Nada.

I can definitely explain further here, if you'd like. But shoot it to me in a PM. The next step is to become fairly graphic - legally. And I don't want to become that guy on this forum.
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Old 01-21-2009, 07:46 PM
 
Location: Marietta GA
14 posts, read 31,214 times
Reputation: 10
Quote:
Originally Posted by rasmom View Post
Regarding #4...since when does an umbrella policy attach to a car insurance policy? Maybe you are talking about million dollar liability? An umbrella policy is on homeowners insurance. And I could be wrong but this sounds a little like fraud! Just sounds really shady to me..
Umbrella coverage covers any liability... home or auto.
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