Car Insurance?

Discussion in 'Service Academy Parents' started by educ8, Apr 22, 2013.

  1. educ8

    educ8 Member

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    Our son was accepted to USMAPS and will start in July. We just bought a new car this past Saturday (to drive the 8 hours to WP!). So, I called the insurance guy today and while processing the info for the new car I casually asked about dropping our son from our car insurance because he would only be home for a few weeks per year for the next five years. The insurance guy said that while I could drop him, it would end up costing our son much more when he contracted for car insurance in the future because he would then have a "gap in coverage."

    Does this sound right, or is my insurance guy just trying to milk me for 5 years worth of expensive "young person" insurance that I don't really need?

    What is your experience?:confused:
     
  2. Pima

    Pima Parent

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    We have USAA. They have a policy for college students that live more than 70 miles away. They are never dropped, they become a part time driver college student.

    You might want to see if they have a program like this.
     
  3. burnerafter16

    burnerafter16 Member

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    I'm not sure when they let cadets have their own cars at WP but at USAFA, it's on their 3rd year or when they're C2Cs. This is not an endorsement but AAA allows us to have my DS in our policy only when he's home. It takes a trip to the AAA office each time we add him and take him off but it sure beats paying up the nose for the time he's not at home. The only issue I can think of is if upperclassmen lend their cars in exchange for a full tank of gas-then your cadet may still need coverage just in case. I have just advised my DS to wait until he's C2C, then he can bring his own car.
     
  4. Luigi59

    Luigi59 Banned

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    If they are away at college, you can remove them as a member of the household, and your rate should drop.

    When they return on leave/liberty and they drive your car, they will be automatically covered, as is anyone who you give permission.

    Auto insurance insures the vehicle, not the driver.

    We dropped our son from our policy (State Farm) the day he left for the academy (saved a bunch) and the vehicles were fully covered each and every time he came home and drove one of the cars.

    When he bought his own car in his 2/c year, he had no problems--zero-none-nada--getting new insurance in his own name on his own vehicle through USAA, no questions asked about any "lapse" in coverage.

    If your son borrows someone else's car and has an accident, it is the vehicle owner's insurance that will cover it, not yours--as I said above, insurance covers the vehicle, not the driver.
     
  5. Stealth_81

    Stealth_81 Super Moderator Moderator Founding Member

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    We did the same as Luigi. We dropped our son completely from our coverage and then when he bought his truck USAA insured him for a lot less than we could have.

    Stealth_81
     
  6. burnerafter16

    burnerafter16 Member

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    I'm not too sure about automatic coverage?
    In our case, there's a form to be signed to exclude DS from being an authorized driver. Meaning, the insurance company won't be liable if an uninsured(excluded/unauthorized) driver causes an accident. You also have to consider not just your vehicle but a 2nd or 3rd party's vehicle and occupants.
    If it were as simple as saying mr X is covered because I authorized him, insurance companies might not agree.
    Just think of how they ask who will drive when you rent a car?
    If something happens and the driver wasn't the authorized driver, who will the insurance co go after?
     
  7. mom3boys

    mom3boys Parent

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    Ditto Luigi and Stealth...no problem when he got his car cow year and insured via USAA. We had State Farm at the time.
     
  8. Luigi59

    Luigi59 Banned

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    Google the terms "omnibus clause" and "permissive use."

    Remember - insurance laws can vary from state to state, even with the same company.
     
  9. burnerafter16

    burnerafter16 Member

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    I agree with the USAA insurance route when a cadet is allowed to bring their own vehicle.

    Once again, my question pertains to the 4th and 3rd class cadets at least in Colorado or when they are home on leave.
    If you state with your insurance that you are dropping coverage for your son or daughter to save on premium. How are they to proceed if the excluded driver is in an accident?
    If they get pulled over by highway patrol or local police, what proof of financial liability or insurance do they show if they're driving a borrowed car?
    God forbid they get into a fender bender or something more-who is liable? The registered owner of a vehicle or the driver at the time of accident?

    Taken from DMV CO

    Penalties for Failure to Maintain Financial Responsibility


    Driving with no proof of insurance is considered a misdemeanor and comes with the following penalties:

    First offense―A minimum fine of $500, four points added to your driving record, and possible suspension.
    Second offense―A minimum fine of $1,000 and a four-month suspension.
    Third offense―A minimum fine of $1,000, community service, and an eight-month suspension.

    My insurance caveat:

    Get on your parents’ policy.
    It’s usually cheaper to add a teenager to their parents’ policy, rather than be insured separately. Most companies won’t charge an additional premium until the teen is a licensed driver. Parents need to inform their insurance agent or company that their teenager is being added to the policy. Deliberate concealment could impact coverage.
     
  10. Blackbird

    Blackbird Parent

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    We also have USAA and dropped DS from our policy when he left for USAFA. As has been said, our insurance covers him when he uses one of our vehicles. However, he also has his own non-owner's USAA insurance policy that provides him with liability coverage should he borrow a car (which has done many times already as a C4C) and have bodily injury and/or property damages to someone else's property or body that exceed the coverage on the borrowed car. The minimum level of auto insurance required by law is very low in many states and the driver is responsible for damages that exceed the policy coverage. Our auto insurance bill dropped significantly with him off of it and the non-owners policy is relatively inexpensive but provides that all important liability coverage.
     
  11. Packer

    Packer Member

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    The card that better be in the glove box.
     
  12. Luigi59

    Luigi59 Banned

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    Auto insurance insures the vehicle, not the driver. They should have a copy of the card or certificate int he vehicle at all times, regardless of who is driving.

    If they are at fault (and had permission of the owner) then the owner of the vehicle is liable. If the other car is at fault, the other owner is liable.
     
  13. Blackbird

    Blackbird Parent

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    Really. Do you honestly believe that a driver of someone else's car has no liability if they are at fault in an accident in the US? Sure the insurance policy on the car will cover liabilities up the policy limits, but after the limits are reached the driver will have exposure to any remaining liabilities.
     
  14. Luigi59

    Luigi59 Banned

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    Up to the policy liability limits, the vehicle owner is the only one responsible.

    If the other driver has insurance, sure. But that is not often the case with people who do not own cars. Why have car insurance if you don't own a car? In those cases, the vehicle owner is 100% liable for the damages caused by someone else driving their car with their permission.

     
  15. KateMac

    KateMac Member

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    My two cents . . . when my DD went to WP I just called my insurance agent and explained to him what was going on. He "worked his magic" and did whatever was required in our state. I don't know if she was insured under a college plan or was totally dropped and when she was home was treated as a guest. The defining factor appeared to be that we no longer claimed her on taxes, in which case she was no longer a dependent and would be no different than dear Aunt Martha or Cousin Bubba who came to visit and borrowed the car. And since we have been with him for years we trust his judgement and were relatively confident he would look out for our best interests.

    Now, when she did take a car to school we also informed our friendly agent and requested triple the liability coverage on the car as it was still in our name. We did this because Cadets loan their car out to friends from time to time. I explained this to our agent and let him know that I was relatively certain there would be other folks driving the car. The cost of the additional coverage was minimal and, as far as I was concerned, was worth my peace of mind.

    Once she left school and put the car in her name, she was on her own.
     
  16. dohdean

    dohdean Member

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    A slightly different take on this discussion. We have kept our DD on our auto insurance policy throughout her time at USAFA. She has had her own car at the Academy since C2C year. By staying on our policy, she has received the benefit of our multi-car discount and the discount we received for having cars, home, etc. all on one policy. The cost of her insurance has been cheaper than what USAA quoted her for her own policy. This worked for us because all of our family coverages are with the same company; might not work for someone else.
     
  17. dohdean

    dohdean Member

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    One other thing. As noted on many of these posts, cadets loan out their cars. This can be a real liability issue for the owner of the vehicle. As parents, bearing the responsibily both legally and under our insurance for a loaned vehicle, we explained the legal consequences to our daughter and asked her not to loan her vehicle (which is in my and my husband's names at this point). My husband and I are both lawyers. As a result, our daughter has heard plenty of horror stories about unexpected liabilities. Again, this is a family decision. But college students (at any college) don't always understand these liability issues and they differ from state to state. We also carry an umbrella policy providing plenty of uninsured and underinsured motorist coverage -- which also carries over to our daughter's car -- as in Colorado there are many underinsured and uninsured drivers. That extra protection gives us additional protection in the event one of us is hit by an uninsured or underinsured driver resulting in serious injuries or death to someone in our family.
     
  18. burnerafter16

    burnerafter16 Member

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    Assuming coverage by some "omnibus clause" is just too risky. Our insurance company specifically stated on paper that by dropping our son from our policy excluded him from coverage reducing the premium but they are more than willing to add him back in on a per diem rate when he's home on leave. Thank you for clarifying the issue of coverage and liability when borrowing or lending a car.:thumb:
     
  19. burnerafter16

    burnerafter16 Member

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    With cadet vehicles in mind. Is it better to bring a vehicle from your home state or just acquire one that will be registered to the SA's address? Wondering if there's any difference in insurance or car registration rates for those that have cadets with vehicles already, I'd appreciate any advise? Thanks.
     
  20. AF6872

    AF6872 Member

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    Friend of mine told me this story:

    Daughter went to a High School party. Calls my friend in the middle of the night and tells him "the car was totaled but don't worry I wasn't in it." Insurance nightmare. It was the last one in the driveway so she gave the keys to someone going to the store for more supplies. No serious injuries.
     

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