Car Insurance

luv2swim

luv2swim

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I'm probably getting a little ahead of things, but like everyone I'm looking to cut unnecessary costs down the line...

If DS goes off to an SA where he can't have a car, he still will need to be insured to drive while on leave or summers, or maybe at some other time...are there special deals out there for military that would apply for cadets? What have others done about this? Also, do they ever drive military vehicles for any reason as cadets and would they need insurance to do so? Do they need some kind of renter's insurance as students living in a dorm?

Thanks to all who can help explain things - I am clueless about the military...
 
I asked my insurance agent about this and they said to call them when my son leaves for the academy. They will then mark him as "away at school" and a reduction in the premium would apply. He would still be able to drive when he is home and be fully covered. Hope this helps.
 
luv2swim said:
I'm probably getting a little ahead of things, but like everyone I'm looking to cut unnecessary costs down the line...

If DS goes off to an SA where he can't have a car, he still will need to be insured to drive while on leave or summers, or maybe at some other time...are there special deals out there for military that would apply for cadets? What have others done about this? Also, do they ever drive military vehicles for any reason as cadets and would they need insurance to do so? Do they need some kind of renter's insurance as students living in a dorm?

Thanks to all who can help explain things - I am clueless about the military...
Click to expand...

If they drive a government vehicle they will be covered.... I found this on the USMMA site:

Car Insurance: Check w/ your carrier to determine reduced rates. If your carrier is USAA, they will cover your student at no charge while at the academy provided you list him/her as a non-operator. When contacting USAA for this coverage, inform the USAA service representative that the U.S. Merchant Marine Academy is listed within IOP as one of the qualifying military schools.
 
WRT note on this carrier, "non-op" means yes, mids/cadets are covered while home on leave, and you are not charged a premium. Check with the company to get full details.

Some insurance companies will give an "away at school" discount.

Maintaining a "B" average or better can also help.

If they have to drive a military vehicle, say, they are a manager for a sports team and are driving one of the military vans on a road trip, they are covered by the government. Duty status, official business, etc.
 
We have some friends whose insurance agent has them to NEVER list their kids on their insurance. They have 5 kids, youngest is 20. And they have had the usual amount of fender benders, etc. Supposedly, if your kiddo is driving a vehicle you own, they are like anyone else who might have your permission to drive that vehicle and as such are covered under your insurance.

We plan to check this out. However, what incentive would your insurance agent have to say "No, don't list them!" Of course, the agent is going to want you to list those high premium teenagers!

Anyway, we were thinking of taking son off entirely, then not listing his 14 y-o sister when she becomes "of age."

Anybody have any thoughts?
 
We removed our cadet completely from our auto insurance policy when he left for the Academy. He took out his own "non-owner" auto policy for $225/yr. The reason to do this is that most of the cadets (at USAFA, anyway) will borrow cars from upperclassmen during their first and second years at the Academy. Having your own policy to cover any deductibles, or an uninsured vehicle that you are driving is a good peace of mind. The cost was much cheaper than leaving him on our policy, even if he was listed as "away at school".

The idea of never listing your kids on an auto policy is really not a good idea. When you fill out an application for insurance, you are asked to list all licensed drivers in the household. The application will also state that you must notify the insurance company of any changes in drivers of the insured vehicles. You sign and date the application, and that is an acknowledgement that you understand the policy. To have kids in the household who drive, and not have them listed on the policy is against the agreement that you have with the insurance company. I really don't know how anyone would get away with this after the first fender-bender. If it were really that easy, I think everyone would do it. I know I would have saved thousands of dollars.

Stealth_81
 
auto insurance

In our current economy saving money is always a good thing. Insurance coverage may not be the best place to make big cuts. You pay for the insurance because the odds are that one day you will need to use it. If your son or daughter is injured in an accident, regardless of fault, you want them to have coverage. Health insurance is not enough. If they injure someone else, I believe you have a moral obligation to help make that person whole again. If your son or daughter is home on leave from the Academy/ROTC, has an accident and is injured, you do not want to be in the position of not having adequate coverage. Frequently, other drivers are under-insured or uninsured. State laws can vary on "household exclusion"-where a parent does not include all people living in their house on the same policy. Ask your insurance agent. Your policy may come into effect if your student is injured as a passenger in someone else's car. ..... okay, off my soap box. Nope, I don't sell car insurance but I do work in a law firm and see the tragedy of under-insured and uninsured accidents too many times. No one thinks it will happen to them. .....
 
We have actually had two accidents caused by uninsured drivers and understand the heartache associated with all of that.

I guess I was just wondering if we had been blindly paying insurance all these years when some, maybe even many, people do not do so on their teens. We are probably accused of being "overly cautious" in most situations. I was just wondering if anyone else had heard of NOT covering their kids!
 
Unless your policy specifically names the child as an excluded driver, they are automatically covered. This can vary between companies but most companies make you sign a statement that acknowledges you are aware your child is excluded.
 
luv2swim said:
If DS goes off to an SA where he can't have a car, he still will need to be insured to drive while on leave or summers, or maybe at some other time...are there special deals out there for military that would apply for cadets?
Click to expand...

Have your DS contact USAA for his insurance. As a cadet (for crying out loud, a CADET?), he is elegible for membership, and their rates simply CANNOT be beat.

I wish I'd gone with them as far back as 1990. Instead, I joined them in 1996. Best move I ever made. :smile:
 
I started digging around online - USAA has tons of other services including banking, credit card, loans, etc. and free ATM worldwide. Comments about it are very positive - thanks for the tip :):thumb:
 
My Mid uses USAA exclusively. Can not beat the car and renters insurance rates. Second Class loan rate was also very favorable.
 
luv2swim said:
I started digging around online - USAA has tons of other services including banking, credit card, loans, etc. and free ATM worldwide. Comments about it are very positive - thanks for the tip :):thumb:
Click to expand...

My pleasure.

Almost my entire financial life is through them. Simply can't be beat. :thumb:
 
Echoing comments from above - One benefit a graduate can take advantage of is getting insurance from USAA. They cater exclusively to military people. Great service and great rates are their hallmarks. It's great when someone calls or tells me they can save me $$$ on insurance. I tell them I have USAA and it takes the wind out of their sails!
 
We have a son that is in Boston for college. The first year we had him as "away at school". We paid hundreds of dollars for him to not drive. Then this year we excluded him while he was away. The when he came home we added him for the month during Christmas break. It was a little more expensive for that month than the usual monthly payment. But it was only for one month. We save around $700 by doing it that way. He was under strict orders not to drive anyone's car. Then he did. But he checked with the owners insurance and he was covered as long as he had permission. I am sure all companies operate a bit differently, so just check with yours.
 
My mom contacted her insrance company (which I was covered before going in the USAFA Prep School) and they said I was covered if I drove her car and didn't reside with her for more than 30 days. Like it was said before, it really depends on the insurance company. Her insurance company is AAA. For me on the other hand, I picked up a "Liability only" insurance from USAA for about $20/month just so I save money on car rental insurance and jsut so I have a car insurance if I drive someone else's car.
 
Auto insurance/cadets and midshipman

Recommend a search on other threads -- we had a good round of posts on auto insurance scenarios within the last few months.
 
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