Teen auto insurance

One of my insured has a teen driver in the household with some major driving issues, including three at-fault accidents during the past year and two speeding tickets. We are now excluding the teen driver from the family auto policy that covers the insured, his wife, and another child at college. To avoid having the family policy and umbrella non-renewed, the teen driver now has a stand alone policy with a captive insurer which priced the teen driver policy at $7,000/year for liability only. They were our only market to even quote.

Here’s the issue…the auto the teen drives is still titled in the insured’s name. If the teen driver is involved in a catastrophic accident: 1) Would the family policy provide defense if my insured is named in a suit since he is on the title; 2) If we titled the car in the teen’s name, would that take care of the issue?

In my opinion, since the teen driver is specifically excluded via endorsement, there would be no coverage under the auto policy in case of an accident. The umbrella would follow form and exclude coverage as well. Therefore, my client is assuming an uninsured risk, and a big one at that. My client has very deep pockets, and is leaving himself open to some major potential issues. Depending on how a claim would be handled against my insured, perhaps the homeowners would even pick it up if there were some sort of vicarious liability for allowing the teen to continue driving?

On a side note, my first and strongest recommendation was to have the teen driver turn in his drivers license to the state and sell his car. However, he attends a private school with no public transportation, so someone would have to transport him everyday. Supposedly, he is only allowed to drive the car to and from school, but what 17 year old listens to such rules? Now, I can only advise how my client can cover his own liability, if it’s possible.
jimmy

Personal Auto insurance

Response : Jimmy, you are absolutely right – let me clarify your own doubts :
1) Rule number one in personal insurance is that the insurance- coverage follows the vehicle.
2) The teenager is still not an adult and so legally the parents are responsible for him and just by shifting the title of the car in his name will not relieve the responsiblity of the parents.
3) By just putting an exclusion on the policy would not relieve the insurer also since the exclusions are always narrowly taken- while the coverages are broadly reviewed in the court of law.

The parents of the teen would face problems if the teenager would get into a serious accident. Here are my suggestions:
1) Get a personal umberella coverage for the teenager also.
2) Enroll the teenager in a driving school. It would be best to talk to him, he may be nervous or strained whilst driving and so the accidents occurr. If he is nervous it would be best for him not to drive.
3) For getting cheap auto insurance quotes you can shop online. However, if the driving record is bad it would be difficult.
Thanks.
Kamlesh.

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Teen auto insurance

Teen auto insurance

Michael : I am teenager and am looking for car insurance discounts. Please help me.

Auto insurance discounts for best car insurance rates.
Response : The auto insurance discounts that would be given by the insurance company and the percentage of discount applicable would differ from insurance company to company.  Here are a few discounts that are normally given to the teenagers on their  auto insurance policies:

1. Driver training discount given for young drivers who have completed divers training.
2. Good student discount is given to students who have good grades tend to be good drivers, however this discount is limited to high school or full-time college student. This discount is applicable only as long as they are maintaining the required grads.
3. Non-smoker or non-drinker discount are becoming increasing popular. The non-drinker is a low hazard risk for the insurer, however this is not offered by all insurers. 
4. For safety devices like air-bags which help in preventing the severity of injury
5. Anti-theft devices – which will prevent car from getting stolen.
6. Resident student discount is offered if there is one vheicle in the family and the student is a resident student living at least 100 miles away from home.
7. Multi-car discount when you are insuring two or more cars with the same insurer.
8. Multiple policy discount when you have more than one coverage with a insurance company like auto, home life, health.
9. Commuter or car pools – If you drive just a few miles and take public transportation.
10. Mileage discount is also offered if the use of mileage of your automobile is less .

Check if you qualify for any of the discounts and even if you qualify for five of the discounts you will get the best car insurnace rates. Compare teen auto inusrance online to get the cheap car insurance rates now.

God bless

Kamlesh

Teen auto insurance