If you raised a Teenager you know the pattern all too well. Your child suddenly reaches the age when he can finally get a learner’s permit to start driving. After one or a few of tries, he passes the driving test and gets his life altering ID his drivers license. After he tries to get a Discount Auto Insurance policy on his own and discovers he can’t afford it. You open your pockets and tell your insurer about your enthusiastic new driver. Your auto insurance policy will cover him throughout high school, when he graduates and goes to college, and while he’s back home. At some point, he becomes a man and moves out on his own for good. Maybe he moves to a city with a good transit system, and his 1st job doesn’t pay enough for him to pay for everything and still afford a vehicle in the city. So for a while he decides to live without one.
One day, finally he gets the courage up to ask out that girl in the finance department he’s been flirting with. Meeting her at the local deli just won’t fly, so he begs his new best friend to borrow his car. The friend, agrees to lend him the car if he puts gas in it and gives him money for a pizza. Your young Don Wan picks up his date, pulls out onto busy City Dr, and wham rear-ends a Mercedes. Confused, he throws the automobile into reverse and smacks into the Jaguar behind him. Two questions blow up in his head: 1) Is she going to go home? and 2) Does his friend have automobile insurance to cover his exciting first date with dream girl accountant?
Bad news for your Don Wan: The girl grabs a cab and his friend missed his last insurance installment; the policy gets canceled for failure to make payment. Then a light bulb turns on: Am I still on Mom and Dad’s auto insurance. Just maybe their insurance policy will cover the repairs.
Each insurance policy has a specific descriptions of who is included in the policy. The standard Personal Auto Policy published by the Insurance Services Office states that the 1st named insured on the policy and “family members” have coverage for the ownership, maintenance or use of any car. Maybe Don Wan got lucky. Or maybe not.
All car insurance policies also have a specific definition for the term, “family member:” A individual that is related to the first named insured on the car policy. The family member must be related by marriage, blood or adoption and must also live in the 1st named insured primary home. Young Don Wan left your residence, which is when he began his career, met his dream girl, and borrowed his new friends uninsured car.
In 1975 a California court came to a decision on a similar case where an adult son who lived in a separate residence from his parents but on the same street and relied on them for financial support was not considered a resident of the their home and therefor wasn’t covered under their automobile insurance policy.
There are exceptions to these rules. Courts have recognized that college students, although they live at college, are still considered residents of their parents home. Even a self-supporting child who still lives with you but pays rent to you will also qualify as a resident usually up until the age of 25.
It’s when they permanently move away from home that the break in coverage will occur. Even if your child doesn’t own a car, they should consider getting Free Insurance Quotes for a Names Non-Owner car policy. This will cover there liability for injuries or damage that may occur while renting or borrowing a vehicle.
And, although your Don Wans’ date most likely would have ended anyway, it would have saved him a huge headache and a lot of money.
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