As parents, we track our kid’s milestones from when they are infants up to being grown. Some of the milestones we jot down in memory books, others we hold close to our hearts. We remember how much they weighed at birth, their first word, when they lost their first tooth, we take pictures of their first day of school, and so much more. As they get older, we remember when our “babies” got their license, when they got their braces on, when they got their braces off, and then soon it’s graduation day.
BUT, there is no good milestone on when to take your kids off your auto insurance! No magical age that says it’s time to be responsible for their own auto insurance.
If _______ Then take them off your auto policy.
Let’s look at things to fill in the blank:
- Has his/her apartment: Little Johnny or Susie isn’t going back and forth between their college dorm and home anymore, they have moved out. Most apartment complexes require renters insurance since they are getting that policy anyways bundle their renters with their auto policy. Why? Their vehicle will no longer be housed at your address like you said it was on your application. They will no longer be in your household like you said in your application. Bundling policies with the same carrier usually offers discounts. Also, a claim could be denied since circumstances had changed, and you didn’t notify the company.
- Move out of state: If your kid moves out of state, then take them off your auto policy. For instance, if after graduation, your children lands that great new job in Colorado, then it’s time to seek out an agent in Colorado. Why? These answers sound repetitive; their vehicle will no longer be housed at your address like you said it was on your application. They will no longer be in your household like you said in your application. Insurance regulations differ from state to state, so why wouldn’t you want to comply?
- Purchased own car: The time came to trade in their high school car for a new vehicle. Titling the vehicle in their name brings a new level of care and responsibility. It’s time for your child, your grown child, to start their own auto policy. Why? This car cannot be on mom and dad’s policy anymore because they don’t have “insurable interest.” That just means mom and dad don’t have an interest in what happens to the vehicle; the child does because they are the owner.
Cut the Excuses
Now there are a lot of objections that we hear about this topic. We get it! You want to help your child because they are just getting started and it’s expensive on your own, who wouldn’t. However, what is more important – Being correctly insured at claim time or convenience?
We are all adults here; let’s think about other ways to teach responsibility to our kids that are just stepping out on their own.
- Advise them: Share what you know, newer cars are more expensive to insure. If you have a loan, then you are most likely required to carry “Comprehension” and “Collision” coverage, which adds up. If you don’t have a loan, you have more wiggle room to customize your coverage. Remind them that responsible driving pays off; road violations can affect your insurance (speeding tickets, DWI, failure to yield, etc.). These are seen as negative risk factors and raise rates.
- Send them in to talk with an Insurance Adviser: We can explain “deductibles,” “comprehensive coverage,” “collision coverage,” “liability,” “medpay,” and “premiums.” These all may be foreign terms to your emerging adult. We can explain them and help fine-tune policy needs to indeed suite their needs. Their needs may look a little different than mom’s and dad’s, so let sit and talk about it.
- Payments: Yes, a policy on their own may be expensive. Work out a payment plan with them, allowing them to be adequately insured but with some financial relief. Online accounts make it easy to make payments nowadays, so utilize the tools available for you.
Wrapping it Up
To sum this all up, you signed an application stating things are a certain way in your house. Those parameters change from time to time, but it is your responsibility to notify us of changes. We reach out to you at renewals as a reminder to make sure you are properly covered.
However, if your family is noticing one of these triggers then give us a call and let’s talk. We don’t like the conversations about a denied claim or getting canceled because your policy doesn’t adequately represent your circumstances.
We are your team
We are here as your family’s resource. We are connected with Independent Insurance Agents all over the country and can find an agent if your child needs one outside of Indiana.
Let’s talk about your needs. Schedule an appointment to come in and talk or call us to discuss your specific policy over the phone. 317-867-5433 or Info@insurewithdean.com