Who can be held legally responsible if the pizza delivery guy trips over your bicycle and is injured in the entranceway of your apartment?
1. You
2. Your landlord
3. The pizza business
4. The bicycle manufacturer
You are responsible for reparations to anyone who is injured by you or your belongings if that injury takes place on your property, even when you're renting. Reparations can include paying for the injured party's medical bills and loss of income.
You'll also have to pay to defend yourself against a lawsuit resulting from damages suffered by others on your property or for which you may be responsible. Your landlord only is responsible for damage to the building orfor damages that are a result of his/her negligence - not for protecting your belongings or defending you against liability.
Don't think your belongings are worth enough to insure? Even the tiniest studio apartment can hold thousands of dollar's worth of personal property. Renters insurance is one of the most overlooked and inexpensive forms of insurance.
Source: www.iiaba.net
Sep 6, 2008
Need a better insurance rate?
Ready to start saving some money? Resolve to let LBI quote your insurance TODAY to see if we can help you save those pennies for your GAS TANK and your grocery bill!
Got five minutes? That's all it takes to get us the information we need to quote your personal insurance....probably less than that!
1.) You already know your address & whether your home is brick or frame whether or not you have a dog, trampoline or swimming pool, home business....
2.) Gather all DRIVER'S LICENSE NUMBERS and DATES OF BIRTH for all residents of driving age
3.) Go out to each vehicle, jot down the 17 digit VIN Number off the windshield (or grab the auto ID card)- and VIOLA, you are well on your way to a quote!
CALL 812.475-9801 to report your findings from 1, 2, & 3 and we can do the shopping for you! You deserve the best coverage at a price you can afford, call today or email your quote request to info@lynnbrookeins.com.
Only need auto coverage? Visit our website and put in all the information under "get a quote", let us do the rest!
www.lynnbrookeins.com
Got five minutes? That's all it takes to get us the information we need to quote your personal insurance....probably less than that!
1.) You already know your address & whether your home is brick or frame whether or not you have a dog, trampoline or swimming pool, home business....
2.) Gather all DRIVER'S LICENSE NUMBERS and DATES OF BIRTH for all residents of driving age
3.) Go out to each vehicle, jot down the 17 digit VIN Number off the windshield (or grab the auto ID card)- and VIOLA, you are well on your way to a quote!
CALL 812.475-9801 to report your findings from 1, 2, & 3 and we can do the shopping for you! You deserve the best coverage at a price you can afford, call today or email your quote request to info@lynnbrookeins.com.
Only need auto coverage? Visit our website and put in all the information under "get a quote", let us do the rest!
www.lynnbrookeins.com
How much should your home be insured for?
MARKET VALUE - the price a property can realistically sell for, based upon other property sales in the same area.
REPLACEMENT COST - the cost to reconstruct a home with all of its unique features in today's marketplace, using materials and craftsmanship of similar quality.
Is the amount of property insurance on your home correct? What is the appropriate amount of coverage for your home? To begin with, it should be insured for at least 80 percent of its replacement cost when covered under a standard homeowners policy. Replacement cost refers to the amount necessary to repair or replace damaged building parts with items of like kind and quality. Some insurance companies even require 90 percent or higher figures when the guaranteed replacement cost option is offered.
With this option, the policy pays the full cost of replacing your home, without any depreciation and often without a maximum reconstruction payment. (This gives you added protection if there is a sudden jump in construction costs due to a major shortage of certain building materials. Construction costs often "surge" following large catastrophes, such as tornadoes or floods.) Note that guaranteed replacement cost coverage approaches can vary by state and are not even available in every state.
Many homes are either underinsured or overinsured. For example, some homes insured for long periods of time with one insurance company may have inadequate limits of insurance due to increased building costs. In many cases, homes have been remodeled and improved, and this information has not been conveyed to the insurance agent or company, resulting in severe underinsured home values. If your home is underinsured, you not only have inadequate protection for total losses, but you may also lack full protection for smaller losses.
Sometimes homes are mistakenly insured for their market value. However, market value is normally not indicative of the home's replacement cost.
For example, market value also reflects the cost of the foundation and the nondestructible land value, both of which normally survive intact if the house burns to the ground and has to be rebuilt.
In addition, some homes may be insured improperly to meet mortgage company requirements. Some mortgage companies require the amount of insurance be at least equal to the mortgage balance on the house. The mortgage balance is also not reflective of the home's replacement cost, which is often considerably more but can also be less. Insurance companies and agents often struggle in properly educating mortgage companies about these distinctions, but there is nothing to prevent you from insuring to actual replacement cost if that is indeed greater than the mortgage balance. The problem occurs when the mortgage balance is greater than the replacement cost, which will result in the purchase of a higher limit than needed.
The bottom line is that you should work with your insurance agent to determine the correct replacement cost and resulting insurance limit for your home. Most agents use sophisticated replacement cost estimating packages that can fairly and accurately determine the replacement cost value of your home. Factors that these programs use to determine this figure include the following.
* Square footage of the home, including its configuration
* Construction costs for your community
* Exterior wall construction type, including frame, stucco, brick, or brick veneer
* Style of home
* Number of bathrooms and bedrooms
* Roof type
* Attached garages, fireplaces, built-in cabinets, and other special features, such as hardwood floors
As a final note, you should request an annual review of your homeowners policy to keep up with increasing building supply and labor costs. Also ask your agent about the advisability of adding an "inflation guard" endorsement to your policy or about the availability of guaranteed replacement cost coverage to help assure that your home is properly protected.
Want more information on homeowner's insurance? Email "HOME" as the subject to info@lynnbrookeins.com.
www.lynnbrookeins.com
REPLACEMENT COST - the cost to reconstruct a home with all of its unique features in today's marketplace, using materials and craftsmanship of similar quality.
Is the amount of property insurance on your home correct? What is the appropriate amount of coverage for your home? To begin with, it should be insured for at least 80 percent of its replacement cost when covered under a standard homeowners policy. Replacement cost refers to the amount necessary to repair or replace damaged building parts with items of like kind and quality. Some insurance companies even require 90 percent or higher figures when the guaranteed replacement cost option is offered.
With this option, the policy pays the full cost of replacing your home, without any depreciation and often without a maximum reconstruction payment. (This gives you added protection if there is a sudden jump in construction costs due to a major shortage of certain building materials. Construction costs often "surge" following large catastrophes, such as tornadoes or floods.) Note that guaranteed replacement cost coverage approaches can vary by state and are not even available in every state.
Many homes are either underinsured or overinsured. For example, some homes insured for long periods of time with one insurance company may have inadequate limits of insurance due to increased building costs. In many cases, homes have been remodeled and improved, and this information has not been conveyed to the insurance agent or company, resulting in severe underinsured home values. If your home is underinsured, you not only have inadequate protection for total losses, but you may also lack full protection for smaller losses.
Sometimes homes are mistakenly insured for their market value. However, market value is normally not indicative of the home's replacement cost.
For example, market value also reflects the cost of the foundation and the nondestructible land value, both of which normally survive intact if the house burns to the ground and has to be rebuilt.
In addition, some homes may be insured improperly to meet mortgage company requirements. Some mortgage companies require the amount of insurance be at least equal to the mortgage balance on the house. The mortgage balance is also not reflective of the home's replacement cost, which is often considerably more but can also be less. Insurance companies and agents often struggle in properly educating mortgage companies about these distinctions, but there is nothing to prevent you from insuring to actual replacement cost if that is indeed greater than the mortgage balance. The problem occurs when the mortgage balance is greater than the replacement cost, which will result in the purchase of a higher limit than needed.
The bottom line is that you should work with your insurance agent to determine the correct replacement cost and resulting insurance limit for your home. Most agents use sophisticated replacement cost estimating packages that can fairly and accurately determine the replacement cost value of your home. Factors that these programs use to determine this figure include the following.
* Square footage of the home, including its configuration
* Construction costs for your community
* Exterior wall construction type, including frame, stucco, brick, or brick veneer
* Style of home
* Number of bathrooms and bedrooms
* Roof type
* Attached garages, fireplaces, built-in cabinets, and other special features, such as hardwood floors
As a final note, you should request an annual review of your homeowners policy to keep up with increasing building supply and labor costs. Also ask your agent about the advisability of adding an "inflation guard" endorsement to your policy or about the availability of guaranteed replacement cost coverage to help assure that your home is properly protected.
Want more information on homeowner's insurance? Email "HOME" as the subject to info@lynnbrookeins.com.
www.lynnbrookeins.com
WHAT TO DO IN THE EVENT OF AN AUTO ACCIDENT
What Should I Do at the Scene of an Accident?
Knowing what to do if you are involved in an accident can save lives and also make the claims process easier. Here are some helpful tips.
1. Stop your car and find out if anyone is injured (Safety First!)
2. Call the police. Tell them how many people were hurt and the types of injuries you observed. They will notify the nearest medical personnel. The police will also need to know your exact location, whether there are any disabled vehicles and if the accident is blocking traffic.
3. Stay at the scene of an accident until a police officer tells you that you are free to go. You could be ticketed for leaving the scene.
4. Protect yourself and the accident scene, and try to warn approaching drivers by turning on your vehicle's flashers.
5. Exchange vital information with the other driver(s) involved. Make detailed notes on:
· the names, telephone numbers (including cell phone numbers) and addresses of all drivers, passengers and witnesses involved in the accident
· license plate numbers
· the make and model of each car
· driver's license numbers
· insurance identification
· the names and badge numbers of all responding police officers or other emergency personnel
6. Ask the investigating officer where you can obtain a copy of the police report. You will probably need it when you submit your claim to your insurance company.
7. Keep copies of all documentation relating to the accident.
8. Notify your insurance agent as soon as possible.
9. Keep a disposable camera in your car to take pictures of the accident scene and damages OR USE YOUR CELL PHONE CAMERA!
Knowing what to do if you are involved in an accident can save lives and also make the claims process easier. Here are some helpful tips.
1. Stop your car and find out if anyone is injured (Safety First!)
2. Call the police. Tell them how many people were hurt and the types of injuries you observed. They will notify the nearest medical personnel. The police will also need to know your exact location, whether there are any disabled vehicles and if the accident is blocking traffic.
3. Stay at the scene of an accident until a police officer tells you that you are free to go. You could be ticketed for leaving the scene.
4. Protect yourself and the accident scene, and try to warn approaching drivers by turning on your vehicle's flashers.
5. Exchange vital information with the other driver(s) involved. Make detailed notes on:
· the names, telephone numbers (including cell phone numbers) and addresses of all drivers, passengers and witnesses involved in the accident
· license plate numbers
· the make and model of each car
· driver's license numbers
· insurance identification
· the names and badge numbers of all responding police officers or other emergency personnel
6. Ask the investigating officer where you can obtain a copy of the police report. You will probably need it when you submit your claim to your insurance company.
7. Keep copies of all documentation relating to the accident.
8. Notify your insurance agent as soon as possible.
9. Keep a disposable camera in your car to take pictures of the accident scene and damages OR USE YOUR CELL PHONE CAMERA!
Comp vs. collision deductibles
Collision vs. Comprehensive deductibles
Collision Deductible
This coverage protects your car. It pays for damage to your vehicle resulting from a collision with another car or object, or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000-the higher your deductible, the lower your premium.
Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car-minus the deductible-up to the limit of the actual cash value of your car. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver's insurance company. If they are successful, you'll also be reimbursed for the deductible.
Comprehensive Deductible
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
Collision Deductible
This coverage protects your car. It pays for damage to your vehicle resulting from a collision with another car or object, or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000-the higher your deductible, the lower your premium.
Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car-minus the deductible-up to the limit of the actual cash value of your car. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver's insurance company. If they are successful, you'll also be reimbursed for the deductible.
Comprehensive Deductible
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
Free Home Inventory Software
Taking Home Inventory
This software will help you create a room-by-room inventory of your personal possessions. Having an up-to-date home inventory will help you:
Purchase enough insurance to replace the things you own.
Get your insurance claims settled faster.
Substantiate losses for your income tax return.
You can always simply make a list in a notebook and save receipts and photos in a file. This software, however, should make this task fun and simple. More importantly, with the click of your mouse, you can update this list as you buy or eliminate personal possessions.
Getting Started
If you have been setting up a household, starting a home inventory can be relatively simple. You could even attach recent wedding registries to substantiate new possessions. But, if you have been living in a house for many years, this task may seem daunting. If you set aside an afternoon and get your entire household involved, it can be an enjoyable experience. It is much easier to document your possessions before you suffer a loss from a fire, hurricane, burglary or other disaster.
Big Ticket Items
Make note of expensive items, such as jewelry, furs, and collectibles. Valuable items may need separate insurance. But, don't forget more commonplace items such as toys, CD's and clothing.
Taking Photographs
Along with the written information, consider adding photographs of your possessions, which can be done easily with a digital camera. Those with film cameras can scan print photographs or have their film developer save the images to a disk. You can always simply store your print photographs with a copy of your inventory.
Videotape It
Walk through your house or apartment videotaping the contents. Remember to open drawers and closets. One advantage of videotape is that you can narrate what you are filming.
Use a personal computer
Use your PC to make your inventory list. Personal finance software packages often include a homeowners room-by-room inventory program.
Storing the list, photos and tapes
Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you'll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.
Insurance is our life, let us insure yours.
ISU - LynnBrooke Agency
1449 Kimber Lane, Ste. 100B
Evansville, Indiana 47711
812-475-9801
This software will help you create a room-by-room inventory of your personal possessions. Having an up-to-date home inventory will help you:
Purchase enough insurance to replace the things you own.
Get your insurance claims settled faster.
Substantiate losses for your income tax return.
You can always simply make a list in a notebook and save receipts and photos in a file. This software, however, should make this task fun and simple. More importantly, with the click of your mouse, you can update this list as you buy or eliminate personal possessions.
Getting Started
If you have been setting up a household, starting a home inventory can be relatively simple. You could even attach recent wedding registries to substantiate new possessions. But, if you have been living in a house for many years, this task may seem daunting. If you set aside an afternoon and get your entire household involved, it can be an enjoyable experience. It is much easier to document your possessions before you suffer a loss from a fire, hurricane, burglary or other disaster.
Big Ticket Items
Make note of expensive items, such as jewelry, furs, and collectibles. Valuable items may need separate insurance. But, don't forget more commonplace items such as toys, CD's and clothing.
Taking Photographs
Along with the written information, consider adding photographs of your possessions, which can be done easily with a digital camera. Those with film cameras can scan print photographs or have their film developer save the images to a disk. You can always simply store your print photographs with a copy of your inventory.
Videotape It
Walk through your house or apartment videotaping the contents. Remember to open drawers and closets. One advantage of videotape is that you can narrate what you are filming.
Use a personal computer
Use your PC to make your inventory list. Personal finance software packages often include a homeowners room-by-room inventory program.
Storing the list, photos and tapes
Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you'll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.
Insurance is our life, let us insure yours.
ISU - LynnBrooke Agency
1449 Kimber Lane, Ste. 100B
Evansville, Indiana 47711
812-475-9801
Child away at college?
College bound...
MP3 player...DVD player....Computer...Printer....CD collection....bedding, lamps, closet organizers, name brand clothing - it all adds up. College isn't cheap - neither is furnishing a dorm room! But is it all insured? Your childs belongings are most likley covered under your Homeowner's or Renter's policy however, the personal possessions limit and the Electronics/Jewelry limits are often times very low. Call your agent to make sure your limits are adequate to cover your child's belongings in the event of a loss. Also, if they live off campus they will need a separate renter's insurance policy.
If your child leaves their car at home and go to school more than 100 miles away - you will receive a big discount on your auto insurance - sometimes up to 40%.
MP3 player...DVD player....Computer...Printer....CD collection....bedding, lamps, closet organizers, name brand clothing - it all adds up. College isn't cheap - neither is furnishing a dorm room! But is it all insured? Your childs belongings are most likley covered under your Homeowner's or Renter's policy however, the personal possessions limit and the Electronics/Jewelry limits are often times very low. Call your agent to make sure your limits are adequate to cover your child's belongings in the event of a loss. Also, if they live off campus they will need a separate renter's insurance policy.
If your child leaves their car at home and go to school more than 100 miles away - you will receive a big discount on your auto insurance - sometimes up to 40%.
How to insure a teenage driver
As soon as your teenager begins to drive, notify your insurance agent that there will be an additional driver in the house. Since teenagers are inexperienced drivers, they tend to get into a lot of accidents. This will, unfortunately, be reflected in higher insurance rates. If you have a daughter, you can expect your insurance to go up as much as 50 percent. A son will increase your car insurance by as much as 100 percent. Consider also raising liability limits or buying an umbrella liability policy for additional protection.
How to keep the increased cost to a minimum
Teensurance™ provides a range of ways to keep teen drivers safer. It's all about providing parents peace of mind while teens earn their freedom. The Teensurance Package includes:
24/7 Roadside Assistance
Covers your teen in most vehicles in these cases:
Out of gas
Dead battery
Flat tire
Locked out
Stalled vehicle
Safety Beacon™ Convenience and Protection System: A professionally installed GPS vehicle monitoring device that enables:
Stolen vehicle tracking and retrieval support
Remote door unlock*
Speed limit reminders
Safe driving zones
Curfew reminders
Vehicle location tracking
TeenDASH for Safety™ Assessment+
Tools to help parents identify attitudes that put kids at risk and strategies to help teens make better choices at the wheel.
Parent/Teen Contract
Parent Guide-Preparing Your Teen for the Road Ahead
Insurance Rate Explorer
For more information about TEENSURANCE from Safeco, please call 812.475.9801, or email your request to info@lynnbrookeins.com with TEENSURANCE in the subject line.
Insurance is our life, let us insure yours.
ISU - LynnBrooke Agency
1449 Kimber Lane, Ste. 100B
Evansville, Indiana 47711
812-475-9801
www.lynnbrookeins.com
How to keep the increased cost to a minimum
Teensurance™ provides a range of ways to keep teen drivers safer. It's all about providing parents peace of mind while teens earn their freedom. The Teensurance Package includes:
24/7 Roadside Assistance
Covers your teen in most vehicles in these cases:
Out of gas
Dead battery
Flat tire
Locked out
Stalled vehicle
Safety Beacon™ Convenience and Protection System: A professionally installed GPS vehicle monitoring device that enables:
Stolen vehicle tracking and retrieval support
Remote door unlock*
Speed limit reminders
Safe driving zones
Curfew reminders
Vehicle location tracking
TeenDASH for Safety™ Assessment+
Tools to help parents identify attitudes that put kids at risk and strategies to help teens make better choices at the wheel.
Parent/Teen Contract
Parent Guide-Preparing Your Teen for the Road Ahead
Insurance Rate Explorer
For more information about TEENSURANCE from Safeco, please call 812.475.9801, or email your request to info@lynnbrookeins.com with TEENSURANCE in the subject line.
Insurance is our life, let us insure yours.
ISU - LynnBrooke Agency
1449 Kimber Lane, Ste. 100B
Evansville, Indiana 47711
812-475-9801
www.lynnbrookeins.com
September is National Preparedness Month
National Preparedness Month is a nationwide effort held annually in September. It has been developed to encourage Americans to take simple steps so they're prepared for emergencies in their homes, businesses and schools. National Preparedness Month 2008 is sponsored by the U.S. Department of Homeland Security.
Throughout September, Homeland Security will work with a wide variety of organizations, including local, state and federal government agencies and the private sector. Their goal is to highlight the importance of family emergency preparedness and promote individual involvement through events and activities across the nation.
To help you get started on your emergency preparedness goals, Ready.gov is offering the following publications FREE of charge:
1) Kit Checklist
2) Ready Brochure
3) Family Emergency Plan
4) Preparing Makes Sense Booklet
5) Are You Ready Manual
6) Emergency Supply List
7) and other special interest publications for older adults, people with pets, and publications and posters for kids.
Or visit the American Red Cross for other resources.
These tools are all designed to help you stay prepared in the event of an emergency. Being prepared is so important in your organizing quest. Please take the time today to keep yourself and your family safe.
Throughout September, Homeland Security will work with a wide variety of organizations, including local, state and federal government agencies and the private sector. Their goal is to highlight the importance of family emergency preparedness and promote individual involvement through events and activities across the nation.
To help you get started on your emergency preparedness goals, Ready.gov is offering the following publications FREE of charge:
1) Kit Checklist
2) Ready Brochure
3) Family Emergency Plan
4) Preparing Makes Sense Booklet
5) Are You Ready Manual
6) Emergency Supply List
7) and other special interest publications for older adults, people with pets, and publications and posters for kids.
Or visit the American Red Cross for other resources.
These tools are all designed to help you stay prepared in the event of an emergency. Being prepared is so important in your organizing quest. Please take the time today to keep yourself and your family safe.
Join us at Heart's Desire - Elite Bridal Show to benefit Holly's House
Location: Casino Aztar
When: Sunday, October 26th, 11 AM - 6 PM
Admission: $10 at the door for bride and 1 guest, all additional guests $5 per person.
ALL PROCEEDS TO BENEFIT HOLLY'S HOUSE http://hollyshouse.org/
For more information contact: Nikki Davis Digital Photography (812) 303-6662
When: Sunday, October 26th, 11 AM - 6 PM
Admission: $10 at the door for bride and 1 guest, all additional guests $5 per person.
ALL PROCEEDS TO BENEFIT HOLLY'S HOUSE http://hollyshouse.org/
For more information contact: Nikki Davis Digital Photography (812) 303-6662
Whose car should your kids drive?
Consider several factors before you allow your kids to get behind the wheel of someone else's car — or before someone gets behind the wheel of your car.
With school back in session, more students will be driving to and from school during the morning and afternoon hours. Parents know they can't monitor their kids at all times, but they can work with their kids to set ground rules before young drivers hit the road. One of these rules: What cars your kids can drive. Before you let your child drive someone else's car, or before someone outside the family drives your car, consider these factors.
If your child's friend drives your car and wrecks it, whose insurance covers the damages? The answer varies depending on the state you live in. In most states, insurance coverage follows the car — not the person driving it — in the event of an accident. However, if damages resulting from the accident exceed the amount allowed by your policy, then the driver's insurance may be considered as secondary or supplemental insurance to the insurance on the car.
For instance, let's say your policy has $15,000 in property damage liability coverage. Your daughter lets her friend drive your car to her mom's house 30 miles away. In the process, she causes a three-car collision, which results in $20,000 of damage to the other vehicles and property.
In most states, the insurance you have on your car will cover the damage, but since you only have $15,000 of coverage, the friend's insurance policy may kick in and pay for the remaining $5,000 of damage. However, in some states, you could personally be held responsible for any remaining damages beyond your insurance limits if your child's friend doesn't have car insurance, even though you or your child weren't driving at the time of the accident.
It's also possible that if your insurance company pays for damage in an accident, they may pursue the friend's insurance company to pay back the damage. They won't attempt to recover any money that you pay out of pocket, though. Again, this is both situational and based on your state's laws, so there's no single answer to the question. Your best option is to check with your insurance company to find out how insurance works in your state.
Before your child's friend drives your car, make sure you and your child think about the following:
Whose insurance will pay for the damage?
Who will ultimately be responsible for paying any out-of-pocket expenses?
If your insurance pays, are you willing to take the risk, including possibly paying more for insurance when your policy renews? If not, you may want to rethink letting anyone outside of your family drive your car.
Should You Update Your Policy?
If you know your child's friend drives your car regularly, it may be best to add that person to your auto insurance policy. Similarly, if your child regularly drives a roommate's vehicle, it may be best to add your child to the roommate's policy.
Often, insurance companies may require that you add a driver or car to your policy if the person or car isn't already on it. This helps ensure that proper coverage is afforded in most situations.
If you have questions about whether or not to update your policy, your insurance company should be able to answer them. With a Progressive policy, customer service representatives are happy to answer your questions 24/7 by phone at 1-800-PROGRESSIVE.
With school back in session, more students will be driving to and from school during the morning and afternoon hours. Parents know they can't monitor their kids at all times, but they can work with their kids to set ground rules before young drivers hit the road. One of these rules: What cars your kids can drive. Before you let your child drive someone else's car, or before someone outside the family drives your car, consider these factors.
If your child's friend drives your car and wrecks it, whose insurance covers the damages? The answer varies depending on the state you live in. In most states, insurance coverage follows the car — not the person driving it — in the event of an accident. However, if damages resulting from the accident exceed the amount allowed by your policy, then the driver's insurance may be considered as secondary or supplemental insurance to the insurance on the car.
For instance, let's say your policy has $15,000 in property damage liability coverage. Your daughter lets her friend drive your car to her mom's house 30 miles away. In the process, she causes a three-car collision, which results in $20,000 of damage to the other vehicles and property.
In most states, the insurance you have on your car will cover the damage, but since you only have $15,000 of coverage, the friend's insurance policy may kick in and pay for the remaining $5,000 of damage. However, in some states, you could personally be held responsible for any remaining damages beyond your insurance limits if your child's friend doesn't have car insurance, even though you or your child weren't driving at the time of the accident.
It's also possible that if your insurance company pays for damage in an accident, they may pursue the friend's insurance company to pay back the damage. They won't attempt to recover any money that you pay out of pocket, though. Again, this is both situational and based on your state's laws, so there's no single answer to the question. Your best option is to check with your insurance company to find out how insurance works in your state.
Before your child's friend drives your car, make sure you and your child think about the following:
Whose insurance will pay for the damage?
Who will ultimately be responsible for paying any out-of-pocket expenses?
If your insurance pays, are you willing to take the risk, including possibly paying more for insurance when your policy renews? If not, you may want to rethink letting anyone outside of your family drive your car.
Should You Update Your Policy?
If you know your child's friend drives your car regularly, it may be best to add that person to your auto insurance policy. Similarly, if your child regularly drives a roommate's vehicle, it may be best to add your child to the roommate's policy.
Often, insurance companies may require that you add a driver or car to your policy if the person or car isn't already on it. This helps ensure that proper coverage is afforded in most situations.
If you have questions about whether or not to update your policy, your insurance company should be able to answer them. With a Progressive policy, customer service representatives are happy to answer your questions 24/7 by phone at 1-800-PROGRESSIVE.
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