Do you or your family members have a student returning home for summer-break? Could this student be driving any vehicles? Am I covered if my son or daughter drives my car? These may be questions you are thinking about as our schools prepare to begin summer break, in this post, we are going to discuss what you need to know about how your auto policy functions during these situations.
For starters, is your child listed as a “driver” on any policy; yours or their own? If they are listed on a policy other than yours, are the liability limits equal to your own? Even while your child is away at school, most policies will still define them as a member of your household if they lived with you immediately preceding going to school, are a full-time student, and are under age 21. If your policy still considers your child to be a member of your household, and they’re not listed as a driver on the policy, this may remove them from the coverage provided for a Permissive User and could potentially lead to a claim being denied and ultimately increasing your personal financial liability exposure.
While it may be tempting to remove younger-drivers from our auto policy as soon as possible, the definition of household-member can be very important to consider. Should an accident occur, and your child’s liability limits be exceeded, it is not farfetched to expect your policy and assets to be the next target. While each company’s policy may have a different definition for a household-member, it is very important to understand how your specific policy identifies who is an insured, and who is considered a house-hold member in regards to liability. Reading your policies definitions could potential save you from a damaging financial loss.
We hope this information has you thinking about your auto policy and the potential gaps or exclusion from protection. As with all insurance, it is important to remember that your policy is a very specific contract outlining the responsibility of each party and what is, or is not, covered. At the Hunt Insurance Agency, we look forward to identifying and explaining these policy-functions in order to deepen your understanding and provide you the opportunity to know in advance if your policy covers whatever issue we may encounter in life.
Please let us know what thoughts, follow-up questions, or comments you may have regarding this information. We look forward to your responses which help us better provide important information to all insurance consumers.
Thank you for reading!