daugen
Epic Contributor
ask your insurance agent to price out both options. The nice part about licensing/insuring in her own name is if she gets into a terrible at fault accident, with
costs exceeding your insurance coverage, it doesn't mean the family farm is on the line. Basically you are protecting your assets that way. I would get a 500K combined single limit policy, reject stacked uninsured motorists coverage and if you/she has really good medical coverage, maybe cut back, where possible, the no fault medical coverage.
The alternative is to put her on your policy but beware of several issues, all of them having to do with cost, and liability. Usually no matter if your daughter is primary on one vehicle and it only has liability coverage, where you self insure physical damage (in deer country having comprehensive is usually a good idea though), the insurers will rate the most expensive vehicle on your policy for her high underage driving class for physical damage coverage. This means comp and collision will cost double to triple on that car, even if she doesn't drive it at all. If your cars are older, this becomes less of an issue but if you have a new big truck, whooeee, unless it is registered in business name.
Why do they do this? Decades of experience where junior wants to take Mom's expensive car to the prom instead of his beater and cracks it up on the way home. Exactly what I did with my mother's Olds 88 convertible with a 455...
After paying too many of those claims it became standard industry practice to surcharge the highest symbol car with junior's use factor, which if pleasure use low mileage was a 1.0, the factor was between 2.5 and 3.5. Just gets down to whether cost is affordable.And for sure, you should always have an umbrella excess liability policy over top your homeowners and auto policies.
Not just boys anymore being the problem. Texting females which we have all seen...are catching up.
so get two quotes. But if you have a big net worth in your home/farm, and unless you have a multi-million dollar umbrella policy, putting a car in junior's name may be a good idea. However...they may not write the policy for you...particularly if you don't have both your homeowners and auto with the same company.
So you may not have a choice. And yes you can drive your daughter's car and be insured while you are driving it, even if it's titled and insured under her own policy.
that's called non-owned auto coverage, similar if you borrowed neighbor's car or rented a car at airport.
hope this helps. Much of this depends upon whether insurance industry and/or your insurer is making money at the time.
If they are, rules are more flexible,you never know until you ask.
