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Adult Children on Your Policies Can Create Coverage Gaps
Homeowner's insurance
Under a homeowner's policy, the insured is limited to:
This causes issues for some people, as many children are still in college beyond the policy cut-off date. You could run into coverage gaps for their contents and personal liability if:
The picture gets murkier these days as well because many parents are renting an apartment or buying condos for their adult children to live in. Some parents may mistakenly think that since they are footing the bill, their insurance may still cover their adult child. But that's not the case. Auto coverage Typical auto insurance policies will include family members under the coverage. The standard policy form defines a family member as "a person related to you by blood, marriage or adoption who is a resident of your household." For your adult child's vehicle, insurance coverage is determined by:
As you can see, even if a parent owns the title of the car and it's insured under the parent's policy, if the adult child is driving the vehicle and lives on their own, they could run into coverage issues in certain instances. The following scenarios could leave you with coverage gaps:
If you have an adult child on your policy, play it safe and give us a call so we can go over your policy and circumstances with you to identify any possible coverage gaps. Without the proper insurance protection for injuries and damages, you risk significant financial liabilities that you may not be able to cover.
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With more cars connected to the web, helping us navigate, talking to other cars as we zoom down the road and sometimes even driving for us, it won't be long until our autos can also make an insurance claim for us after an accident.
Consider that more cars are being built with sensors and technology that allows them to communicate with external parties. It's not hard to imagine that the car could communicate immediately with emergency services and your insurance company if there is an impact. The emergency authorities could be notified in real time with detailed information about the condition of the vehicle and the location of the accident. Insurers are currently teaming up with tech firms and are developing programs that would prompt your vehicle to report immediately to your insurance company's data center if it's been in an accident, which could start the claim. These programs could also:
Right now, all of the technological parts of this puzzle are in place, and insurers are working with tech companies on apps to make it happen. Pioneering partnerships Insurance companies are also currently working to create partnerships with auto manufacturers to make all this a reality. The most notable of these partnerships involves General Motor's OnStar system, with the auto giant having secured relationships with about a half dozen auto insurance companies already in the US. In Europe, BMW and Allianz have a similar partnership. The evolution is ongoing, but in the next few years, as cars become smarter, it won't be long until we see the next stage in development for car insurance that will make your life easier and also give you an added sense of security. |
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