AUTOMOBILE INSURANCE

Many parents often face a dilemma when their children become eligible to drive. Should they buy a car for their child and add the child to their insurance or, in the alternative, should they put the car in the child's name and have the child obtain a separate auto policy solely in the child's name. One of the risks of adding your child to your policy is that your assets can be exposed if your child causes a serious injury and your coverage is insufficient to pay the damages. However, your exposure can and most likely will be eliminated by purchasing a million dollar umbrella. Another method of avoiding legal exposure is to have your child purchase his or her own vehicle and auto insurance. The only disadvantage of doing that is that your child will probably be unable to receive any of the benefits of your coverage in the event your child is injured by another driver, even if your child is living at home. You should check your policy or speak to your lawyer or insurance agent to be clear. Accordingly, I strongly recommend that your child obtain at least $300,000.00 in coverage and not the mandatory minimum of $20,000.00 which, although cheap, will not provide the necessary protection in the event your child is seriously hurt.

I also strongly recommend that you never reduce your uninsured coverage. By law, your uninsured coverage, which is the coverage that compensates you for your injuries and losses in the event you are injured by an uninsured or underinsured driver, must be equal to the amount of liability insurance you purchase - unless you elect a lower amount in writing. Many insurance companies will send you notices advising you that you can save money by electing lower uninsured coverage. Throw the notice away. With the cost of medical treatment today, you will need every penny of your insurance to adequately compensate you if you are hurt by an uninsured driver.

If I can be of any assistance to you regarding auto insurance or any other legal matter, please give me a call at (203) 746-6656 or e-mail me at rsmith@attorneyrichardsmith.com

Richard A. Smith, Esq.
Attorney at Law