Should I Add My Teenager To My Auto Insurance Policy in Michigan?
Reader’s Question:
My legal aged son has moved out of my house in Battle Creek, MI to live over at the apartment of his friend’s parents. The thing is, he hasn’t changed the address on his driver’s license and he’s currently driving their car. Another thing that’s been bothering me is he wants to buy a car and wants to insure it using my name. Any information regarding my situation would be greatly appreciated.
Mary
Battle Creek, MI
Insuring vehicles that belong to other people are allowed by some car insurance companies even if you have no “insurable interest” in it. However, I’ve never heard of any car insurance company that allows people to insure vehicles from more than one household. If a vehicle owner decides to move elsewhere with his car, like your son, moving out of Battle Creek MI, chances are, the car insurance company will not cover the vehicle’s insurance. As for your other inquiry, if your son is going to drive for his friend’s parents , they should list him as driver on their car insurance policy for them not to have the risk of getting denied car insurance services if ever he gets involved in a car accident.
Will Auto Insurance Policy in Michigan Cover Out of State Claim?
Reader’s Question:
In a couple of months, I am planning to move to PA. My present address is in Battle Creek, MI where my family lives and I intend to keep my car insurance here. My dad told me that my insurance policy won’t be honored once I moved to PA and if ever I get into an accident, he can be sued? Is this true?
Nicole
Battle Creek, MI
First thing you have to do is to speak with your car insurance agent regarding your plan to move to Pennsylvania. The car insurer can tell you if you would still remain on your dad’s policy but usually the answer is no. In cases where you move away from home, especially out of state, and since the car is no longer garaged at the household address listed on the policy, an insurance provider will likely no longer carry you and the vehicle on the current policy.
Normally, car insurance companies will follow the limits set by the state where you’re operating a vehicle in cases where you are only visiting or are driving through a state and not when you have moved there for good. If you fail to inform your insurance company regarding moving out of state, or properly changing your coverages over to PA insurance, this would likely be taken as misrepresentation by the Michigan insurer which is a form of auto insurance fraud and is a reason to deny your insurance claims.
If your car insurance did not accept the claim and/or if your car insurance limits were too low and exceeded, your father, both you as the driver and your father as the car owner could be held liable and sued. Your father may face a serious liability putting his assets at risk so make sure that your liability limits are sufficiently high enough.
What Is The Minimum Car Insurance Requirement in Michigan?
Reader’s Question:
Is there any state by state minimum car insurance requirements? I live in Michigan.
Ruth
Battle Creek, MI
Yes there are, Ruth.
You need to understand that every state requires all drivers to carry a minimum amount of liability insurance on their cars. Such minimums are usually expressed in 3-part numbers. Say, in Michigan, that’s 20/40/10. The first two numbers, 20 and 40, normally refers to bodily injury liability insurance, the 1st number being the per person limit, while the 2nd as the per accident limit. The 3rd number is usually for property damage liability coverage. So based on Michigan law of 20/40/10, if you have a minimum insurance required, then you would normally have $20,000 for bodily injury coverage per person injured with $40,000 maximum per accident, and $10,000 as property damage liability insurance.
It may or may not be good to carry additional coverage as these are the only legal minimum requirements. Although, carrying more is also a good idea. Be aware though that these minimums will only cover damage to other motorists 3rd party property and not for your own. You have to get comprehensive coverage for your own coverage like medical, collision, and other-than-collision coverage.
With regard to state minimums, Alaska and Maine are the ones which have highest at 50/100 and at least $25,000 for property damage while Mississippi has the lowest minimums of 10/20/5.
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