Adding a person who holds a permit to your policy should not cost anything. And they are only covered while they are a PERMIT holder, not a license holder.
Once that person gets a license, you have like 30 days or something (read your policy) to add them to your insurance policy, otherwise any claim would be denied, and I doubt your umbrella policy would protect you either. Your insurer may even cancel your policy for lying and withholding information.
I guess a person could be a permit holder for years, but they cannot drive legally by themselves. A valid license holder must be the passenger in the front seat.
Not sure why you are trying to pull a fast one on your insurance company and not tell them you have a teen with a license driving your car. Youâre willing to take that risk, but are more worried about your umbrella policy protecting you? Neither one will protect you if you fail to add a teenage license holder to your policy.
I was actually very surprised to find out there was no increase in premiums. I guess the permit risk doesnât go up much or courtesy? I donât want to break any rules just know what the boundaries/ grey zone are.
Iâve already added him today. 30 days from license is the kind of info i was looking for. It was the same for new car purchase and I did wait till day 29 to do that. I will review policy for license notification deadline and push it within the âgrey zoneâ CSR said they check with DMV regardless. Weâre talking hundreds of $ per month if all premiums go up. I assume thatâs the case with umbrella and all the increased auto coverages.
Iâm even ok with adverse determination if it comes to auto, but would umbrella protect our personal assets in that case for an omission error? (much bigger liability)
Maybe I should just wait till he is older to get his license/actually extend out his permit period for a few months. His grandparents who donât drive have licenses can ride with him too, does umbrella cover in that permit situation (theyâre not on our policy)
I have read online where people put the cars in business name and lost business assets due to teen wreck lawsuits
No offense, but I figure youâll get whatâs coming to you. That hasnât been the case with your educational tuition obligations, but this may be a sign of the long term effects of bailouts ⌠or maybe not. @halterk 's advice sounds solid.
Also, to try to save you some risk/money, put yourself in your new teenage driverâs shoes. At some point, they will be tempted to drive without an adult in the car. The longer you force them onto a permit, the greater the temptation will be. Imagine having a grandparent in the car (almost as a chaperone) while you pick up your girlfriends or buddys.
Iâm sure their stats show no significant risk increase. Remember when you learned to drive? Was there a chance that you were going to peel out, gawk at the blond in the convertible, or want to race your buddy while your parent was in the car? With a parent around, youâre on your best behavior - 10 and 2, easy off the line, full stops, etc.
Thatâs glad to hear, because I was getting a whiff of something else upthread. Glad I was off base.
Yes, but you cannot offload your personal liability. For liability to remain isolated within the LLC, your actions need to be for the benefit of the LLC. Your 16 year old making deliveries in the company car would be covered, your 16 year old driving to late-night dinner with his friends, not so much. The carâs owner could be liable regardless (and resulting damages would be contained within the LLC), but the driver would also be liable - and the circumstances dictate if the driverâs liability falls under the umbrella of the LLC.
not trying to merge threads but the vein is similar, I didnât cause the âbailoutsâ, have religiously paid the bills for 20+ yrs, but if the bailouts are coming (theyâre not) I want to make sure Iâm in the right line, legally. Thanks to the advice on the other thread I did move loans over in time to âqualifyâ.
Re:: teen heâs no rush to drive either. thatâs the dilemma, these days there are options like uber etc. So why get him a license unless heâll be using it. Heâs also a rule follower, straight A student etc.
Insurance policies are complex, with u/w and sales being in two different worlds (I know from the health field, but not auto/umbrella.
not if the teen isnât a âreal employeeâ. Brought this up as example that Iâm not going to set up BS shell corp. etcs that can fail .Iâm more interested in legal ways to lower risk, premiums. Similar to evasion vs tax planning. Umbrella and auto. Seems like if auto is good, umbrella is good.
Fair enough. Being strategic about Opportunities vs Bail outs.
Re: it taking so long I owed $175K getting out of school, more details on other thread. Trying to keep the insurance bill down so I can pay it off, now that âbail outâ is no longer happening.
You should consult an attorney who specializes in trusts. The most obvious benefit of having a property in a trust is that it will avoid probate if something happened to the primary owners. Even if you donât purchase it directly into a trust, you should transfer it into a trust right after. Probate could take a big chunk of the asset value in fees. The rules and amounts differ by state.
In terms of liability protection, the trust can buy you a little privacy, assuming you donât use your own name in the name of the trust. Before an attorney decides to sue you (or work with a client who wants to sue you), theyâll do an asset search using your name to see how much they could get out of you. If your assets arenât in your name, they wonât easily find it that way. But if youâre actually found personally liable for something, I donât think a simple family trust could save you. So I donât think it makes any difference for insurance. At least thatâs what I read on the internet.
GTK Thatâs what I researched too. I guess my lawyer is not that great at asset preservation b/c our trust is self named:) Cost us several grand to set up too.so good for probate issues and not much else .
