you’re the parent of a teen, you know how expensive it is — cell phones, sports
activities, video games. When a teen starts driving, most parents pay the car
insurance as well. Car insurance can be very expensive for teenagers due to
their lack of experience on the road. Statistics show that teen drivers are
involved in a higher number of accidents with fatal or critical injuries than
more experienced, older drivers.
Looking for ways to decrease the cost
of auto insurance for your teen drivers?
Check for a good
student discount. In the eyes of an insurance company,
teenagers who do well in school appear more responsible — and your teen doesn’t
have to be an honor student to qualify! Each insurance company has its own
definition of a good student. You can also enroll your teen in a driver’s
education course, even if it isn’t required in your state. Your insurance agent
can advise you on whether a driver’s education course will lower your insurance
2. Choose an older model car for your
teenager. Your teen might hope for that shiny new sports car, but the
insurance costs on sports cars are astronomical, as they are tied to the
horsepower rating of the car as well as the theft rate. Older cars have a lower
book value, which in turn reduces the insurance premium.
3. Raising your deductible could be an
option. A higher deductible means lower monthly premiums. We recommend
saving the difference in a special account — in case of an accident, you can
use it to pay the deductible.
proactive when adding a new driver to your existing insurance policy. Do your
research, and ask your agent! Discounts are out there if you know where to look.
It is widely thought
that a homeowner’s insurance policy covers only incidents that physically occur
in the home. This is only partially correct — in fact, with the right
conditions in place, coverage can go beyond the home and can insure you for a
personal injury claim. You might think of the term “personal injury” as meaning
a physical injury suffered by another party. But while a liability policy will
likely apply to an incident of physical injury, personal injury
is a broader concept.
In the insurance
world, personal injury can include harm caused by false arrest, detention, or
imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion
of privacy. A personal injury policy can protect a homeowner and others covered
under the policy against a claim for almost every injury that someone can
experience without suffering any actual physical harm.
Given this broader
definition of personal injury, would your policy cover a claim, for example,
for accidentally saying something personally harmful on social media? It
depends on the scenario. Here are a few examples:
1: Your homeowner’s policy covers liability,
but does not cover personal injury liability. In this case, you would not be
2: Your homeowner’s policy specifically
includes personal injury, but the coverage was added in as an endorsement. If a
liability coverage amount appears on your policy, it might cover only physical
injury and property damage; it might not cover personal injury. To cover
personal injury, the added endorsement must specifically state the words “Personal
3: You have a deluxe type of homeowner’s policy
that automatically covers personal injury. These policies are typically
designed for large homes that are over a certain square footage and for
homeowners with more sophisticated needs. The cost of these policies is
slightly higher than a regular homeowner’s policy, and the policy often
includes a number of additional endorsements.
4: You have an umbrella policy. Many umbrella
policies automatically include personal injury coverage and drop down to first
dollar coverage. However, it’s never safe to presume this — be sure to confirm
with your agent.
the Bottom Line?
If you are active on
social media or even in your community, you are more prone to being sued. What
you say might be perfectly fine, but if someone feels your statement has
injured them, as innocent as you might have thought it was, that person can
file suit against you (with or without an attorney). The good news is that if
you have personal injury coverage, your insurance company will defend you
against such a suit at no cost to you.
In this case, you will be represented by one of the best attorneys to fend off false allegations, and you’ll save thousands in legal fees. If it turns out that something you said or the way that you said it leaves you liable for personal injury to another party, your insurance company will also pay the amount of the judgment, up to your policy coverage limits.
Agent for a Free Policy Review
Call your insurance agent
to find out if your homeowner’s or renter’s policy has personal injury
coverage. If it does not, this important coverage can be added for an
additional minimal cost. Be sure this coverage is listed on the declarations
page of your policy and that the appropriate provision is in the policy. Many
policies are sent via an electronic PDF file, and it’s easy to run a keyword
search in the document for the words “Personal Injury” to see if it is included
and whether you are covered.
Don’t wait until
after you’ve been served with a lawsuit and it’s too late — call your agent