Question

Would moving 19 year old child who is in college onto her own policy a smart move?

My husband and I are considering moving our 19 year old daughter onto her own policy. She is a responsible driver and has never had a ticket and the only accident she's had is a deer running into her car, which we did file a claim for. She is going away to college out of state and we would pay her premiums for her. We are considering this to minimize liability risks for us. We have worked hard for what we have and want to protect our assets. We know the premiums for her on her own would be more expensive than if she were on our policy, but we thought it would bring peace of mind that if something were to occur, we would not risk losing our property in a lawsuit. She basically would only own her car and that's it , so it wouldn't be likely that someone would come after her personal assets being that she really doesn't have any. Are we thinking this through correctly or would we still be liable since she's a college student and not financially independent? Are we still at the same level of risk? Thanks

Aug 19, 2018 Watkinsville, GA

Answer
Ava Lynch

Aug 19, 2018

You are definitely thinking this through correctly. It's funny because a lot of parents do not consider the risk. Since she is an adult and if she had her own policy she would be the one liable in an accident. You are also right when it comes to the premium. Most of the time the premium is more expensive for her to be on her own policy. Sometimes it can be cheaper because she wouldn't really need the higher limits that you have to protect your assets since she doesn't have assets to protect. Another factor will be the fact that she will be in another state. Insurance varies by state so the new state she will live in may have lower rates than where you live currently. Either way, I would recommend for her to get her own policy if you are wanting to protect your assets further. Good luck and if you have any other questions, don't hesitate to ask.
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