How will my premium be affected if I file a claim for my child then drop them?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Aug 24, 2015
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Chicago, IL
Asked on 08/24/2015
How will my premium be affected if I file a claim for my child then drop them? I have a car and my child has a car. She recently got into an accident. The damage to the car she hit is $2000. How will my premiums be affected if we file a claim with the insurance company for her and her car, then drop her from the insurance as she is selling her car anyways and won't be driving anymore? Will my premium go up if I drop her? Thank you
Answer given on August 31, 2015
If your daughter’s car is insured under your policy and she caused an accident, you must report it to the insurance company so they can settle the damage claim for the other party. It will be considered an at fault accident and her rates will be affected. It is possible she will lose a good driver discount, depending upon whether she has other activity on her record and/or her driving experience.If you then sell her car, she will still be considered a driver in the household and her record will transfer to another car on the policy, presuming she lives in your household. You would have to specifically exclude her from your insurance policy to avoid any repercussions regarding her driving record.If your daughter has a separate insurance policy then the claim needs to be filed under her policy. It will not affect your rates. However, if she then sells her car but lives in the household, then the above situation will still apply regarding your rates.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.