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Why do you need personal umbrella insurance if you have a teen driver: A real story

I will be honest – this is one of the articles I never wanted to write. There is nothing good that comes when a teenage driver you insure is killed in an auto accident. It's the most terrible situation I've ever experienced over many years of the insurance industry.

The reason I write it is simple: to share the story so that parents' teenage drivers can make their insurance program the best it can be, God should forbid the same thing with them. Because I can't think of any worse thing than losing your child in an auto accident and having to worry if you have enough insurance, AT THE SAME TIME.

Here is the story:

It was a nice autumn day with decent visibility. Our insured's youth driver was on the road. For reasons that were still unknown, he went to the left from the center and met a coming car. Our driver was killed immediately. The other driver was severely injured and flew to a high trauma center for multiple bone fractures and internal injuries. Although I do not know all the details, I am pretty sure there were many surgeries and a long stay in the hospital. I am very sure that there will be significant rehab for many years. So it doesn't take much effort to figure out that the cost of this healthcare will easily reach hundreds of thousands.

Fortunately, our customer had taken our advice and bought a personal umbrella policy when he bought the personal car and homeowner.

What happened after the accident:

When the claim was submitted according to the customer's autopoly policy, the operator automatically opened a claim according to the umbrella policy. Why? They also know that a requirement for this severity will correspond to high medical bills.

Finally, the requirement for the entire political limit of $ 250,000 per person body injury was opened and another $ 100,000 under the umbrella. Fuzzy about the details of a personal umbrella? You can read our article What is personal umbrella insurance and how does it work to gain momentum.

The 3 Reasons You Need Personal Umbrella Insurance If You Have A Teenage Driver

1) If there was no personal umbrella policy, the insured would have paid that $ 100,000 in his pocket. VAD ????? Yes, a policy limit is a limit. So if the accident is so bad that it uses the border, once that limit has been reached, the insurance company's obligation is completed. They can go and you are left to pay the balance from your own pocket.

2) After this thinking, many people would have a tough time that only comes up with $ 100,000 to pay the balance of claims. What does a person do? Start selling things to raise the money. Maybe things like a motorcycle, boat, motorhome, vacation rental, vehicle, or at worst your own home. You may need cash in retirement accounts. The salary must be guaranteed to pay what is owed. You can come up with one million scenarios, but regardless of the situation, the end result will lose you something.
3) And of course the requirement is not settled yet and will not be any time. The final payout can be much greater than originally thought. The best thing is that the umbrella goes up to $ 1 million. Of course, the amount can still exceed $ 1 million, but it provides a level of comfort that would not be there otherwise. Parents are trying to distress the loss of their son – again, worrying about proper insurance coverage should NOT be one of their many concerns at a time like this.

Facts About Teenage Accidental Accidents:

It has been well documented that teenage drivers have some of the worst accident statistics – they are involved in the most crashes and the most serious. The reasons are great – lack of driving experience, distractions, alcohol or drugs, believe that they are invincible, etc. But whatever the cause, it is not a question, but when the accident occurs. Here are some of the most innovative facts:

  • In 2016 there were 1,908 young drivers 15-20 years who died in car crash.
  • In 2016, drivers who participated in fatal accidents amounted to 39% of the deaths in these crashes.
  • Of the passengers who died in crashes with young people who drove, 64% were also 15-20 years old.

These statistics were drawn from 2016 traffic safety facts publishing with the permission of the National Highway Traffic Safety Administration. You can read the entire report on the NHTSA website.

So how much does it cost to bring a teenage driver on a personal umbrella policy?

Okay, we know so deep inside you understand what we say, but if it costs a million to get a million, it's just not feasible. Although premiums vary from insurance companies, we usually see a cost of $ 100 a year per teenage driver. If we break it down per month, it's less than $ 9 a month.

That's it. So even if this is a cost to you, think of the cost to you in the absence of the personal umbrella, like the story above. And don't say "It will never happen to me" because it does. This latest event is an excellent example of an ordinary, everyday family.

Do you have a teen driver and are worried that you do not have the right insurance cover for your family? Call us at (937) 592-4871 or visit our website and we will be happy to review your insurance and get quotes that will remove your concerns.

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