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Why you need umbrella insurance if you have a teen driver

Let's be honest – this is one of those articles I NEVER wanted to write. There is nothing good that comes when a teenage driver you insure is killed in a car accident. This is the most horrible situation I have ever experienced in many years of the insurance industry.

The reason I am writing is simple: to tell the story so that parents of teenage drivers can do their insurance program the best it can be should, God forbid, the same thing happen to them. Because I can think of nothing worse than losing your child in a car accident AND having to worry if you have enough insurance coverage, AT THE SAME TIME.

Here's what happened ̵
1; car accident

It was a nice autumn day, with decent visibility. Our insured's teenage driver was on his way. For reasons still unknown, he went left from the center and hit an oncoming car. Our driver was killed instantly. The other driver was seriously injured and was flown to a high-level trauma center for multiple bone fractures and internal injuries. Although I do not know all the details, I'm pretty sure there were many surgeries and a longer stay in the hospital. I am very sure that there will be significant rehabilitation for many years. So it does not take much effort to calculate that the cost of this medical care will easily amount to hundreds of thousands.

Fortunately, our customer had taken our advice and purchased a personal umbrella insurance from Ohio while he purchased the policy for personal cars and homeowners.


When the claim was submitted in accordance with our customer's auto policy, the operator automatically opened a claim for damages. Why? They also know that a claim on this level of difficulty will equate to high medical bills.

UPDATE: The claim was finally settled for $ 286,000 under the car policy and $ 750,000 under the umbrella for a total of $ 1,036,000. Yep – you read that right – over $ 1 MILLION.

The Top Two Reasons Why You Need Ohio Personal Umbrella Insurance If You Have a Teen Driver $ 100,000 per person and property damage limits of $ 100,000. WHAT ????? Yes, a policy boundary is a boundary. So if the accident is bad enough to take up the limit, the insurance company's obligation is clear when this limit has been reached. In this case, when $ 250,000 and / or $ 100,000 are spent, the insurance company is ready and you have to pay the balance out of your own pocket.

Let's do a quick math – you potentially have $ 350,000 available on car policy (250,000 + 100,000). The claim was 1,036 million. That would give you $ 686,000 to pay out of pocket. YIKES!

Cause 2

Following this line of thinking, many people would find it difficult to pay that balance. What does a person do? Start selling things to raise money. Maybe things like a motorcycle, boat, motorhome, holiday property, vehicle or in the worst case your own home. You may need to make money in retirement accounts. Salaries may need to be garnished to pay what is owed. You can come up with a million scenarios, but whatever the situation, the end result is that you will lose a lot of time.

Facts about car accidents for teenage drivers

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

  • In 2016, there were 1,908 young drivers 15-20 years old who died in motor vehicle accidents.
  • In 2016, drivers involved in fatal accidents accounted for 39% of the fatalities in these crashes.
  • Of the passengers who died in crashes with young people driving, 64% were also 15-20 years old.

These statistics were taken from the 2016 Road Safety Facts with permission from the National Highway Traffic Safety Administration. You can read the full report on the NHTSA website.

How much does it cost to include a teen driver on a personal umbrella insurance policy?

Okay, we know that from within you understand what we're saying, but if it costs a million to get a million, it's just not possible. Although premiums vary by insurance company, we typically see a cost of $ 100 per year per teen driver. If we break it down per month, it's less than $ 9 per month.

It's IT. So even if, yes, this is a cost to you, think of the cost to you in the absence of the personal umbrella, as the story above ($ 686,000 !!!!!!!) =. And do not say "It will never happen to me", because it does. The family mentioned here is just an ordinary, everyday family.

Do you have a teenage driver and are worried that you do not have the right insurance coverage for your family? Call us at (937) 592-4871 or fill in the form below and we will be happy to review your insurance and remove your concerns.

If you are interested in reading more about Ohio personal umbrella insurance, here is another helpful article:

What is not covered by a personal umbrella insurance?

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