by California Casualty | Auto Insurance Info, Finances, Homeowners Insurance Info |
Maybe you got married—or divorced. Perhaps a nanny moved in, or your son or daughter moved out. When major life changes like this happen, it’s time to look at your insurance policy. If you need to add or remove someone, here’s what you need to know.
Who must be listed on your policy?
Car Insurance
For car insurance, you must list all people in your household. Your list will include family members but also a roommate, relative or nanny who lives with you. They are added because they live with you, not because they drive your car. It varies from state to state but you may be able to exclude those individuals who won’t drive your car.
- Excluded from rating: If a person meets underwriting guidelines and has coverage elsewhere, they will be listed on the policy but excluded from a rating. That means no premium will be charged for them.
- Excluded from coverage: If the person has an unacceptable driving record, they will not meet underwriting guidelines and will be excluded from coverage. A signed document is usually required.
Some states do not allow you to exclude any drivers, and others will not allow exclusions of drivers who are acceptable. Still other states will not allow the exclusion of a family member or spouse. For details on excluding someone from your policy, see the section on removing someone from your policy.
Homeowner’s Insurance
For homeowner’s insurance, the policy must be in the name of the person who owns the home. That person’s name is listed on the title. If another person, spouse or not, has their name on the deed/title and they live in the home, they will be added as a named insured.
Adding someone to a car insurance policy
You can either call your insurance company or log into your account online to add a person to your policy. You will need their:
- Name and date of birth
- Driver’s license or permit
- VIN for the vehicle(s) that they are driving
- Number of years that they have been driving
- Driving record, including any accidents or violations
Your insurer will then give you a cost quote for the additional driver. Ask your insurer for ways to save money while bundling or with other discounts.
Removing someone from a car insurance policy
If someone on your policy no longer lives with you and/or no longer drives your car, that’s a good time to remove them.
- You will need to provide proof that the individual no longer lives with you.
- If your loved one has passed away, you will need to provide the death certificate.
- If the person still lives with you, your insurer may require you to keep them on the policy or show proof of their own insurance.
Special situation: child away at school
If your child is away at school, and you are expecting that child to return for breaks, this is not the time to remove him/her. If your child has a car that will be kept at home and not driven while he/she is at school, ask your insurance company whether you qualify for a discounted rate. If your child is over 100 miles away without a car, you may receive a discount.
Children away at school are automatically covered by your policy, so you are not able to remove them. However, as your children age and move out, that will change. When should you remove your child from your policy? It really depends upon your unique situation and needs. While there is technically no age limit for children on a policy, many insurance companies require children get their own policy once they are no longer a dependent, even if they are still living with the insured.
Excluding a driver vs. removing a driver:
Some insurance carriers allow you to exclude a driver, even if they live with you. Excluding a driver means that they will not be covered while driving any vehicles. You may be able to exclude a driver for an unacceptable driving record, and therefore reduce your premium. Note that there will be no coverage of that person driving your car even in an emergency, and if that person is discovered to be driving your car, your insurer may decide to increase your premiums or decline to renew your policy. It’s important to note that if the excluded driver does drive and has an accident, you, the insured, will be responsible for paying for all the damages/injuries out-of-pocket. That includes any damages/injuries that occur if they are driving someone else’s car too.
Adding someone to a homeowner’s policy
The homeowner’s policy is held by the person or people whose names are on the title/deed of the home.
- You may add your spouse as a named insured on your policy if they are on the title/deed. Depending upon your spouse’s claim history, note that this could raise your rate.
- If you’re not married but living together, and the non-married partner’s name is on the deed/title, you may add them as a named insured.
- You may want to adjust personal property coverage if your new spouse has items that increase the value above what is currently on your policy.
- You must be named on the policy to file a claim.
Removing someone from a homeowner’s policy
If you are the primary homeowner listed on the policy, you may remove someone from your policy. Traditionally, this happens during a separation or divorce. A homeowner’s policy can be maintained during a separation, but should be changed as soon as the divorce is finalized. At California Casualty, we typically wait until the divorce is final and/or the policy renewal date to move property policies from one account to another.
- Only a named insured on the policy is authorized to make changes. Ideally, the changes should follow the separation agreement.
- The effective date the change takes place depends upon your policy.
- The spouse who moves out, but is still on the deed, should be named as an additional insured.
- Your homeowner’s policy should be listed under whomever keeps the house.
Adding or removing someone to a renter’s policy
You’re often able to add coverage for a partner or roommate to your renter’s policy if they move in. There are three main ways to do this.
- You can add coverage for a roommate for an additional cost. You can do this on a homeowner’s and renter’s endorsement called “Other Member of Your Household.” Some states do not charge a premium for this. You can remove this person at any time, with no notice given to them.
- Unless you are married, you cannot add a significant other as a named insured.
- You can ask the person to get their own policy. Separate policies mean each of you has the full amount of liability coverage if you cause a loss.
Having the right coverage gives you peace of mind. Make sure you are protecting your greatest investments.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
by California Casualty | Auto Insurance Info, Finances |
You accidentally bump the car in front of you. Luckily, there’s not much damage. You pick up the phone to call your insurer. Wait a minute. Will filing a claim for this accident save you money or cost you in the long run? Filing a claim may have consequences down the...
by California Casualty | Auto Insurance Info |
Your son or daughter has graduated college and is ready to start his or her adult life. Is now a good time to take them off your car insurance?
It’s a decision that many parents tend to put off. Unlike health insurance, there is no maximum age for children on a vehicle policy. As long as they live with you, and drive a car you own, they could remain on your policy indefinitely. However, you may also choose to remove them, and that’s the case even if they do live with you. Here are some reasons why you might consider it.
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- It will likely save you money. It is more costly to insure younger, less experienced drivers and so removing them from your policy will likely lower your premium.
- It will teach your child responsibility. Car insurance premiums are usually among the first bills that a young person is responsible for paying.
- It can improve their credit score. Paying the premiums on time will help build your child’s credit score.
- You both may qualify for a multi-vehicle household bundles or discounts.
- In some cases, children move to a new address and don’t update their auto insurance right away. Getting your child his or her own policy will ensure that there is no gap in coverage when they move out.
When you need to remove your child
If you’re thinking about removing your child from your auto policy, read on. We’ve compiled a list of situations when it is recommended that young adults have their own policy.
Your son or daughter no longer lives with you.
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- Your policy is tied to your home address. If your child has moved away, they can’t be on your policy.
- If, however, your son or daughter is simply living at college, their home address is likely still yours. That allows them to remain on your policy, with some modifications.
- If the college is enough of a distance away, and they are not driving, the insurance premium may be temporarily discounted or reduced.
- If they take their car to college, the new location will be incorporated in the premium quote.
Your son or daughter is covered under another auto policy.
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- The car that your child drives can only go on one policy. If your son or daughter is covered under another policy, such as in cases of separation or divorce, you do not need to pay for a second policy.
- If your son or daughter lives mostly at one location, your teen may be listed on the policy at that home.
- If your son or daughter regularly parks his or her car at both parents’ homes, your child will still be covered at both locations under one policy.
Your child has bought his/her own car.
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- Insurance companies generally require that any vehicles on your policy be in the primary policyholder’s name.
- If your child buys his/her own car, the insurer may require a separate policy.
- If you do not get a separate policy, then you remain the primary policyholder. If your child gets into an accident with his/her car, and the claim is covered, the check will be written to you.
How to remove your child from your policy
1. Contact your insurer. Ask to have your child removed from the policy.
Insurance companies usually require you to list all household members of driving age when you apply for, or renew, your policy. If your child gets his or her own policy, and still lives at home, you will need to exclude them from your coverage. That means they won’t be covered in an accident even if they had an occasional use with permission. Note that you may be charged a fee or excluding a driver that lives in your household.
2. Provide proof of other insurance.
When you remove your child from your policy, your insurer will require proof that your child has his/her own policy. You can choose to get a new policy with your current insurer and maybe take advantage of household discounts. You also could change insurance companies. Make sure to set up the timing so that one policy kicks in when the other one lapses.
3. Provide proof of new address.
If your child has moved to a new address, your insurer may ask for proof of residence. This may include a utility bill or other authorized mail.
Talk to your insurer about options so that you can find the best fit for your family, and also meet state and insurance requirements.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
by California Casualty | Finances, Homeowners Insurance Info |
Homeowner’s insurance helps to protect your most valuable investment—your home. But homeowner’s policies can vary in cost, depending on where you live and what you’re insuring. Following are homeowner’s insurance costs explained so that you can make decisions about your specific needs.
Why you need homeowner’s insurance
If you have a home mortgage, you are required to have homeowner’s insurance. Even if you don’t have a mortgage, it’s recommended that you have insurance to protect your home.
Simply put, homeowner’s insurance provides coverage:
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- In case your home or belongings are damaged
- In cases of fire, wind, snow and other covered perils
- In case you are held responsible for an accident or injury
How much coverage you will need depends upon your location, the size and scope of your home/dwelling, other structures on your property, and your personal belongings. You don’t want to shortchange the amount of coverage, or you may not have enough to rebuild your home or replace your possessions in the event of a claim.
Note that homeowner’s insurance is not the same as mortgage insurance. Mortgage insurance is required when you put less than 20% down when you buy your home. Mortgage insurance protects the lender. Home insurance protects your home.
Location
Depending on where you live, you may face different types of risks which can affect your home. These include extreme heat, drought, fire, and severe storms. Your insurer will take those risks into account when pricing your policy.
There also are natural disasters such as flooding and earthquakes which are not covered by homeowner’s insurance. You can add these coverages with a separate policy or an endorsement added to your property policy.
Dwelling Coverage
Coverage A, dwelling coverage, covers the structure of your home. This includes the roof, walls, floorboards, cabinets and bath fixtures. Essentially, if you could tip your house upside down, it would cover everything that remains attached. Under dwelling coverage, your insurance provider will pay to rebuild your house if the structure is damaged by a covered peril. Coverage for the dwelling and other structures is categorized as “open perils,” meaning it’s covered unless it’s excluded. Building materials like hardwood floors, gourmet kitchens, granite counters, and tile roofs are all factored into the appropriate amount of insurance you would be offered under dwelling coverage.
Especially in periods of economic inflation and building supply or labor shortages, the true rebuild cost of your home may be substantially higher than the market value and even much higher than the cost of building a new house on an empty lot. If your insurance provider hasn’t recalculated the cost to rebuild your home recently, then you may be at risk of running out of coverage if you experience a total loss. That’s why it’s good to periodically check with your provider to make sure you are fully covered.
Other Structures
You may have a swimming pool, shed, detached garage, or fence. These are other structures that can be damaged and therefore need to be included in your insurance policy. Other structures coverage will cover damage to these structures that is not specifically excluded in the policy.
The coverage limit for other structures is generally set at 10% of your home’s coverage limit. That means if your home is insured for $200,000, the coverage limit for your detached garage would be $20,000. For an additional premium, you can add an endorsement for additional coverage.
Personal Property Coverage
Personal property coverage protects your possessions. If they are stolen, or damaged by fire/smoke or any of 16 named “perils,” your policy will pay for them subject to your deductible. There are dollar limits for theft of certain items, such as jewelry and firearms.
You may choose the replacement cost or the actual cash value (ACV) for reimbursement in personal property coverage. ACV is the amount the item is worth, minus depreciation for its age. It will cost a little more for a policy that provides replacement cost since that is higher than ACV.
Liability Coverage
Liability coverage includes two coverages: Coverage E – Personal Liability and Coverage F – Medical Payments to Others.
Personal Liability protects you if a claim is made or a suit brought against you for bodily injury or property damage caused by an occurrence to which coverage applies. An occurrence means an accident, which results in Bodily injury or Property damage. If you are found liable, the policy will pay up to its limit of liability for damages for which an insured is legally liable. This can include medical expenses, lost wages, pain and suffering and permanent scarring. The policy also provides a defense in court, if needed, for the policyholder. This is at the insurance company’s own expense.
You want to make sure you have enough coverage to protect your assets – a minimum amount is $100,000. Liability covers you at your place or anywhere in the world. For example, if your dog bites someone, you’re covered. The policy pays for the bite victim’s medical expenses and covers court fees if they sue you.
If you are not liable, but your guest was injured through his/her own fault, then Coverage F – Medical Payment to Others may cover your guest’s medical bills. Under Coverage F, the insurance company will pay the necessary medical expenses to a person injured on the insured location with the permission of an insured, or off the insured location if the injury is caused by the activities of an insured or caused by an animal owned by an insured.
Additional Living Expenses
If your home is damaged in a covered claim, it may not be livable. If that’s the case, you would need to stay somewhere else. You would be covered for any necessary increase in living expenses, such as lodging, food, and gas. Under Coverage D – Loss of Use, called “Additional Living Expense,” your policy will provide a flat percentage toward living costs, usually 30% of the Coverage A amount. Some states have time limits (e.g. 12 months) on when you can use that coverage. Plan to cover those additional expenses out-of-pocket.
Deductible
Generally, the higher your deductible, the lower the cost of your insurance premium. Since the deductible is the amount your insurance provider will subtract from an insurance payout, you’ll have to select a deductible that you’re comfortable paying out-of-pocket after a loss.
Other Things That Affect Cost
Finally, there are other items that can affect the cost of a policy. Your insurance claim history could be factored in. If you have a number of past claims, or the home you are trying to insure has a number of claims, your rate could be higher. The age of your home and condition of your roof may be taken into account.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
by California Casualty | Auto Insurance Info |
You don’t have to wait for your auto policy to expire to change insurance companies. However, you do need to make sure you’re fully covered without any gaps in insurance. We’ve compiled some guidelines to help you decide if a change is right for you.
When should you think about changing policies?
While you don’t need a reason to change your auto insurance, there are some times when it makes sense for you to revisit your policy—even if you don’t change insurance companies. You may end up modifying your current policy to meet your evolving needs. For example:
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- If you’ve had a major life change, such as getting married or divorced, you may need more or less insurance.
- If you’ve moved to a new zip code or state, the new location could affect your premium.
- If you’ve become a homeowner, you can bundle your auto and home and save money.
- If you’ve gone from working out of the home to remote work, your annual mileage may be less.
- If you’ve bought a new car, you will want to check insurance policy options.
- If your teenager is about to get his or her license, that will add to your policy.
- If your credit score has improved, you may qualify for a lower rate.
- If you’re unhappy with your current insurer, you can consider a change.
- If you’re approaching your renewal date, you can terminate a contract without cancellation fees.
Follow these steps to make the change.
Step 1: Consider your coverage options.
Figure out how much coverage you need. If you depend upon your care, you want to make sure that you have enough to replace it if necessary. Also, check your state laws. Some states will require you to have certain car insurance. If you lease or finance a car, your lender or lessor will require you to purchase collision and comprehensive insurance.
Step 2: Compare quotes from multiple insurers.
Get quotes from several insurers, and make sure you are comparing the same coverage, limits and deductibles. Sometimes policies are cheaper because they don’t have the same coverage. This is also a good time to contact your current insurer to find out about discounts, or other ways to lower your cost. California Casualty offers discounts to nurses, educators, and first responders.
Step 3: Check for penalties and perks.
If you’re in the middle of your policy contract, there may be a penalty for canceling. Make sure you figure that into the decision to switch. You also will want to look for the perks, or little extras, that are offered. Some insurers offer inexpensive roadside assistance or accident forgiveness for qualified customers. Some have smartphone apps or are available 24/7 online.
Step 4: Do your research.
You want to know how your new insurer handles claims, and whether they have a good customer service rating. It may not be worth a lower price if it’s going to be a hassle dealing with the new company. Check out your insurer with the Better Business Bureau, JD Power, or the National Association of Insurance Commissioners.
Step 5: Make sure there’s no gap in coverage.
Car insurance lapses can be expensive, especially if you have an accident on the day in between. If you cancel one policy, make sure the other one is already in place. Your new insurance company can provide proof of insurance to your old company. However, they cannot cancel your policy. You need to do so. You’ll receive a refund for any unused portion. There may be a cancellation fee.
Pro Tip: Also remember to cancel automatic payments to your old insurer with your bank or credit card.
Step 6: Notify your insurer and lender.
Make sure to officially cancel your policy with your old insurer. Otherwise, your insurer will think you simply stopped paying your bill, and you could be liable for charges. Some insurers require 24 hours before canceling, so make sure you are aware of the terms. Also let your lender or lessor know about your new insurance if you are leasing or financing your car.
Step 7: Replace your insurance ID.
Once you make the change, ask for a digital copy of your insurance card. You can also order a printed card. Remember to place your new insurance card in your car’s glovebox.
Finally, if you have an open claim, wait to make a change.
You may not be able to change insurers if you have an open claim with your current insurance company. The claim has to be paid and closed. Also, the rate quoted from your new insurance company may not take into account that most recent claim. If that’s the case, you could have a big increase when you renew with the new company, or even be responsible for a retroactive fee.
Get started with a free quote today at mycalcas.com/quote.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
