Georgia Auto Insurance

Family accounts often exist with all vehicles titled in the parents’ names. However, sometimes, one of the children will acquire a vehicle in his or her own name while they still reside in their parents’ household. This scenario is not necessarily problematic, in and of itself. However, if the child vehicle-owner leaves the parents’ household without being a Named Insured on his or her own personal auto policy, coverage gaps can arise. It’s important to know about these gaps in coverage to protect your self from having a claim denied.

In a nutshell, the gaps in coverage arise when the child vehicle-owner moves out on a permanent basis and becomes involved in an accident while operating a non-owned vehicle. The child vehicle-owner, no longer meets the definition of a “family member” on the parents’ policy, as he or she has moved out of the parents’ household. Therefore, the child can no longer be considered as an “insured” . Should he or she drive an uninsured or underinsured non-owned vehicle, in the event of a loss, the child vehicle-owner could find him or herself inadequately protected.

So what can you do as a customer to avoid this type of surprise? If a vehicle is added to an auto policy, it’s always a good idea to disclose who the titleholder is. If the child is the owner, the agent should write a separate auto policy for that child for the vehicle the child owns, preferably with matching limits carried by the parents. Then, should the child move from the residence premises, with or without your knowledge, the child will not have the above-described coverage gap because he or she will be the named insured of their own auto policy.