This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Cut High-risk Husband Off Your Insurance Policy





Question: My daughter needs to buy car insurance, but the companies she has tried so far won't allow her to because her husband has a lot of tickets, which he owes money on, and has a suspended license. He is also in jail, so he isn't going to correct the issues anytime soon. She needs reasonably priced insurance for herself in Florida. What can she do? 

Answer: Your daughter should look into excluding her husband from her car insurance policy so that she can find affordable car insurance rates.

Auto insurance companies typically take into account all licensed household drivers when calculating rates, and it appears your daughter's husband's issues are causing her to be turned down for auto policies, or obtain reasonable rates.

She needs to take her husband out of the equation.  (See " When a good driver marries a bad one")

Insurance companies determine rates based on various rating factors, with a major one being your motor vehicle record.  If it shows that a driver on your policy has multiple traffic violations, then it's going to raise your rates.  If any of the violations are major offenses, such as reckless driving or DUI, then that will make the rates go even higher.

Thus, a mate who has a bad driving record, let alone a suspended license, can put the whole household into a high risk insurance tier -- and the bigger the risk, the higher the car insurance rates.

If your daughter signs a named driver exclusion form with a car insurance company, she will be able to keep her husband from being rated on her car insurance policy as a driver, which, if she has a decent driving record, should bring down her rates substantially.   

Not all states allow named driver exclusions for spouses, but luckily for your daughter, Florida does permit it.  Since not all auto insurance providers will offer to exclude drivers, she will have to shop around to find one that will. 

No coverage means no coverage. Really.

By signing the exclusion on her spouse, it means that when he gets of jail and comes home, he would be unable to drive the insured car since there would be no auto insurance coverage extended to him.  If he drove the car while excluded and was in an accident, the couple would be held personally responsible for all the damages they caused. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs