How to Prepare for Teen Drivers (7 Bulletproof Steps)

How to Prepare for Teen Drivers (7 Bulletproof Steps)
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    Having a young driver in your family offers some great opportunities,
    as well as some serious financial risks and exposures.
    How should a parent prepare for the day when their child is about to start driving?
    Here are the the top Seven Most Commonly asked questions by parents
    about the financial risks and exposures they have when their teenager starts to drive:
    Who should sign my child's driver's license, and why does it matter?
    Should I add my child to our existing family car insurance policy
    or should the child have their own insurance policy?
    What if I get my teenager their own car insurance policy,
    and they borrow or use a family car? What happens if there is an accident?
    What kind of automobile insurance should I get for my child?
    Does the age of a car I buy for my teenager affect the insurance premiums?
    Won't an old car save us money?
    Should I put my child's car in my child's name,
    or my name, or both, or neither?
    What are a few things I can do to help my child
    become a good and responsible driver?
    Did you know there are over Seven Hundred and Fifty Thousand
    Teenage drivers on the Florida Roads today?
    This is according to the Florida Department of Motor Vehicles.
    And the statistics from the Florida Department of Highway Safety and Motor Vehicles
    tell us that Car Crashes are up by 57% in some Florida counties.
    Traffic deaths have increased by 28 percent since 2012.
    The increase in car crashes and motor vehicle deaths
    are attributed to distracted driving.
    These are scary statistics,
    Especially for a parent of a teenager
    who is about to get their driver's license.
    Teenage drivers unfortunately are the least experienced
    and most distracted drivers on our roads.
    Texting is deadly dangerous.
    Distractions, such as Snapchat, Instagram,
    Facebook, and GPS systems are all dangerous.
    And it is not just cell phones.
    Friends in the car are a common distraction leading to a deadly crash.
    But at the same time, a cell phone can help with directions,
    and avoiding traffic - apps like Google Maps, Ways,
    and other things can help a young driver,
    but at the same time distract them from looking ahead and keeping their eyes on the road.
    Knowing the financial risks,
    and exposures you have as a parent of a teenage driver is important.
    As a parent, you MAY be 100% responsible for any and all damages your teenager causes.
    And there are many factors to consider,
    Let me get started with the first of the Seven most common questions
    parents have about a teenager getting their driver's license and starting to drive.
    Question #1
    Who should sign my child's driver's license,
    and why does it matter?
    Okay, here is the deal.
    The parent who signs their child's driver's license is on the hook
    and equally responsible for any, and all,
    damages the child may cause while operating a motor vehicle
    until their child's 18th birthday.
    This is the Florida law.
    The parent who takes their child to the DMV
    to get the child's driver's license and signs on their child's driving permit
    becomes One Hundred Percent liable for any and all injuries, death, damages,
    property damage that their young driver may cause
    up and until the child become an adult.
    So, which parent signs the driver's license is something to consider.
    Question #2
    Should I add my child to our existing family car insurance policy
    or should the child have their own insurance policy?
    The bottom line is this,
    you should keep your child on your family car insurance policy.
    Yes I know, you may be shocked at the increase in price when you add a child.
    You may be thinking, "well, I have a great driving record,
    I have not made a claim in years,
    and I don't want to mess up my great insurance policy by adding my child to it"
    But as I go down the list it will become clear
    why you should add your child to your existing automobile insurance policy.
    The main reason why it is a good idea to add them to your policy
    is because No matter what car your child drives, they are covered!
    Question #3
    What if I get my teenager their own car insurance policy?
    This sounds like a good idea at first,
    but here is the danger.
    When you get a separate car insurance policy for your child,
    and then for some reason like; their car breaks down,
    they have to borrow the family car to get to school, work or anything,
    and have a wreck in the family car.
    Well, your family policy will say that your child was EXCLUDED from your policy,
    and therefore the family insurance policy will not pay one cent for any damage.
    Boom, big problem.
    What this means is if and when your child uses the family car you are uninsured.
    And here is why:
    Because your child is defined as a resident relative,
    most policies will deny coverage.
    You most likely will be 100% responsible for all the damages
    and have NO INSURANCE to defend you or pay the damages at all.
    This is why putting your child on the family policy
    prevents this sort of financial exposure and ruin to you.
    Question #4
    What kind of automobile insurance should I get for my child?
    You need to know that the
    Mandatory Minimum Insurance coverage is not enough.
    And sometimes people,
    even insurance agents call the Mandatory Minimum Insurance "Full Coverage"
    This is a huge misstatement.
    Mandatory Minimum Insurance that is required in Florida is a joke.
    The law says the owner of a vehicle must have at a Minimum,
    $10,000 worth of Property Damage Insurance,
    which will pay to fix other people's cars, or property.
    And in addition to the property damage,
    the policy must have $10,000 of PIP, or no fault insurance.
    To be clear, that is all the insurance required by law, Property Damage and PIP.
    PIP or No fault insurance for the most part is medical bill insurance
    to pay the first Ten thousand dollars of medical bills to the people in the car,
    if they are injured.
    So, if you buy the Minimum insurance for yourself,
    your family, or your child, and there is a serious crash,
    then your insurance will only pay the first ten thousand dollars of property damage,
    and Ten thousand dollars worth of medical bills for the occupants of your car.
    That is it!
    Here is what will NOT be paid with the "full coverage / mandatory minimum insurance" scenario:
    Your insurance company will not pay:
    For any property damage over ten thousand dollars.
    How much do cars cost these day?
    If your child is involved in a crash that is their fault,
    and they damage another person's vehicle and it is an expensive one,
    well, your insurance company will pay out the first
    ten thousand dollars and you will likely be responsible for everything else.
    You may think, well,
    okay my child t-boned that expensive car and totaled it,
    but the other person has good collision insurance,
    and that person will be paid for the loss to their car.
    And my insurance company will pay some,
    so in the end it will all work out.
    But here is the catch.
    The insurance company who paid to replace that expensive car,
    well, they may file a lawsuit against you and your child
    to recover the amount they paid to fix their insured's vehicle.
    This is called a right of subrogation.
    Here is what else won't be paid if your child is at fault for a serious crash,
    your insurance company won't pay a penny
    for the injuries that were caused by your child to other people.
    For example, what if your child makes a simple mistake
    and crashes and causes a brain injury to someone, or a spinal injury?
    The list of serious injuries can go on forever.
    The damages may reach into the millions of dollars.
    My point here is get Bodily Injury Insurance,
    to protect you, to protect your child, and
    To protect your family from financial ruin that can
    easily be caused a moment of distraction by a young driver.
    What does insurance do?
    What do you get for your premiums?
    What are you paying for?
    You get two things: Indemnity and Defense.
    What is Indemnity?
    Well, this is the amount the insurance company agrees to pay for a loss.
    This is basically the policy limits.
    It is sort of like buying sugar, you can buy as much as you want,
    but you only get as much as you pay for.
    So, Indemnity is the AMOUNT of coverage you purchase.
    The Second thing you are paying premiums for is A Defense.
    This means is your insurance company agrees to defend you when a claim is brought.
    Insurance companies have tons of insurance adjusters
    who are supposed to gather as much information as they can about a claim,
    figure out who is at fault, and what the damages are,
    and then try to "buy" you a release.
    What does "Buy you a Release" mean?
    Their job is to pay up to your insurance policy limits
    (the amount of indemnity) to obtain a signed and full release
    of any and all claims against you.
    So, imagine, a collision happens, you or your child is 100% at fault.
    And assume the following are the damages:
    $4,500.00 to fix the other person's car.
    $15,000.00 to pay the other person's injury claim.
    And if you only had the mandatory minimum insurance coverages,
    your insurance company would write a check to the other person
    for the property damages for $4,500.00 and get a release for property damages.
    This is a good thing,
    because the damages to the other people's property can be paid by your insurance company
    and they get a full release for the property damages.
    But the problem is you are still personally on the hook
    for all of the bodily injury damages.
    So, one thing you may think, is well, heck,
    me and my child don't have anything to go after
    and if we don't pay the bodily injury damages, nothing bad will happen,
    because no good personal injury lawyer will sue us,
    because we don't have any money to collect.
    Well, this sounds pretty good right?
    You are not a target since you are not worth suing.
    However, let me tell you about UM.
    Uninsured Motorist Insurance,
    This is the most important insurance you can buy.
    And imagine if the person your child injured, has UM insurance.
    And the UM insurance company paid $15,000.00 for the bodily injuries.
    so the injured person is now made whole by their UM insurance company,
    but now the UM insurance company sues you and your child
    asserting their right of "subrogation."
    Why this happens is because the UM insurance company
    that paid their insured the full amount of their damages,
    has the right to sue any at fault party's to get their money back.
    So, one day, you and your child each are served with a lawsuit
    in which the company suing you is the uninsured motorist car insurance company.
    They sue you and your child to get their $15,000.00 back.
    And when you notify your insurance company,
    they say, too bad, we won't defend you,
    you are on your own because you did not pay for Bodily Injury Insurance.
    When you don't do anything to defend yourself in court,
    the insurance company will get a judgment against you and your child,
    for the full amount of what they paid, plus court costs.
    And once the judgment is 30 days old,
    they will send a copy of the judgment and the crash report
    to the Florida Department of Motor Vehicles, and say,
    "hey the owner and driver of a vehicle caused bodily injury damages,
    and they owe us money"
    And the Florida Department of Motor Vehicles will send you
    and your child a letter saying to pay $10,000.00 to satisfy the judgment,
    or YOUR driver's license will be suspended.
    What? you say? I had insurance, it was not my fault my kid caused a crash,
    we were insured, we had "full coverage" and now I don't have a driver's license,
    and if I drive and get pulled over,I will go to jail?
    How did things spiral so out of control?
    So, back to the question,
    what kind of insurance should you have?
    Property Damage
    Which is required by law,
    but please get more than the minimum ten thousand dollars
    PIP No Fault
    Which is required by law
    Bodily Injury Insurance
    Which costs extra.
    Buy as much as your net worth excluding your home.
    Medical Payments
    Which costs extra and pays medical bills after PIP runs out
    Uninsured Motorists (stacked)
    Most important and valuable insurance you can purchase
    because it pays you when you are hit by an uninsured motorist.
    Umbrella Insurance
    A separate insurance policy which
    adds extra coverage to you and your family
    Then add Uninsured Motorist to your Umbrella policy
    If you can afford an Umbrella policy,
    it does not cost much more to add UM to your umbrella
    This is the gold standard of coverage
    you need to fully protect yourself,
    your child and your family's financial future from ruin.
    Question #5
    Does the age of a car I buy for my teenager
    affect the insurance premiums?
    The Simple Truth is this:
    Buy a modern car and you will save money on your insurance.
    Here is why.
    When you buy the safest modern car you can afford,
    the risk of a crash goes down, and the severity of injuries is less.
    You want a car that is safe for your child to drive.
    You want one with the latest safety features, airbags,
    automatic braking and crash avoidance.
    This may very well save your child's life
    and save money on car insurance at the same time.
    Yes, the car is more expensive,
    but the insurance premiums will factor in the safety features.
    The insurance industry realizes that if you buy a safer car that avoids a crash,
    or reduces the severity of injuries,
    then they have to pay less on a claim.
    So the premiums should be lower.
    Question #6
    Should I put my child's car in my child's name,
    my name, both names, or neither of our names?
    The answer should consider this:
    There are up to three people who can be sued for a car crash:
    The First person is always the
    driver of the vehicle causing the crash,
    Second person who can be sued is
    the Parent who signs the driver's license of a driver
    who is not 18 years of age. and
    The owner of the vehicle causing the crash.
    As a parent what can you do to protect yourself?
    One way to reduce your risk is to not own the car,
    and put the car in your child's name but you may
    lose control of the vehicle since it is not in your name.
    If you put the car in your child's name only,
    you have very little control over the car,
    such as taking driving privileges away.
    You lose any right to possess the vehicle,
    because your child owns the car and can do what they want with it,
    sell it, lend it to a friend who is not a safe driver, etc.
    The other thing to consider as a car owner
    is the financial risk an owner has.
    Imagine you own a car and someone borrows your car,
    and causes a crash,
    how much exposure do you have under the law in Florida?
    As an owner of a vehicle you are exposed up to
    the first one hundred thousand dollars of damage
    caused by the negligence of the driver of your car.
    This is why you want to carry at least
    one hundred thousand dollars of bodily injury insurance on all of your cars.
    And remember,
    as a parent who signs your child's drivers license permit,
    you don't have this one hundred thousand dollar limit,
    this why you might consider carrying more
    than One Hundred thousand dollars of bodily insurance coverage.
    Ownership of a car has risk and exposure.
    When does it make sense to put the car in the child's name?
    The day they turn 18 years of age.
    Say, Happy Birthday son,
    and transfer the title of your car to your child.
    You have to go to the DMV and transfer the title
    to remove your name and your responsibility from the car title.
    You say to your child:
    Yes, you, and you alone, are the sole owner of your car.
    Please keep being a careful, responsible and safe driver.
    One more thing about car ownership:
    imagine instead of putting your child's car in your name,
    or their name,
    instead you create a personal property trust.
    The trust is the titled owner of the car,
    you are the grantor of the vehicle to the trust,
    and you are the trustee of the trust,
    which means you have control of the vehicle,
    even though the car is not in your name,
    and you have your child as the beneficiary of the trust.
    This provides control of the vehicle,
    but no liability of ownership.
    Question #7
    What are a few things I can do to
    help my child become a good and responsible driver?
    When your child is just out of middle school,
    and they are ready to learn to drive,
    there are many things you can do as a parent to help them become responsible drivers.
    Teaching your child good driving skills is the key for them to be safe,
    responsible, and have the right level of confidence.
    Before getting behind the wheel, take time to map out a route,
    rather than random driving.
    Discuss the key parts of driving,
    such as safe following distance,
    speed, and turning.
    Go over all of the safety aspects of your vehicle,
    such as mirrors, lights, seatbelts
    and making sure everything is properly adjusted.
    Show them how to inspect the car, the tires,
    the windshield wipers, lights and other safety equipment.
    Once you and your child are on the road,
    coach your child with regard to speed,
    when to begin braking,
    how to anticipate a light changing from green to yellow to red.
    Try to not talk so much to allow
    the young driver to concentrate on what they are doing.
    And after driving,
    take a few minutes to discuss what went well,
    what can be improved and how to improve.
    Ask your child how they think they did.
    It is also great if you and your child
    both take the Pledge to End Distracted Driving.
    It is a powerful message for your child
    when the whole family pledges to protect lives
    by never texting or talking on the phone while driving.
    Pledging to be a good passenger
    and speak out If the driver in your car is distracted.
    And promise to encourage friends and family to drive phone free.
    We want all drivers especially young ones to:
    To keep your eyes on the road,
    Your Hands on the wheel, and
    Your Head in the Game.
    I hope you have found this video helpful
    to you and your family while on the roads.
    Please feel free to leave a comment,
    subscribe, and share this video.
    And please be safe on the roads. 368 00:21:03,000 --> 00:21:02,230 Thank you
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