How will my premium be affected if I file a claim for my child then drop them?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 24, 2015

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Insurance Question from Chicago, IL

Asked on 08/24/2015

How will my premium be affected if I file a claim for my child then drop them? I have a car and my child has a car. She recently got into an accident. The damage to the car she hit is $2000. How will my premiums be affected if we file a claim with the insurance company for her and her car, then drop her from the insurance as she is selling her car anyways and won't be driving anymore? Will my premium go up if I drop her? Thank you

Answer given on August 31, 2015

If your daughter’s car is insured under your policy and she caused an accident, you must report it to the insurance company so they can settle the damage claim for the other party. It will be considered an at fault accident and her rates will be affected. It is possible she will lose a good driver discount, depending upon whether she has other activity on her record and/or her driving experience.If you then sell her car, she will still be considered a driver in the household and her record will transfer to another car on the policy, presuming she lives in your household. You would have to specifically exclude her from your insurance policy to avoid any repercussions regarding her driving record.If your daughter has a separate insurance policy then the claim needs to be filed under her policy. It will not affect your rates. However, if she then sells her car but lives in the household, then the above situation will still apply regarding your rates.


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