NLIC.org

Christopher Said:

pay allstate on line for car insurance?

We Answered:

Verb? I assume you mean CAN you pay Allstate online? Most insurance companies don't do that, because you have to pay via credit card. And mastercard/visa CHARGE the person taking the payment 3%. And it's illegal to add the mastercard fees to the buyer's charge, so, unless they want to discount your premium 3% (which they don't) you'll have to pay in person to an allstate agent, or mail your payment in.

Denise Said:

I need to win this bet! $5000.00 on the line! Attn: Car insurance reps!!!?

We Answered:

They can sue your parents.

Does not mean they will win. It may not even survive a Declaratory Judgment action.

But defense costs get incurred.

(you can sue anyone for anything - does not mean you will win).


This is very general info - so your policy language or state law could change what I'm about to tell you. And it's me trying to make a complicated subject simple. (this is not legal advice).

1. Most auto policies define an insured as the named insured and spouse - and any resident relatives living in your household.

Since you are a blood relative living in your parents house - you will qualify as an insured.

However - that does not mean your parents will get sued.

Mostly it means that if you drive your parents car on a regular basis you have to be listed on their policy.

- Depending on your state law -- if you were involved in an accident and injured. The accident was caused by an uninsured motorist - you would file against your own policy (on your car) for uninsured motorist coverage. If your injuries were so bad that your policy limits were not enough - you may be able to qualify for coverage under your parents uninsured motorist coverage. (this is called stacking-- some states do it and others dont).

But-- your parents are talking about LIABILITY.

Liability is a completely different animal from uninsured or under insured motorist coverage.

With Liability coverage - IF
1. the car is in your name only (your parents are not listed on the title or registration)
2. You have your own policy - in your own name

And you are involved in a accident for which you are at fault
A law suit against your parents would not succeed. Your parents policy would not provide coverage for the loss.

Here's why:

In order for someone to sue your parents (and win) - your parents have to be negligent.
If they have no ownership in the car and they were not operating the car - there is no cause of action against them.

Liability coverage does not stack like uninsured motorist does.

That means -- if you are driving your car (that your parents name is not on) -that is insured under your own policy (where you are the named insured) and you cause a wreck and injure someone -- your parents policy would not come into play. Even if your coverage had lapsed. So the person could not successfully sue your parents or collect from their policy.

This is because the auto policy has language in it that says the liability coverage on the Dec page is the most it will pay regardless of the number of cars owned or policies.

The only way liability stacks is this: the driver is someone other than the owner.

This is because insurance follows the car first then the driver.

So - if your mom was driving your car. She causes an accident and injures some one.
1. your policy liability would pay first. If those limits were not enough to handle the damage/injuries caused then..
2. your mothers liability would stack on top of your liability. This is because she is the driver.


The fact you are renting a room from your parents does not matter.

It all comes down to how the car is titled and registered and how it's insured.


Keep in mind - that the info I gave you is very general - simple. The laws of your state, language of your policy and facts of loss could affect things.

You may want to speak to your agent too. Your agent is familiar with your state laws and your language. Your agent would also be able to contact an adjuster with your company who could explain how it works where you are.

Not sure if you understood all this. This question is actually more complex than you realize.

I run into attorneys that get this all mixed up -- especially ones that don't deal with this all the time.

Now--- this does not mean that your parents could not be negligent in their own right. It sounds like this is what happened in the example given by mbrcratz.


Here's another example:

Your parents purchase beer for a family gathering. You down a case and get bombed. You leave their home and hit someone on the way home causing injury. Your parents are negligent for providing the alcohol and allowing a drunk to drive. It's called Dram Shop Liability or Liquor Liability. It's the same concept that holds bars responsible when their drunk patrons leave and cause accidents.

In this case - you are negligent in your operation of the vehicle -- your parents would be negligent under Dram Shop Liability.

These are two separate causes of action. Your parents get sued (not for what you did) but for what they did or did not do.

That's why you take the keys before the party and anyone who is drunk or "buzzed" - spends the night.

Francis Said:

Car insurance advice needed?

We Answered:

Simply call about 3 local Companies for quotes. Some one who has an office with an agent. Trying to get quotes on line is not, in my opinion, a good way to buy insurance. Beware of the Spammers here who are posting their companies websites. They actually get paid for spamming you this way