Should you add your elderly parents’ car to your PEMCO policy?

As aging parents increasingly rely on their adult children for help with errands, rides to the doctor and grocery shopping, they often turn over their car to them, too. Sometimes it's a matter of pride. Sometimes they simply want to save their child the added fuel expense and wear-and-tear on their car. No matter how well-intended, if you're that caregiver and get in an accident while driving your parents' car, you could encounter unexpected coverage questions.

That's because virtually all auto insurance policies sold in the United States, including PEMCO's, exclude coverage for non-owned vehicles "furnished and available for regular use."

If your parents carry approximately the same limits you do, it's not much of a problem because the accident would be covered under their policy. But if their limits are lower and you're found liable in an accident, you could be under-protected, since your own policy may not kick in.

You're not without options to make sure you're fully protected, and you'll want to talk with your parents and PEMCO to arrive at the best solution. A simple fix may be increasing your parents' limits so that anyone (whether that's you, a neighbor or an assistant) would be adequately covered by your parents' insurance company when driving the car with their permission. Or, if your parents have truly given up driving the car themselves, they may want to consider selling or giving it to you. You'd then become its registered owner and add it to your PEMCO policy, the same as any other car you've purchased – yet you could still drive them around in "their" car.

Every family and coverage situation is unique and we'd be happy to discuss yours. Call your local PEMCO agent or 1-800-GO-PEMCO and we can explore options with you.