Teen Driver in your household? Consider an Umbrella Policy

February 26, 2025

Driver inexperience, substance abuse, and distracted driving all contribute to teen drivers being at a greatly increased risk of being involved in a motor vehicle accident.

Some eye-opening data from the Centers for Disease Control (CDC):

• Motor vehicle crashes are the second leading cause of death among teens
• The group with the highest rate of car crashes are drivers aged 16-19
• Teen drivers are three times more likely to be involved in a fatal crash than drivers over the age of 20
   

Our Personal Injury team has seen firsthand the devastation that comes from accidents involving drivers of all ages. Lives can be upended by an unexpected event like a motor vehicle accident, and those troubles can be compounded when a family is underinsured to protect against the unexpected.

Very few drivers can tell you how much liability coverage they carry. It is common when setting up a policy to default to the bare minimum in coverage in an effort to keep your rates down. While the need to be budget conscious is understandable, it can be a costly gamble if you find yourself involved in a lawsuit.

In New York State, the minimum requirements for liability coverage are:

• $25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death, sustained by any one person in any one accident
• $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident (subject to the above per person limits)
   

While the numbers vary based on a variety of factors, the average payout for a car accident death is roughly $1.5 million, so you can see why carrying just $25,000/$50,000 in bodily injury coverage would leave you grossly underinsured in the event of a serious accident. This is where an umbrella policy can be an invaluable, low-cost option to give you peace of mind and protection, especially if you have young drivers on your policy.

An umbrella policy acts as extra protection when your existing liability limits have been reached. For example, if your teen is involved in a serious accident, and the damage exceeds your coverage, it is likely that in the event of a lawsuit, your personal assets could be at risk if you lose a large judgement. 

Even if you are carrying $250,000 in liability coverage, that leaves you exposed for seven figures. An umbrella policy can cost as little as $150-$300 annually for $1 million in coverage. In terms of risk and reward, it makes so much sense for any family, especially those with inexperienced drivers.

Sign your teen driver up for a defensive driving course. Limit their driving at night and in bad weather until they gain experience. Consider using an app to monitor their driving habits. But, in addition to those steps, explore the options available to add an umbrella policy to your existing coverage.

If you have been involved in a motor vehicle accident or any other accident involving injury, our team of Personal Injury attorneys are here to listen and to help. There are questions to be answered, deadlines to meet, and steps to be taken to protect you and your rights. Give myself or any member of our PI team a call today, 716-854-4300.

Harry J. Forrest is an attorney with Gross Shuman PC. The focus of his practice is personal injury claims, including accidents involving motor vehicles, constructions sites, property hazards and defects, as well as long-term disability claims and appeals. He has successfully managed cases in both federal and state courts and has tried cases to verdict involving claims for personal injury, property damage, contract disputes and constitutional civil rights violations. You can contact him at 716-854-4300 ext. 225 or hforrest@gross-shuman.com