Father’s day is indeed the perfect time to show love and appreciation to your dad, either by spending the day with him, taking him out to his favorite restaurant, or gifting him what he has been longing for. If you plan to gift him a car, jewelry, or some other precious object, getting it insured at the same time will protect him from future headaches in case it gets damaged or stolen.
Is a Car the Right Gift?
Ask yourself if giving your father a car will meet his needs or desires. Even though a vehicle is a great gift idea, he may be comfortable with his current vehicle and insurance rates. He may not know what to do with an extra vehicle, which could take up precious space. It’s best to find out if he really needs a new car.
Since a car often represents an individual’s identity, it would only be fair to make sure what you buy him is something he would buy for himself. Another decision you should make is whether or not to let him pick out his gift. Sometimes that’s the easiest way to make anyone happy.
Should You Gift a Car Insurance Policy to Your Dad?
One of the complexities about giving someone a gift like a car is that the insurance policy that goes with it will need to be customized for the driver. The insurance company sets its parameters and rates, and each driver can make adjustments to his or her plan depending on how much they drive and other factors.
So it’s possible to buy an auto insurance plan for someone else as a gift, but it’s easier if you let the driver handle their insurance. Key factors that affect car insurance rates include driving record, zip code, the car’s year, make and model.
Jewelry, Art, and Collectibles
If a car seems too complex, consider something else that would be just as special. Popular valuable gifts include jewelry and electronics, which can be sent in the mail, protected by insurance. These days parcels can be tracked accurately every step of the delivery, but it’s still important to have coverage if the item gets damaged during shipping.
Is Home Insurance Enough?
If your dad lives with you, expanding your home insurance or renters insurance coverage to include the valuables you have gifted him will be enough to cover them in the event of theft or vandalism. Standard home insurance and renters policies often limit the coverage for such expensive personal items, with most policies capping the coverage at $1000 to $2000. To ensure adequate protection for such items, you can add a floater or an endorsement to your existing policy. The price of such additional coverage will vary depending on:
- Where you live
- The type of jewelry/valuables
- Options available with your insurance provider
- Location of the valuables
How Much Coverage Is Needed
It is important to get the jewelry/ expensive gift properly appraised, as the price of the endorsements/floaters will be calculated based on the value determined post appraisal. It will also let you know if you have adequate coverage under your existing home/ renters insurance or if you need any additional coverage.
Get Standalone Policies
If your dad doesn’t have home/ renters insurance coverage, you can also buy him a standalone policy that only covers the gift (say electronics, jewelry, etc.). Besides, if your dad plans to use the gift as business equipment (for instance, if he is a professional photographer and you gift him an expensive camera), a standalone policy would be a great way to protect it from future loss.
Make this Father’s Day memorable for your dad by gifting him what he has long desired to have. Just remember to think about the insurance involved as well. Will your gift cause his insurance rates to go up? It’s good to work out these details before you give him the surprise. Contact us at J. Archer Insurance Group to learn more about how to be properly insured. We are here to assist you with all your coverage needs.