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Insuring teenage drivers

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Comments

  • patpat Member Posts: 10,421
    (Not the host here.)

    I'm with bobst. Not being straight up with your insurance company is asking for major trouble if you need them, and why do you carry insurance except for the fact that you might need them?? (Well, regardless of uninsured motorist stuff, but you get the point.)

    Why not ask your insurance company if they need to know these things, or if you don't want to do that - and I guess you don't - call an insurance company that isn't yours and ask them if you transfer to them, how would they handle these situations.

    Seems a lot safer than depending on what "the Internet" tells you for a decision with such potentially major consequences ...

    Just a thought.
  • r00nr00n Member Posts: 1
    i'm 18, live in Florida and am about to get a 93 firebird formula v8.
    now a fast car like that can have expensive insurance.
    so I was wondering would it be cheaper if I registered the car under my name, or under my mom's name? She has a good driving history(no accidents, few tickets)
    I've gotten different information from people I know so I would be greatful for any help.

    Also on the insurance policy would it be legal if I was placed as the primary driver of her 95 mazda protege and she had the firebird?
  • jlawrence01jlawrence01 Member Posts: 1,757
    ****Also on the insurance policy would it be legal if I was placed as the primary driver of her 95
    mazda protege and she had the firebird? ***

    I believe that the proper term for that practice is insurance fraud.

    Here is what you will look forward to in Florida (from the State of Florida Department of
    Financial Services, Division of Insurance Fraud ):

    FLORIDA OUTPACES NATION IN INSURANCE FRAUD CONVICTIONS

    TALLAHASSEE-Florida once again leads the nation in the number of insurance fraud convictions and
    cases presented for prosecution, according to a study released today by the Coalition Against
    Insurance Fraud, a national alliance of consumer organizations, insurance companies and government
    agencies working to combat insurance fraud.

    Chief Financial Officer Tom Gallagher noted the study showed the Department of Financial Services,
    Division of Insurance Fraud, has outpaced other state fraud bureaus - including posting the
    largest gain in the number of insurance fraud convictions - while working with a staff and budget
    two-thirds smaller than other key states.

    "Our investigators work long hours on complex cases that often involve multiple organizations and
    even multiple states and countries," Gallagher said. "This report is evidence that the dedication
    of these investigators, other law enforcement agencies and state prosecutors is making a real
    difference in the battle against insurance fraud."

    It is estimated that insurance fraud costs the average Florida family as much as $1,400 a year in
    increased premiums and higher costs for goods and services. Gallagher said insurance fraud schemes
    not only are getting costlier and more complex, but also more dangerous.

    This year the Legislature passed the Pete Orr Insurance Anti-Fraud Act, named after a former
    central Florida NASCAR-circuit driver who died of cancer last year while his health care claims were
    denied by his insurer, TRG Marketing Group. TRG was never licensed to transact insurance in Florida
    or any other state. Sen. Bill Posey, R-Rockledge, sponsored the legislation to significantly
    increase penalties for transacting unauthorized insurance in Florida. The two principals of TRG now
    face up to 60 years in prison if convicted on the charges.

    "Florida continues to lead the nation, as it has for several years, in the number of cases (771)
    referred for prosecution in 2002," the Coalition report stated. California presented the second
    highest number with 687.

    "The fraud bureau in the Florida insurance department continues to lead the nation with 458
    convictions in 2002," the report also noted. New York was second with 389 convictions. The average
    number of convictions among the 43 reporting states was 74.

    Florida's division, with an $11.2 million budget, follows California's $34 million and New
    Jersey's $29.9 million. The fourth-largest budget was reported by Pennsylvania at $9.5 million. Florida
    spends 65 cents per capita on insurance fraud investigations, according to the Coalition's
    calculations, but more than that was ordered returned to the department or victims through court-ordered
    restitution of $11.6 million.

    The study also showed Florida's insurance fraud division works with far fewer employees than other
    states. New Jersey reported 302 employees, California 284 and Florida 168.

    A South Florida insurance fraud investigator was recognized Tuesday at the state's Cabinet meeting
    as one of the state's top 14 law enforcement officers. Investigator Violeta Serrano, one of 90
    sworn officers with the Division of Insurance Fraud, posted 97 insurance fraud arrests in the last
    fiscal year.

    The Florida Division of Insurance Fraud, founded in 1976, is the second-oldest state insurance
    fraud bureau in the nation. Initially established to investigate fraudulent automobile tort claims,
    the division today investigates fraud in all lines of insurance, including health, life, auto,
    property and workers' compensation insurance.

    The department operates a toll-free fraud hotline and offers a reward of up to $25,000 for information leading to a conviction.

    The department has captured national attention with a campaign launched two years ago urging
    consumers to "Verify Before You Buy." Using radio and television advertising, billboards, hundreds of
    articles, columns and news reports, Gallagher has worked to educate Floridians on the importance of
    being sure of what they are buying and from whom they are buying it.

    "We will continue to arrest and prosecute those who prey on our citizens," Gallagher said. "We are
    equally committed to giving consumers the tools they need to make good financial decisions."



    ***********************************************

    So if you plan to do it, please forward your name and address to me.
  • jchan2jchan2 Member Posts: 4,956
    I would just register the car (Firebird) to yourself and bite the bullet.

    Because if you do actually get in an accident, at least you won't be convicted of fraud.
  • thrasher1thrasher1 Member Posts: 5
    Hello, all.
    My then 18-yr-old son got a DUI last winter. License suspended 6 mos. by state (Ga.), and until the end of the year by parents. It was his only traffic offense and he's kept his nose clean and done well first semester of college. Now he is 19 and about to get license back.

    Need some advice on how to re-insure, if anyone has similar experience (and for your sake I hope you don't) or knowledge.

    Our family policy is with Lib Mutual. We had three cars on it, including the one he drove. After his arrest I called and tried to have him removed from the policy (probably a mistake, I later figured out. During that conversation I did admit why I was asking.) They would not do that so I removed the car he'd used -- which he'd bought from me but which is still registered in my name -- to save money while it was parked.

    He does not need an SR-22 to get his license back, thankfully. I guess next step after he gets his license is to call LM and ask to put the car back on and hope for the best. I understand they may decline to insure him.

    Anyone got any advice or thoughts? Since he is still on our policy, just not as a principle driver, is LM likely to check his record and decline coverage as a pd? If they do that, what would be my next best options? Try to shop the whole family policy somewhere else or just get him his own from some high-risk outfit?

    Thanks much for any advice. Not seeking sympathy for either him or me, just factual help.

    ps -- my wife and I have been with LM about 10 years, no claims, no other violations, all on-time payments.
  • jmn000jmn000 Member Posts: 2
    I'm 16 years old and am about to purchase my first car. Before I finally do tho, my mom is making me investigate insurance. I will be added to my moms policy, but will pay for however much the policy cost increases. Can someone plz let me know how much their policy went up after adding a teenage driver.

    btw, the car i'm purchasing is a four-door, 4 cyl sedan...and im a guy.
  • waiwai Member Posts: 325
    I add my two sons one 16, one 17 to my existing insurance with two cars and totalled four drivers. Insurance jumped up by $4,700 a year. Now I just drop my sons insurance as they both go to out of state colleges.
  • jmn000jmn000 Member Posts: 2
    thnx. so its safe to say that i should expect to pay around $150 a month? more or less depending on the vehicle?
  • waiwai Member Posts: 325
    Yours might be different depends on your family's existing policy is it a high risk one, also how many drivers and cars involved and the state and the coverage.
    Mine is with two tickets and 100/300/50 liablity only and no comprehensive and collision coverage.
    Its better to get a quote and shop around.
  • jeffyscottjeffyscott Member Posts: 3,855
    We are in Wis. (Waukesha County). My son got his license about 1 year ago. Cost for liability coverage only was/is about $650 per year. If he had a car that had collision coverage, total cost would be about double that. This is with American Family and we have their multiple verhicle and home/auto discounts. He also has a clean driving record.

    Whatever you do don't get any tickets or have any accidents as the rates go up rapidly for young drivers.
  • jlawrence01jlawrence01 Member Posts: 1,757
    Is that for HIS coverage only? Does he have his own vehicle? What type of vehicle does he have? Can he drive any family vehicle?

    We bought my niece a 1997 Escort. We carry no collision/comprehensive and she is NOT an authorized driver on the other family vehicles.
  • jeffyscottjeffyscott Member Posts: 3,855
    Yes, that is for his coverage only...or the coverage on the vehicle assigned to him. The vehicle is in my name...but, we have one vehicle for each driver and he is the primary driver for a 1996 Contour. We pay a total of $175 per month for 5 cars, one of which has collision and one of which is currently an extra.

    He could drive any other car and be covered...not that we are going to let him drive my wife's new car, but he would be covered if he did so. (all the rest of ours are older cars with only liability coverage...so the rate would not be much different anyway). I am not aware of our insurance having any provision for making someone not authorized to drive a vehicle.
  • jlawrence01jlawrence01 Member Posts: 1,757
    That sounds pretty reasonable for the amount of iron that you are insuring.

    I am not aware of our insurance having any provision for making someone not authorized to drive a vehicle.

    That was a provision that was proposed by the State Farm agent that my brother has worked with for the past 32 years. He wanted to reduce the cost of insurance when they added a teenage driver. They were very concerned as they own a 05 Equinox and a '03 Mustang.

    (Personally, I am in the shoe leather express until they turn 21 camp :) )
  • jeffyscottjeffyscott Member Posts: 3,855
    Yep, insurance costs are not bad in Wis.

    Maybe the non-authorized thing varies by state and/or company. That option never came up when our oldest began driving, if it were available I think our agent would have said so.

    Back when my oldest got her license, we had only two vehicles. The agent initially was going to rate her (as a secondary driver) on the newer vehicle which had collision coverage...he indicated that the company normally wanted them to do it that way. I told him she would be driving only the older car. He agreed with me that the company policy did not match with what most people actually do and since we had been with him a long time, he rated her on the older car. However, my recollection is he had indicated that she would still be covered should she happen to drive the newer one. I don't think she ever drove the newer vehicle at all, though.

    I'd go with your shoe leather plan, except that means me or my wife have to continue driving them around. While we pay the base insurance (until age 18), if they have an accident or ticket they pay the surcharges.
  • meyerwebmeyerweb Member Posts: 15
    Hi all:

    I'm hoping someone, either from personal experience or because they're in the insurance business, can provide me with some information.

    I have a 17 year old son who, while driving a friend's car (with the permission of the friend -- who was driving MY car), swerved to avoid a deer and ran off the road, doing fairly significant damage to the car. No personal injury and no property damage other than the car.

    The owner of the car is being very reasonable, and acknowledges that his son, who requested the car swap, is partly at fault. If we don't want to report it to insurance, he's willing to pay some of the repair cost.

    My question: does anyone have an idea how large an increase in insurance (in percentage terms, say) I can expect due an accident caused by a 17 year old driver.

    Thanks very much,
  • casjcasj Member Posts: 1
    Just received a "Wet Reckless" in CA. When my suspension is up, I'll have to seek an SR-22.
    Any one know what's best way to approach this ?
    The concern,I've heard about is that the ins co. will not only drop me but drop my wife and our home owners policy. We've been with this Co. for> 20 yrs. Or increase rates on everything, not just in coverage for me and my record

    Should I:
    1. Drop myself from existing policy that covers wife, me, 2 car and home owners. Then seek SR-22 insurance from another company for me, only?

    2. Call my ins co and ask how they will treat my offense ? (understanding that these will be a healthy increase for 3 yrs.

    3 Something different ?
  • tidestertidester Member Posts: 10,059
    I don't know the answers to your questions but I'm a little surprised that they would cancel your home insurance.

    Can anyone help casj?

    tidester, host
  • boycott_progreboycott_progre Member Posts: 2
    BE WARY OF PROGRESSIVE INSURANCE!
    I believe, Progressive inc. does a bait and switch to their loyal customers when they change addresses!
    YOU BE THE JUDGE!
    Timeline:
    Jan 10, 2006- I move from the Santa Monica area to Pasadena
    Jan 13th- My old Progressive policy EXPIRES for $620 every 6 months
    Jan 14th- 2:32 pm- I log onto Progressive Direct and change my address
    Jan 14th- 4:30 pm- I log back into Progressive, IT SHOWS MY NEW ADDRESS and that 6 months of coverage will be $620
    Jan 14th- 4:35pm- I pay $620 online and receive confirmation of payment.
    Feb 10th- I recieve a bill for and ADDITIONAL $220 due to my change of address. I call to inform them that my change of address happened 2 hours BEFORE I paid for my new policy. They tell me that a change of address can take up to 3 days and that I must pay the new amount or pay a $50 cancelation penalty.

    Remember, I made this change AFTER my old policy had expired and had NO obligation to renew with them. I could have logged in an a new customer and gotten an instant quote for the correct amount but as, an existing customer it takes up to 3 days to get an accurate rate????
    They are able to give immediate quotes for non-customers but 2 hours to update my rate as loyal customer was insufficient????
    At no time, before I paid, did their website tell me there was a rate change. When I went to pay, their site could have shown me the updated rate, said they were unable to give me a current rate or told me my that the rate shown could change due to my recent address change, but it didn't. I feel that this deception must be intentional because changing your address at the end of your policy must be a common occurence!

    I challenge any representative of Progressive inc. to adequately dispute these claims!

    STAY AWAY----STAY AWAY----STAY-AWAY!!!

    Sincerely,
    A. DLC :mad: :mad: :mad: :mad: :mad:
  • phinneas519phinneas519 Member Posts: 113
    I pay $76/mo through American Family insurance. The policy is for full coverage, though the premium is high to keep the monthly payment down. I have the good student discount, absolutely no traffic violations whatsoever and am allowed a discount because my mother uses them as well (we are not on the same policy, however). For the record, I'm 23 years old and have been driving since I was 17. The vehicle I'm insuring is a black '04 Mitsubishi Lancer Sportback. Could I do better elsewhere? I would try looking, but in times past, my searches have yielded pretty much squat.
  • fltiger83fltiger83 Member Posts: 1
    I have a niece that lives with me in Florida. She has her FL permit, and is getting ready to get her license. My insurance company says I can not add her to my policy because I do not have court ordered custody of her. they are telling me that she has to be covered by her mother in PA, but her mother's insurance will only cover her if she has a license in PA. I have to believe there are ways to do this, with all the divorced and single parent families out there.

    Has anyone experienced anything like this?Any bits of information are greatly appreciated.
  • cccompsoncccompson Member Posts: 2,382
    Suggest that you shop around for another insurance company. Typically, policies cover those in the household (however defined).
  • error438error438 Member Posts: 17
    In Illinois, a new teen driver can only have one non-relative in their car under 20 for the first six months of their licensing period. Does anyone know what the penalty would be for a new teenage driver that got caught with more than one teen in their car? Like is it a moving violation and will it make insurance go up when they were caught?
  • andy600andy600 Member Posts: 1
    As I am an addicted driver I'm am greatly interested in cars and everything that is connected with them.
    In some blog I found an article about car insurance for young drivers.
    I am very interested in this theme as I am just a very young driver.
    I've got a new car a few months ago and now I'm gathering all available information.
    My parents tell that it is necessary for me to get car coverage but I'm not sure about that.
    The article is very interesting I advice all teens to read it.
    However it contains only tips for teens' parents.
    I'd rather read article with tips for young drivers, for teens.
    Careful behavior on the road, low awareness - all this is very important of course.
    But I'd like to read more about insurance policies, ways of costs cutting down, etc.
    But in general the article is rather instructive.
    Perhaps, anybody knows blogs, containing such information. Send references, please. :D
  • jeffyscottjeffyscott Member Posts: 3,855
    My teenager is still my dependant, but is over 18 and has a car titled in his own name. Is my understanding correct that I am free of any liability for his actions as a driver?
  • cccompsoncccompson Member Posts: 2,382
    Is he still on the license that you signed for?
  • jeffyscottjeffyscott Member Posts: 3,855
    No, he had to renew his driver's license sometime after he was 18.

    I do have another soon to be 18 year old, who's initial license is good until he is 19.
  • cccompsoncccompson Member Posts: 2,382
    Then I can't think of any theory under which you could be held liable outside of a business relationship (unless he would be operating your vehicle - understand that he has his own).
  • jeffyscottjeffyscott Member Posts: 3,855
    Thanks for confimation that is what I thought/assumed.

    But in the other case, where the "kid" is still on his first license, which I signed off on, is the implication that there could be some liability to me even after he is 18?
  • cccompsoncccompson Member Posts: 2,382
    "Could" being the operative word here and meaning there's a possibility. Whether it's realistic or not is another question.
  • jeffyscottjeffyscott Member Posts: 3,855
    Since it doesn't cost anything to eliminate that very small risk, may as well eliminate it. I'll just have him renew his license prior to changing liability coverage. The renewed license will be good until he is 22, whether he renews one day after he is 18 or 1 day before he is 19.
  • cccompsoncccompson Member Posts: 2,382
    I need to do the same when my daughter turns 18 in a couple of months.

    And sign the car over to her.

    And have her get her own insurance policy.
  • jeffyscottjeffyscott Member Posts: 3,855
    I should have done that, but never did get around to it with my daughter. She is now 23 had a car that was titled to me until it was recently sold.

    Girls are much cheaper than boys and I kept thinking the old car I had given her would not last as long as it did. She is temporarily using our old minivan now...less than $400 per year for 100/300 liability, despite a ticket or two. I may look at transferring the title, next time plates are up for renewal, if it seems she is going to keep it indefinitely.
  • ckone0814ckone0814 Member Posts: 71
    My son is 20 and has compiled a fairly bad driving record. I had enough and just signed the car over to him and and also got him his own ins policy with PA state minimums.

    My daughter is 18.5 and has a much better record. She drives a "beater" car but since she's under a family policy obviously she pays for all of our cars. We are in a position where we could do the same with her - sign the car over and get her her own insurance.

    Any recommendations? Is this worthwhile? Should young drivers go with minimums since they have no assets to go after? Is there anything I missing here with regards to kids "owning" the car and having their own policies?

    Thanks.
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    "...My son is 20 and has compiled a fairly bad driving record..."

    When did my kid move in with you? ;)

    "...Any recommendations?..."

    There is a very detailed discussion of this topic on "Questions about Insurance and Accidents" board. There are a couple of lawyers there that seem to have accurate info.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • maxllamamaxllama Member Posts: 1
    hello clever people out there,
    can someone please tell me where i can find a list of which vehicles are least expensive to insure for a teen, also would be nice to see which are safest too?
    i have a 16 year old which is about to be unleashed on the world. (you have been warned!) i am trying to figure whether a large used sedan our a used SUV would be best for him.
    thanks for any advice..
  • michaellnomichaellno Member Posts: 4,120
    A number of years ago, when my oldest was turning 16, I had the exact same conversation with my insurance agent.

    Without hesitating, she said "Saturn sedan". I suspect, since this was 5 1/2 years ago, that she was referring to the polymer-sided ones (the S-series and the ION).

    No 2-doors. No trucks. Nothing sporty. No SUV's. Sedans only.

    Oh, and for what it's worth, we've made each of our kids pay their own insurance, plus have enough in savings to cover the deductible. They will be a safer driver if they have some skin in the game.
  • euphoniumeuphonium Member Posts: 3,425
    Before granting the teenage the privilege, has he an accumulated GPA of 3.5?
    Due to grade inflation, that is not expecting too much.

    The cost of insuring the teenager on YOUR car depends not only on his grades, but his & your credit records, in addition to the other criteria, although there will be a multiple car discount. The Liability cost is not dependent on the car so much as the style of car may prevent the company from accepting him for coverage.

    There are many 4 cylinder 4 speed manual coupes that won't contain the gang out there. Advise him there will not be any coverage for the car so if he breaks it, he puts the air back in his bike tires. Prepare yourself for four years of light sleeping.
  • jipsterjipster Member Posts: 6,244
    What are the steps necessary to place your child on your insurance policy? A co-worker said his son was driving his car under his insurance policy, because he was a household member. I told him his son wasn't covered because he needed to call his insurance company and have his sons name added to his policy as a driver. Which would increase his rates... correct?

    Also, do I need to carry my wifes proof of insurance card when I'm driving her car? I say no, just mine... she says yes.
    2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere, 2007 Kia Optima
  • michaellnomichaellno Member Posts: 4,120
    I suspect that the answers to your questions may depend upon what state you live in and who your insurance carrier is.

    Here in Colorado, I've been with State Farm since I moved here in 1993.

    When my stepson turned 15 and got his permit, I contacted my agent. Was told that he was covered under my policy until he got his license, then we'd need to "add" him to our policy. Yes, our rates did increase a little bit.

    When we added a third car to the household, he had to be noted as the "primary" driver of one of them. Didn't matter if it was the car he drove regularly, so we put him on the vehicle that would cost him the least. He still had rights to drive any of the cars we had.

    Regarding the insurance card, State Farm issues us two - one that stays in the vehicle and the other stays with the primary driver. So, when I drive my wife's car, I have the insurance card for "my" car in my wallet, and the insurance card for "her" car in the glove box. Should something happen, we would use the card in the glove box as that shows the policy number for that vehicle.

    Hope that answers your questions.
  • jipsterjipster Member Posts: 6,244
    Thanks. I'm meeting up with my friend later on this afternoon. Will ask him if his son has his permit (not lisence), which would explain friend not having his son "added" onto his policy.

    We also have State Farm (Ky) insurance. I use to keep the extra insurance card in the glove box. Lately though I think I had both cards in my wallet. So, my wife was right then. Either her insurance card in my wallet or in her glove box.
    2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere, 2007 Kia Optima
  • euphoniumeuphonium Member Posts: 3,425
    The Family Auto Policy covers all members residing in the household. The youthful driver does not have to be reported to the company to have coverage.

    When the youthfu driver is SPECIFICALLY EXCLUDED The named insured(s) have to sign a "Driver Exclusion Endorsement".

    Quite a few states have ruled that the DEE does not apply due to the state's Financial Responsibility Law (not in the public's interest) minimum of 25/50/10.

    In excess of the state's minimum limits, the DEE does apply.

    You don't have to report your youth to the company to have him covered. Even if he drives a friend's car that isn't on any insurance and has a crash, the youth is still covered under your primary policy as secondary coverage and he doesn't even have to have a license!
This discussion has been closed.