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Insuring teenage drivers



  • kinleykinley Posts: 854
    "Right now, my 16 year old step son is driving our 2002 Ford Explorer back and forth to work.Our insurance carrier will not cover him once his suspended license goes onto the state DMV record."

    From what you wrote, above , this step son is driving your Explorer and you expect his suspended license will go to the DMV?

    This being the case?? Why do you entrust him with your Explorer???
  • michaellnomichaellno Posts: 4,300
    When the sentence was handed down by the court (back in Dec 2002), I contacted our state DMV to find out what the procedure was for him to acquire a "provisional" (red) license. What I was told was that his license was still in effect until we received notice from the DMV about his suspension. Only at that time could we apply for a hearing regarding the provisional license. I specifically asked if his license was good until the notification was received. I was assured that it is. So, he drives our spare car to and from work only so he can continue to have his job.

    Well, it's now the first week of May and we haven't gotten any notification from the state regarding his license. This is not uncommon ... we've talked to other people who have told us that it may be many months before the courts and the state DMV get their collective act together.

    The suspension was due to an accident he had last year, not due to an accumulation of points for other violations.

    Also, we trust him with the Explorer because he knows if he wrecks it, life as he knows it will be over (we have a large field behind our house and I don't think he would be missed too much!) :)
  • sammigyrrlsammigyrrl Posts: 1
    Here's a question. I had my son, who lives with me, insured (with liability only) on a car that he drove to school. That insurance policy let him drive my car with full coverage. Well...his father has bought him an old truck that he is going to insure under his(the fathers) name and add my child to that. My insurance agent says I have to exclude my son from driving my cars if I take him off my insurance. Won't the policy that my son is under with his father cover my car if my son does drive it? I've asked my ex, but he won't answer the question. Anyone out there have the same situation???
    Thanks for any input!
  • I have been reading the posts back in 2003, and I have a question hoping someone will see it here.

    I have a 16 yr old teen who was involved in an accident. He was driving down the lane in a praking lot. Just when he was coming next to a parked vehicle the other car began to back up. He was shocked and reacted by putting on the brakes, stopping right in the path of the other car. The other driver did not see him and continued backing up into our car. He left a dented scratch on 3 side panels of our mini van and also damaged 2 moulding strips.

    The other driver convinced my son that it was all minor and no report or insurance exchange was needed. My son has since learned thru friends that this guys isn't very responsible (surprise, huh?) and may not even have insurance.

    I am wondering if we are better off handling this out of pocket or pursuing the other driver. It was also suggested to us that if reported as a hit-and-run parking lot accident it could be helpful. None of us (including my wife) has any accidents on our records.

    Thanks in advance for any tips.
  • michaellnomichaellno Posts: 4,300
    Let me see if I can offer any advice....

    sammigyrrl, my frist question has to do with the living situation ... do you have sole physical custody and joint legal custody with your ex? If you have two vehicles on your policy and your son has a valid drivers license, then he must be "rated" on one of the vehicles. My guess is that this is done on the older vehicle that you say has "liability" only coverage --- is this true?

    If he spends a considerable amount of time at dad's house, and dad has a truck that he is insuring for the kid, that is a completely separate policy and has nothing to do with your policy. Not sure that you could drop him from your policy and expect your ex's policy to cover him if he is driving one of "your" cars.

    dadwithteen ... oooh, this is tough. Because the incident took place in a parking lot, that is considered private property, thus complicating matters further. Years ago, I had a truck back into me in a parking lot and the police refused to get involved ... fortunately, I had gotten the other driver's information, including insurance, and the matter was resolved amicably.

    Without any information from the other driver, I think you are out of luck and will have to submit a claim through your insurance agency.

    One piece of advice I have for all parents of teenagers .. while we don't have our kids pay for thier own cars, we do make them make the insurance payment and have enough money in savings to cover the deductible, just in case. If they do have an incident, they cannot resume driving the car until that deductible is replentished.

    Just some food for thought....
  • mikefm58mikefm58 Posts: 2,882
    " One piece of advice I have for all parents of teenagers .. while we don't have our kids pay for thier own cars, we do make them make the insurance payment and have enough money in savings to cover the deductible, just in case. If they do have an incident, they cannot resume driving the car until that deductible is replentished. "

    What I did with my 2 teen-age sons was that I would pay the first part of the premium as if there driving record was perfect and they got all available discounts, safe driver, accident free, good student, driving school, etc. (cost of having kids). They would pay deductibles, surcharges, or fines for any accidents, tickets, or if they lost any of the available discounts.
  • Isn't your child covered the same as your neighbor if they use your car?? If you don't inform your insurance company of a new driver they will still pay a claim and then start charging you a higher premium.

    Am I all wet here???
  • bobstbobst Posts: 1,783
    Hawk, your question is far too serious to trust any answers given by dimwits like us.

    Are you absolutely sure they would pay a clain if your son is in an accident where he injures someone and causes $300K in medical bills?

    Do you think they might deny your claim and accuse you of fraud for not telling them your son has been driving your car on a regular basis?

    I don't know the answers to these very important questions.
  • I guess my question isn't specifically about a minor child, but anyone using your vehicle. Say I'm 40 and I moved back in with my parents, I have my own can and insurance, but I use one of my parents vehicles. Am I insured on thier policy?? Or, say you let your neighbor borrow your vehicle twice a week, do I have to inform my insurance carrier of my neighbor???
  • patpat 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 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 Posts: 1,828
    ****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 ):


    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 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.
  • 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.
  • 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 Posts: 327
    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.
  • thnx. so its safe to say that i should expect to pay around $150 a month? more or less depending on the vehicle?
  • waiwai Posts: 327
    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 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 Posts: 1,828
    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 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 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 Posts: 1,828
    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 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 Posts: 13
    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 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 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
    I believe, Progressive inc. does a bait and switch to their loyal customers when they change addresses!
    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!


    A. DLC :mad: :mad: :mad: :mad: :mad:
  • 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.
  • 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.
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