Insuring teenage drivers

stealth1969 · June 2001

the teenager has to show proof of ins to get a license when they are 16. You have to get a form from your ins company or no license. I have 3 cars so he was put as a primary on one of them. Still, it was about $90/mo. I have a freind who had 2 kids get thier license at the same time, his cost $200/mo for them.

nist7seven · August 2002

I'm a 16 year-old who just got his Driver's License about a month ago. (I know, it's every parents/adults worst nightmare.) And of course my parents does not let me drive their car alone.

I am now looking into buying a car, but I heard that insurance rates and the premium for a teen driver like me is very expensive. I want to ask anybody out there who can help how to get the least expensive insurance, and if possible, ways to reduce the insurance cost.

KCRam · August 2002

Hi nist7seven

First off, you probably cannot get your own poolicy. Since you're only 16, you cannot legally enter into a contract. Your best bet to keeping your parents' policy low is to get a used "basic sedan" for a few years and avoid getting tickets and into accidents. Make sure that the policy is written that you are the primary driver of your car and not theirs. Then pay your parents the difference over what they would pay by themselves. Even being a new driver, being on their policy will give you the benefits of things like multi-car discounts that you can't get on your own.

Also, ask your insurance agent about driver improvement schools/classes. Taking and passing these courses carry automatic rate reductions in many states.

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kinley · August 2002

1. Don't tell your parents insurance agent or company you are driving. As presently written, the family auto policy covers every member of the household. UNLESS you have been specifically excluded by a special endorsement signed by the Named Insured, usually your parents, you are automatically insured.

2. If and when the agent or company inquires about additional drivers, then you tell them.

3. When you have a car designatedly and rated for you as the principle driver, your cost is going to be the highest. Therefore, if you are rated as "sharing" a car with a parent, the cost is significantly less.

4. As mentioned in another post, you are a minor and a minor can not own personal property titled to them. (Read about the Law of Infancy.) Thus, it follows as you can not have "insurable interest" in a vehicle, you can not insure it.

5. Having a Cumulative GPA of 3.0 or better will get you the good student discount in addition to the multiple car discount already rated in.

6. Having a Cumulative GPA of 2.999 or less means you don't get the privilege of driving anything because you haven't earned the privilege.

pluto5 · August 2002

Not telling your ins. co. that you have teen driver is bad advice, IMO. If you have a claim, don't be surprised if they don't renew. Besides, it's dishonest.

If you tell the ins. co. teen is an occasional drive of oldest car on your policy that should give you the lowest rate, but don't be surprised if your premium doubles. As long as the teen drives with an adult and has a learner's permit, you may not have to add him to the policy at all.

Also a good time to review your deductibles and increase them if possible, or possibly drop collision coverage on old vehicles.

kinley · August 2002

dishonest, however when the youthful operator has to share a car with a parent, the premium is too high for the exposure. The cost of the sharing youth's insurance is more than he will be driving.

Whether he is declared or not and has an at fault crash, the chance of renewal is the same.

What is dishonest is not answering the renewal questionnaire truthfully.

The student, knowing he is getting a break on the rate drives in a more careful and diligent manner so as to protect his ghost driving from becoming real as a result of any form of crash, his fault or not.

The rates for the infrequent driver are too high.
That rate structure is what is dishonest.

pluto5 · August 2002

They are about six times more likely to have an accident. If you think your insurance company is overcharging, shop around. Rates vary widely.

btate2002 · August 2002

Whenever you sign up with a new car, make sure your parents put you as the primary driver on the vehicle with the LOWEST insurance. We knew both of our past agents well and they did it for us. High Deductables help too.

Pluto - I disagree,
Teen drivers may be more prone to accidents; however, you should not penalize them for something they have not done yet. When the accident occurs, then I understand a rate hike; but not in anticipation of a wreck!

kinley · August 2002

Start too quick.
Stop too quick.
Follow too close.
Turn too fast.

The "I am invincible" syndrome plagues the teeny D.

pluto5 · August 2002

Then the population at large would not have to pay higher rates. When the co. goes bankrupt the govmint could bail it out and pay for it with long term debt that comes due when the teens retire.

kinley · August 2002

There are already companies who focus on sub standard risks and a few of them actually make money. However, their rates are going up as the investment income from stocks are going down. In times like the present, one has to ask if they can afford the PRIVILEGE of driving.

pluto5 · August 2002

The govmint gets its money from taxes and prints the rest, aka Treasury bonds.

kinley · August 2002

pluto5 · August 2002

We want to keep inflation rate under 10% per year.

bored · August 2002

Or Level One License here in MI. Legally, you do not have to insure the young learning driver. Plus, I don't know where you guys live, but insurance for me, when I am 16, will be increased $200-$500 so says our family's insurance agent. To me, (I have to get a job) that's not much. If so, please tell me.

Not telling the insurance company that your teen has a driver's license is neither good nor bad. Wanna know why? THEY WILL FIND OUT ANYWAY. My sister tried this, to avoid paying. The insurance company sent a BILL to my mother, wanting payment. (I forgot how much though) Too bad. She had to do what? GET A JOB, just like my mother told me. There is always the other option though, and that's giving up your driver's license, and I refuse to take THAT route.

Is my mother mean? No, I don't think so. I think it's right to make the child pay insurance, since I am going to have to do that later in life anyway, so why not start now? I believe that 16 year olds that get brand new cars and do not have to pay for insurance (Or payments), are just spoiled brats. But, hey I am spoiled, and wouldn't mind my parents buying me a new car, and paying for insurance, but this is REALITY, not TELEVISION. I think I know the difference.

pluto5 · August 2002

Depends where you live. In the suburbs a car is a necessity. In the city it's a luxury.

janz · August 2002

As a teen I lived in the suburbs/semi-rural area and didn't have my own car. My High School was approx. 10 miles away. I took the bus. Not that I LIKED this mind you. But when I look back I really didn't NEED a car and I did have use of one when I did. This kept my insurance down.

My brother has lived in a large city for years and not having a car been a real pain as the bus schedule simply does not fit his work schedule. In a city it can take HOURS to get to and from work without your own transportation.

sandman46 · August 2002

sent us an increase in our bill about a year and a half after our oldest got her license. We got it lowered about $150 because she has a 4.0 GPA. Be honest because they seem to find out anyways.

The Sandman :-)

nist7seven · September 2002

pluto5 · September 2002

You can also lower your premium by hundreds of dollars if you increase your collision deductible to $1,000 or more.

CarMan@Edmunds · April 2003

I have a feeling that those of you who frequent the Finance, Warranty, and Insurance Message Board may find the following article interesting and helpful: Insuring Your Teenage Driver - (Without Breaking the Bank). Enjoy and please feel free to use the following discussion to talk specifically about this article or about insuring teenage drivers in general. Thanks.

Car_man
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pluto5 · April 2003

One you forgot, take them off your policy when they go away to school.

kinley · April 2003

when a new youthful operator surfaced in one of my accounts, I would have both parents and the new driver in for a consultation. First thing I would do is thank them for taking the time to come in and see me. Next, I'd look at the youth and say,"Only because of inexperience, you are the worst driver on the road. To get the needed experience I want you behind the wheel when you are in the car and only one parent be the coach. When you go up the mountain , you drive the car & pay attention to what your coach says. Not everybody knows how to drive in mountain snow. It's not taught in Driver's Ed. Right now you do four things that need to be corrected. (1) You start too quick; (2) stop too quick: (3) follow too close; and (4) turn too fast.

Besides being on the Honor Roll to continue the privilege of driving it will be more economical if you share one of the two cars with your parents. Adding another vehicle to your policy will cause undue expense to your folk's budget. Without purchasing another vehicle and by sharing one of your folk's cars,there isn't going to be an additional premium for you to drive until the company specifically asks if you are driving or until you are "involved" in an crash. The family auto policy already covers you for driving as you are a member of the family. The additional premium charged by the industry for infrequent youthful driver is more than deserved for the amount of driving you will do by yourself in having to borrow one of your folk's cars."

pluto5 · April 2003

If the teen is licensed and lives at home he needs to be on your policy. If you want to keeep him off your policy keep him on the learner's permit.

kinley · April 2003

in the household is on the policy. If a 12 year old child resident of the household takes the car, there is coverage because under the Family Auto Policy, nobody is excluded as long as they are members of the residence. The teen is automatically on the policy even if he doesn't have a license, he's on the policy. In fact, there are cases where a driver was specifically excluded by signed endorsement & the court held that public policy deemed that the minimum financial responsibility limits would apply. The court reasoned that one person (policyholder) could not deny recovery from an insurance company by signing a driver exclusion endorsement. In those cases, higher limits of liability were immune from the judgement. A new driver does not have to be declared to be covered.

sonjaab · April 2003

The insurance companies are getting sneaky !
They ask a simple question on any new policy or
renewal "Do you have any children in the
household"? If you answer YES, your in for a big
suprise when they turn 16..............
The insurance company charges you extra just
because you now have a 16 yo. Drivers license
or not in you household ! You can't lie either,
Mr. Insurance co. uses a CLUE report. What the
letters stand for I don't know. Its like a car-
fax or a FICO score report. Ask your agent.....

kinley · April 2003

History of Claim Payments of an individual available to all companies who subscribe to this informational service. The Exchange is headquarted in Atlanta.

sonjaab · April 2003

I knew you would know ! My ex works for a major
multi line agency. She has been there for years
and worked her way up and is a Licensed NYS Broker
now............

Our way around our 16 yo. being on our insurance
and getting the surcharge was to have the kid
change his address to Grandmas house ! She don't
drive so no surcharge !
Put the kid under his OWN policy with high liab.
limits. We pay tho...................geo

pluto5 · April 2003

If you lie to your property insurer and you are found out due to claim you are liable for past premiums, and you're likely to be canceled and have the matter follow you in the records. Property insurance is different that life insurance: you can lie on your life insurance application and the policy becomes incontestable after a period of time--they can only adjust premium if you lied about your age. Best not to play games with property insurers. If you want to save money with teenage driver, put him/her on oldest vehicle without collision coverage. He/she is still covered when driving your other cars. Or keep them on the learner's permit and your rates should not be affected.

kinley · April 2003

It may be a sin of omission, but it is not a lie and the application is not a warrant for coverage. Only on Commercial Auto policies may there be an Audit additional premium for additional exposures endured during the policy period, but not applicable on the Personal Lines Family Auto Policy. When and if the company asks about any youthful drivers, you are not required or compelled by policy conditions to reveal new drivers. When an additional vehicle is purchased and the teener is the principal operator, then he should be declared on the policy, but when the 16 year old shares a car with Mom & Dad, the premiums charged by the industry are excessive in relation to the driving exposure of the youth. In most states, due to the Laws of Infancy, youths don't have their own policy of insurance until they are old enough to have a car titled to them.

sonjaab · April 2003

Like I said in NY....YOU PAY...no matter if the
16 yo. has a DL or not.
It worked for us on our oldest. The next 2 are 10
& 11 so we have a few years.......
Remember if you have a kid on your policy and they
have accidents, it still effects your rates waaay
down the road when the kid is long gone on their
own..........geo

janz · April 2003

or less. DMV essentially said, don't let it expire. So, there's no way you could keep the learners permit for any length of time to keep insruance rates down.

andre1969 · April 2003

my Mom & stepdad made me get a policy in my own name. That was back January 1987, a few months before my 17th birthday. It cost me $1361 that first year, for liability-only on a 1980 Malibu. Considering some of the premiums I hear of kids paying today, suddenly that doesn't seem that bad!

I knew one guy (not a teen though, I think he's about 25) who was paying about $400 a month, for a beat-up VW Fox! It finally got so bad that he cancelled the insurance and turned in the tags (don't know where he stashed the car though) and started driving his roommate/girlfriend's Focus. Well, to put it nicely, that car no longer exists, and I have a feeling that the 2 or 3 others involved may not, either! I hate to see what his premiums are going to be when he *does* finally get insurance again!

sonjaab · April 2003

My 25 yo cousin in So. Jersey pays $360 a month
for insurance ! Many accidents ! The kid is a
LOUSY driver......
His car payment is $240..........WOW !
Funny, he walks 2 blocks from his house to take
the Speedline to his job in Philly !!!!

andre1969 · April 2003

I just can't see how some of these people make it, with their high insurance rates. A few years back, when I delivered pizzas, one of the other drivers bought a new, base-model Saturn S series sedan. Between the car payment and the insurance payment, he was paying $550 a month! I'd guess he was about 18-19 at the time...old enough to smoke but not to drink (like that ever stops 'em, though!).

At the time, this kid lived in a townhouse right behind the plaza where the store is. I'm guessing he still lives there, too.

I think his payment was about $300 a month for the car, and $250 for insurance. I'm not sure how bad his driving record was, but I know he had at least one accident. He hit a parked '90's LeSabre with his '87 Escort. Totaled the Escort, and did about $3K of damage to the LeSabre.

I used to get all those kids mad though, when I'd tell 'em that my '00 Intrepid only cost $570 a year to insure!

michaellno · April 2003

Right now, my 16 year old step son is driving our 2002 Ford Explorer back and forth to work. For this privilege, he pays $250 a month, which includes all the multi car and long term customer discounts.

He decided, on his own, to buy a 1986 Chevy panel van. He called around for insurance, and got a quote of $293/mo! This is for his own policy, nothing to do with the one my wife and I have.

Given that he only brings home $600/mo, it'll be a while before he gets the Chevy roadworthy.

kinley · May 2003

If not, then it will be titled to you and as the legal owner, it will be insured under your policy.

michaellno · May 2003

I don't have any idea. He bought the van against our explicit wishes, so he's on his own. If he cannot get it titled in his name, he's out of luck. We will not title it in our name, and our insurance carrier will not cover him once his suspended license goes onto the state DMV record.

So, we'll just have to wait and see. He may have spent $1000 for a truck that doesn't run well, can't be titled (or registered) and just sits (fortunately, it sits at someone else's house, not ours).

andre1969 · May 2003

depending on the state. I think in some states a teen under 18 can buy a car, but can't register it without his parent's permission.

I got my first car when I was 16...an '80 Malibu coupe that my Mom gave to me. It was titled in my name alone, and the insurance was in my name alone. That's been long enough ago though, that I don't remember if she had to fill out any paperwork (other than the gift form) or not. This was in Maryland, back in 1987, so things may have changed since then, and vary from state to state.

Maryland has something called MAIF (Md Auto Insurance Fund), that covers all the bad/inexperienced/young drivers. I don't know exactly how it works, though. I think you pay the insurance agent, and they turn around and pay MAIF, and if you get into any trouble, it's the people at MAIF you have to deal with, not the Nationwide/Allstate/etc agent you paid the money to.

michaellno · May 2003

you may be right. Don't know what the laws are like here in Colorado (I came of age in California, but I didn't have a car in my name until I was out of college).

Gues we'll find out. Right now, the son says he's got a line on a new engine (I guess one of his buddy's dad works for GM or something and can get an engine cheap). He's got about a year to get it roadworthy -- that's when the lease on the car he is currently driving is up. As long as he's paying us his share of the insurance, no problem.

kinley · May 2003

"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???

michaellno · May 2003

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!)

CarMan@Edmunds · May 2003

sammigyrrl · May 2005

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!
Sammigyrrl

dadwithteen · June 2005

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.

michaellno · June 2005

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....

mikefm58 · July 2005

" 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.

hawkjake · October 2005

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???

bobst · October 2005

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.

hawkjake · October 2005

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???

Insuring teenage drivers

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