Teens and car insurance....

[natenaaron]

whoa!!!!!!

My 17 year old is finally getting his license. I called the insurance and our insurance will go up 80%. That’s insane.

Now we have to figure out what to do: buy a *** and only have liability on it, pay the extra 80%, or.....I don’t know what.

Thoughts? This is all new to me.

 

[Mojo88]

First of all review the policy with your agent to determine what the coverages are. Make sure you know exactly what can happen in the event of tickets and accidents with regard to your policy. Be careful bundling policies as car insurance cancellations may be tied into your homeowners policy. I speak from experience as my son received too many tickets and we had our car insurance cancelled. The insurance companies also dropped our homeowners coverage and failed to notify us. We sat for six months without homeowners coverage. Sometimes insurance companies will give a good student discount. Stress over and over that driving is a privilege and not a right. Other than that good luck, we were there twice.

 

[imatabor]

My 17 year old is finally getting his license

When I got my license my parents made me pay the difference. This made me appreciate the privilege to drive but also made me aware of the consequences (to me) if I didn't respect the law.

 

[simon1]

Teen insurance is terrible. Glad I'm a Grandpa now. But for teens the insurance companies do have a point, especially on male drivers.

I'd buy an older model car that is mechanically sound. If the kid doesn't like it tell him he can buy his own car and pay for the related expenses. Your call though.

I had a hand-me-down Chevy Impala of Mom's, but it did have a 327 V-8 in it. That sedan could be fun...it would burn rubber. I have a custom 350 in my Third Gen. Camaro now. I'll leave out the details on the block, heads, intake manifold, high CMF carb., crankshaft, headers, transmission, stall converter, etc. for now.

Or you could buy him a motorcycle for transportation. I've had one or another bike since I was fourteen. I can't remember how many tickets I got on the fast little two stroke street bike I got when I was sixteen. I still have it.

If I had a teen now I'd also be in a quandary. If you get an older model car you may think about liability only instead of full coverage. Your call.

 

[les24preludes]

Make sure you know exactly what can happen in the event of tickets and accidents with regard to your policy. Be careful bundling policies as car insurance cancellations may be tied into your homeowners policy.

What do you mean by "tickets" - speeding tickets? Parking tickets would be insane. Tied to homeowner policy? Very weird. I guess you're in USA. Other countries are different. In Czech Republic you insure the car, not the driver as far as I know.

 

[Rhody]

Our state and many others have speeding ticket laws such that if someone gets 4 moving violations in 18 months they can forfeit their license. The hearing involves proof that the driver isnt a danger to the road.
4 in 18 might sound crazy but a friend s son is now at 3 and having to pay that third in court this month.

As for insurance, i guess buy a car and keep the policy separation from other vehicles and home. Research limiting risk of excess lawsuits against parents with a minimum policy. Shop around. And good luck!

 

[Macfrommichigan]

Probably less expensive to have a beater in kid's name and carry minimum insurance. Uber and Lyft? Scooter?

Kids today would prefer a new phone to a car, I am told.

Does your son want to work a part-time job and pay insurance & gas? If not, maybe he should continue to walk and bike and take the bus.

 

[Mojo88]

What do you mean by "tickets" - speeding tickets? Parking tickets would be insane. Tied to homeowner policy? Very weird. I guess you're in USA. Other countries are different. In Czech Republic you insure the car, not the driver as far as I know.

As another poster replied everything is on the point system. Two points for a speeding ticket or accident, six points for a major like fleeing the scene of an accident or street racing. OVI and you might as well forget it, that's a six point offense. Eleven points and it's an 6 months suspension that may be reduced if you go back to drivers training and retake the driving test. The problem also is that it's a cumulative total in my state. Those points only start to drop off after three years and four tickets in a three year time period isn't that difficult if you drive significant miles. Different states have different laws as it pertains to suspensions. Where I live it's a mandatory three days in jail for an OVI and six months license suspension. The typical cost associated for being a knuckle head and getting a DUI is about 12k for court costs, lawyers fees and associated costs. Oh and one more benefit of multiple tickets, high risk insurance. The rate can be up to 150% more than a usual policy and two speeding tickets can be very costly depending on the speed. Many insurance companies offer discounts on home and car insurance if you have everything with them, it's their way of getting all your business.

 

[PhillyB]

Ok, I'm actually an insurance agent, so here's my answer.

Your insurance will go up in this situation pretty much regardless of what you do. There are a few options and actions that you can take.

1) DO NOT suggest your son get his own car and insurance. It will be more expensive, have less coverage, and he may not even qualify in most standard companies.
2) if there are more drivers than vehicles, have him on there as a restricted driver
3) take defensive driving courses! I'd ask your agent about the rules and discounts available in your state
4) buy him the cheapest car you can find and only put liability on it. His first car will end up being a bumper car regardless, so don't risk raising your rates further with a major claim
5) talk to your agent. There may be additional savings in your state or company that I'm not aware of

 

[Macfrommichigan]

PhillyB, #1, #4 seem contradictory. Could you add detail, please? Get him his own beater, but title it in parents name?

(In Michigan, for the moment, at least, rates are somewhat tied to zip codes and credit ratings. Crappy roads, highest rates is our motto.)

 

[pdieten]

PhillyB, #1, #4 seem contradictory. Could you add detail, please? Get him his own beater, but title it in parents name?

(In Michigan, for the moment, at least, rates are somewhat tied to zip codes and credit ratings. Crappy roads, highest rates is our motto.)

A beater car in your name for him to drive.

When my older daughter turned 16 two years ago I had been driving a paid-for 2009 Ford with a bunch of miles on it. I bought myself a newer car and my daughter has been driving the Taurus, but I'm still the owner of the car and it only has liability and comprehensive coverage on it now. When my younger one turns 16 next year, she'll either share that car with her sister or get it herself if my older one buys her own ride. The rate increase was pretty tolerable this way.

 

[musicman1951]

It's been over 20 years since I've been in this situation and memory is not my long suit. But I remember parents who had their son get his own policy so if - God forbid - he were to do some damage they would not lose their house.

This does cost more and you'd certainly want to check into the legality of the whole thing, but it might be something to think about.

 

[KeenDogg]

When I got my license my parents made me pay the difference. This made me appreciate the privilege to drive but also made me aware of the consequences (to me) if I didn't respect the law.

This!

Sent from my SAMSUNG-SM-G930A using Tapatalk

 

[Joshua223]

I'm working in a State Farm office so all of this may not be applicable to you.

Good student discount.
Use drive safe and save (or similar program) that will monitor driving habits. It has to be synced their phone to work properly. You can actually check how they score on trips and see if they are driving like a street racer.
Have them take a defensive driving course. This will qualify them for another discount.
You may be able to exclude them from the policies on your cars if they are driving one vehicle exclusively.

Please make sure they know that fatal crashes aren't what happen to "other people". And even if they drive safely they have to be cautious of other drivers!

 

[dfoulk]

I've got three kids, two of which are now driving and one that's about to start. The oldest is finally off our policy after getting married and getting out on her own. I expected the policy cost to go down substantially when she left the policy but that didn't happen either. As my vehicles get older the cost doesn't seem to go down even though the cost to replace them is substantially less.

Things I've seen in insuring my children.

The good student discount it definitely helpful if your child can keep their grades up. Stress the importance of this with your children if this is something that is within their reach.

Fortunately my kids have been very good drivers and so far haven't gotten any tickets. Tickets will kill you when it comes to your insurance. With my kids I made them pass my personal driver's test before I'd allow them to take the state test. We started in parking lots, to side streets, to local streets, to state routes, to highways. There were some tears throughout this process but it's not supposed to be easy. If I wasn't satisfied with their driving then I'm certainly not going to let them pass the state test which in my opinion they could have easily passed with very little experience. Today it gives me peace of mind knowing that they are very good drivers when they leave the house. Because honestly that part scares the hell out of me. At least I know that I've done all that I could do.

Some insurances pair the highest risk drive with the highest risk vehicle. So if your son or daughter is driving a Honda Civic and you decide that at this point in your life that you'd like to reward yourself a 2019 Corvette. As far as the insurance company is concerned you're driving a Honda Civic and your son/daughter is driving a Corvette. This can make a large difference in your rates.

Where you live and the type of car you buy is a factor. Call your insurance company when you're determining what kind of car to buy to see what it will cost you as some vehicles are definitely more expensive to insure than others.

It pays to check and compare your coverage and costs every year. Your insurance company will drop you in a second if they determine that you're more risk than you're profitable. So understand that in most cases there is no loyalty there. You are a risk and a source of income to them. If you're not profitable then they will drop you or increase the hell out of your rates.

 

[Joshua223]

This won't save you money on your premium, but I feel it is worth mentioning.
Make sure you are really comfortable with the amount of coverage you have. If you have 25k coverage and you total a new Tesla, you have to pay the difference.
I live near Atlanta and there are a LOT of expensive cars on the road.

 

[TexLaw]

I feel for you. We have one driving and one about to start. Serious sticker shock.

Most certainly look at all the available discounts. Good student, defensive driving class, and drug/alcohol awareness class discounts likely are available on your policy. Look around online, and you probably will find online classes that are both approved for your state and that cost far, far less than the discount you will receive. Those will help cushion the blow a little. (In fact, you ought to look into doing them for yourself if you haven't already. Mrs. TL and I do.)

In time, a good driving record will continue to soft the blow.

If you can go the way of the aforementioned "restricted driver" or "occasional driver," that can be a boon. That probably isn't available if you are getting an additional car for your teen, though. If you are getting that additional car, see if you cannot designate your teen to that car only (as it's probably going to be the least expensive).

On that additional car, it goes without saying that you want something used and not terrible expensive. That helps in all sorts of ways, but but it also goes without saying that you want to get something you actually feel comfortable with your child driving. Once you get to a certain price point, you might start trading a lot of safety for only a few bucks in insurance premium. The kid still will cost a lot, no matter the car. Our current teen driver still is the most expensive in the house, even though my car is worth something like 5-6x his.

 

[Macfrommichigan]

Every teen's first car should be a granny vehicle. Think Buick LeSabre. LOL

 

[RayClem]

Collision insurance covers the cost of repairing your own vehicle. Comprehensive covers the cost for things like the vehicle being stolen, someone smashing the window to grab something from the car, a shattered windshield, etc. Costs for that coverage is not all that expensive. The real issue is liability insurance and medical coverage. If your son in involved in an accident and someone is killed, disabled or badly injured, the liability costs could be $1 Million or even more, especially if there are multiple injuries. If you happen to live in an area where juries like giving liberal damage awards, it can be even worse. If your son is on your policy, you are responsible, so you could end up losing everything you own if you are not adequately insured.

Teenage boys have a bad habit of driving recklessly, especially speeding. I live on a busy corner and frequently see teenage boys racing up and down our residential street that has a 25 mph posted speed limit. It does happen with teenage girls and also with adults, but statistics show teenage males to be the worst offenders. Thus, insurance costs are exorbitant for them. Good students and those who take an approved driver training class often get discounts. If your son is not a good student, it is probably best not to give him his own car anytime soon unless he has a job and can contribute to the cost.

 

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