Insuring your teen driver?

iVillage Member
Registered: 03-26-2003
Insuring your teen driver?
4
Tue, 03-14-2006 - 10:41pm

I finally called my insurance agent and YIKES!!!

Avatar for jupiterfit
iVillage Member
Registered: 05-12-2003
Wed, 03-15-2006 - 4:12am
Hi calie, Our 16 yr old DD pays her own insurance. I truly think it makes her more responsible. So many of her friends have gotten into careless little accidents. She hasn't because she knows how much that insurance is... and would go up with an accident. She gets the good student discount. Again, another incentive for her... she just barely made the cutoff for the discount so now she tries a little harder in school. We also make her pay for gas, but every once in awhile her dad or I fill up the tank since I sometimes ask her to run errands for me. We paid for the car. It is just a $3000 '97 Nissan; kinda cute, but nothing special. She'll have to work for something special. She is already saving her money to purchase Dad's car, a '03 Grand Prix, which will get replaced in the summer.
Debbie
iVillage Member
Registered: 01-20-2005
Wed, 03-15-2006 - 10:36am

Hey, I could use those same tips. DH just called and informed me (he wasn't very nice about it) that b/c I have 2 tickets and DD has one accident our insurance is being cancelled. We have 5 cars with 4 drivers. Another company is not going to be cheap.

Has DS had drivers ed? That also gets discount points. If it is with the same company as your homeowners, if not try that, sometimes you get discounts there as well. We got a discount b/c I bought life insurance. The discount was enough to cover the cost of the life insurance premium.

Good Luck!!

iVillage Member
Registered: 10-17-2005
Wed, 03-15-2006 - 1:45pm

Finally, something I can add some information to! I am insurance agent in KS so I can give some specific info on the company I work for.

Don't be surprised to see your premiums double or even triple if your teen is driving a car with full coverage. Good student discount is very important. For us is 3.0 or better and will be 18-25% discount. We don't (and many of the companies in this area) offer Driver's Ed discounts anymore. You should also get discounts for multi-car, length of time with that company, claim free, car + house, and driver to car ratio.

Your best bet for teen drivers is a mid-size car like a Taurus, Sable, Grand Am. Avoid Cavaliers and Honda anythings (in my experience). Quick lesson: each car has a symbol rating based on things like # of that car on the road, # involved in accidents, # stolen, how expensive they are to repair if in an accident or if it's cheaper to total them most of the time, etc. Cavaliers are basically plastic and there are a million of them on the road so there are lots in accidents and they total easily. Honda Civics are hot for chop shops and overseas shipment so they're high on the stolen list...

And whenever possible, carry only liability on your teen's car. For what you'll pay in premiums for full coverage you can buy a new car in a short time!

Our company is a package policy so every household member is rated on the account and each driver affects the other. Some companies don't do it that way--each car is it's own policy and each driver is rated only on their car.

If you have a carrier that has a package policy (like it sounds like you do, Tobylady) and your teen is negatively affecting your account due to driving record, ask your agent if you can restrict them on your policy. We can often get permission to restrict a driver which is basically you signing a legal agreement that the person will not be driving any of your autos. If they do and are in an accident the insurance company would then a) deny the claim; and b) cancel the insurance.

I'll shut up now. I just get to deal with this on a daily basis and I know it gets frustrating. I'd be glad to answer questions if they come up and if I have the insight to help.

Dani

Avatar for mjaye2002
iVillage Member
Registered: 03-26-2003
Wed, 03-15-2006 - 5:07pm
Your insurance is only going up another $250 for 6 mos???? My ds took my insurance up about $700 for 6 mos. Yes, he had crappy grades, but no accidents. And he was driving a POS pick up. When he graduated hs, I bought him a much nicer p/u and of course we have to have full coverage. (We had to buy a pick up because he hauls so much stuff for his dad.) His insurance is now up to $1400 for 6 mos. He can't possibly pay his insurance, but he does make his car payments and 1/2 his medical insurance payments. I just dread when his little brother gets his license in another year.