Teenager: Any way to NOT put them on car insurance?

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creant
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Teenager: Any way to NOT put them on car insurance?

Post by creant »

Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
THY4373
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Re: Teenager: Any way to NOT put them on car insurance?

Post by THY4373 »

Neither my nor my ex's car insurance went up when our son got his learners and we both added him to our insurance. Maybe it varies by state, I don't know.
slidecreek
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Re: Teenager: Any way to NOT put them on car insurance?

Post by slidecreek »

You will need to check to with your insurance agent to be sure, but I don't remember our premiums going up until an actual license was obtained. Rates were not impacted by a permit.
Raspberry
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Raspberry »

I think it depends on the state and insurance company. This is old information (over 5 yrs ago) but I know Nationwide Insurance in Florida would require anybody in the household with a Learner or proper DL to be covered on the policy.
ByThePond
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Re: Teenager: Any way to NOT put them on car insurance?

Post by ByThePond »

I'm sure it varies by state, but why would you want to risk the liability of an uninsured teen getting behind the wheel with or without permission? Sounds to me like a great way to lose a lot of assets. jmo.
surfstar
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Re: Teenager: Any way to NOT put them on car insurance?

Post by surfstar »

As long as the teen isn't a driver, why would you be adding them?
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cchrissyy
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Re: Teenager: Any way to NOT put them on car insurance?

Post by cchrissyy »

my insurance required adding the kids names to the policy when they got their permits - not before - and there is no cost until they have actual licenses.
fabdog
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Re: Teenager: Any way to NOT put them on car insurance?

Post by fabdog »

We added our son to our policy when he got his learner's permit, but the premium won't go up till he is actually licensed. This is in VA

Obviously if your teen does not get a permit or license then they don't need to be added to insurance

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greg24
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Re: Teenager: Any way to NOT put them on car insurance?

Post by greg24 »

State Farm in IA added ours for no cost on a learners permit. We had to pay when the license was obtained.
helloeveryone
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Re: Teenager: Any way to NOT put them on car insurance?

Post by helloeveryone »

creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
From another thread I recall the following was stated by a poster...
They added their child for the learner's permit - that did not result in increased rates - that allowed their child to get as much experience driving WITH a parent in the passenger seat.

Then once they added the child to the insurance with a driver's license - their insurance went up.

As someone else noted - it's important to add them once they are driving your vehicles (or their vehicle) with a driver's license. "Gaming" the system is a recipe for disaster
KlangFool
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Jack FFR1846
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Jack FFR1846 »

Insurance is not affected with a permit. (I suppose states may require insurance at this point. Massachusetts doesn't)
Insurance will increase on at least ONE CAR in the household when a teenager gets a license.
Other cars in the household can be specifically excluded using a form for each and every car that's being excluded. If the teen drives the car and a claim is filed, all insurance is void except the state minimum. Some states, this is zero. So all liability will fall to you, the car owner and if taken to court, potentially all future earnings of the teen for his lifetime.
At least one car will have to be insured with the teen listed as they are a licensed driver in the household.
The teen can surrender the license to remove the teen from insurance.

Unfortunately, the teen buying a car won't work unless the teen is at least 18 years of age. Under 18, there are no states that allow entry into a contract. Even then, the exclusion forms will have to be filled out to exclude the teen from the other cars.
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robphoto
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Re: Teenager: Any way to NOT put them on car insurance?

Post by robphoto »

We never urged our kids to get their licenses, mainly because of the high insurance cost, and they took driving courses but never got around to scheduling and taking the test. Each ended up taking driver's training after college (one in Japan, one in New York City) and dealt with their own insurance.

I think the information above, that it's the license that triggers the uncharge, is generally correct, but your situation may vary. It is probably worth getting the insurance quoted by other companies, if the rate from your insurer is very high.
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Re: Teenager: Any way to NOT put them on car insurance?

Post by bloom2708 »

You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
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jbmitt
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Re: Teenager: Any way to NOT put them on car insurance?

Post by jbmitt »

It’s possible to exclude them from your policy and purchase a separate policy for them. Just be aware that there is no coverage for an excluded driver if operating one of your cars.

It also doesn’t get you around negligent entrustment if you do it to put them on a low limits policy and have higher coverages of your own or provide and title the car in your name.
Deblog
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Deblog »

Make sure you check around with other insurers when child needs added. We had Erie insurance since we were married and adding my son raised our rates $1000. We switched to State Farm and had him do a safe driver module and cost was only a few hundred more for son. Every state is different and some do not seem to want to insure teens or will make a lot in the process.
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Jack FFR1846 »

People with little driving experience will raise your rates. I say it that way because our older son was ready to camp at the registry to get his license. Our younger one got it only because he would have to drive to community college and he was over 18.

I remember when I had my Lotus with full coverage, it cost me about $700 a year. My younger son now (20) is driving an 09 Fusion with liability only and the annual premium is over $2000.

Of course, over time, rates get better. My older one is at nearly the same rate as me and my wife.

Both my kids took the MA driver training (cost about $1k). Insurance without this would be double.
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Soon2BXProgrammer
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Soon2BXProgrammer »

creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
learners permit = normally no increase.

The other trick is if you have less cars then drivers, then SOME insurance companies don't ding you for the child (as bad).
DoubleComma
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Re: Teenager: Any way to NOT put them on car insurance?

Post by DoubleComma »

This is very state and carrier dependent.

My carrier, Nationwide, at my most current renewal asked for confirmation of age and gender of everyone living in my home. I didn’t feel particularly comfortable with this so I spoke to the broker (happens to be my dad). He confirmed as my kids age so does my policy risk profile. Really nothing changes until a child reaches 16, licensed or not, at which point you can chose to exclude that child or have them listed as a non-driving member, if they receive a license then they become part time driver, if we buy an additional car they are a driver. Each level has some impact to premium.

A similar situation exists when you have a child who you are still responsible for, but they don’t live at home. A college student is the best example. If that student has roommates, and you don’t specifically exclude those roommates, they are seen as a potential operator and adds risk the policy. Most folks don’t recognize this because by the time you have a kid in college the “new driver” rates start to subside, but they don’t decline as quickly as if they were living their own or if you exclude a driver.

Excluding a driver is high risk. Don’t do it unless there is absolutely 100% no chance that person will ever drive your vehicle.
wolf359
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Re: Teenager: Any way to NOT put them on car insurance?

Post by wolf359 »

Question: When is insurance cheap? Answer: When it isn't used. If the potential liability is low, and the potential risk of payout is low, then the premiums are low.

Related question: When is insurance expensive? Answer: If it is used. If a claim is expensive and has a high probability of occurring, the insurance company needs to raise the premiums to be ready to pay out.

If you have an inexperienced teen driver, they are statistically more likely to get into an accident (because they're inexperienced) and the damage can potentially be pretty high (because they're driving a car, which can cause tremendous damage to property or life.)

It's expensive because it's needed. If you try to go without liability coverage, and it is needed, you will be liable for the damages directly. This has high financial consequences.

Your best options are:
- Use every avenue to reduce the rates. Shop for other car insurance companies. Make sure they are signed up for good student discounts. Make sure they get a discount for formal driver's education (and take it.)

- Ensure that they're as experienced and as safe as possible. Use larger cars with less value. Do what you can to prevent them from getting into accidents and risky situations. Accidents will cause rates to go higher.

- Set a condition for driving that they have to help cover their own car insurance. This means that if they want a car, they need to get a job.

- When they are no longer your dependents, they're responsible for their own insurance. Set them free as quickly as possible.
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sergeant
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Re: Teenager: Any way to NOT put them on car insurance?

Post by sergeant »

bloom2708 wrote: Mon Jan 04, 2021 3:52 pm You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
Just make sure the low cost car has excellent safety features. When I was head of our traffic division I saw way too many collisions involving young drivers.
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MrBobcat
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Re: Teenager: Any way to NOT put them on car insurance?

Post by MrBobcat »

bloom2708 wrote: Mon Jan 04, 2021 3:52 pm You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
^This

That's exactly what we did with our kids, cheap car, liability/comp only, kid assigned to a car. We used State Farm.
MarkBarb
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Re: Teenager: Any way to NOT put them on car insurance?

Post by MarkBarb »

Also ask about your umbrella policy. The cost of our umbrella increased more than our auto when we added two teen boys to our insurance. It gets a little better when they hit 18.
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MrBobcat
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Re: Teenager: Any way to NOT put them on car insurance?

Post by MrBobcat »

sergeant wrote: Mon Jan 04, 2021 6:39 pm
bloom2708 wrote: Mon Jan 04, 2021 3:52 pm You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
Just make sure the low cost car has excellent safety features. When I was head of our traffic division I saw way too many collisions involving young drivers.
Outside of seat belts and airbags what would you suggest as cost effective safety features?
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Re: Teenager: Any way to NOT put them on car insurance?

Post by sergeant »

MrBobcat wrote: Mon Jan 04, 2021 6:56 pm
sergeant wrote: Mon Jan 04, 2021 6:39 pm
bloom2708 wrote: Mon Jan 04, 2021 3:52 pm You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
Just make sure the low cost car has excellent safety features. When I was head of our traffic division I saw way too many collisions involving young drivers.
Outside of seat belts and airbags what would you suggest as cost effective safety features?
Since we are talking a lower value car I would want it to have front and side airbags, 3 point seatbelts, and anti-lock brakes. The most important safety feature is avoiding distracted driving for young drivers. Their phones should be programmed for safe driving, which is they should be off when they're behind the wheel. Their friends shouldn't be allowed to drive with them in the first year of driving. They shouldn't be allowed to drive after 10pm. Some of these rules are codified in some states.

If price wasn't a consideration I would want the car to also have ACC, AEB, lane departure warning, and a rearview camera when backing.
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barnaclebob
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Re: Teenager: Any way to NOT put them on car insurance?

Post by barnaclebob »

MrBobcat wrote: Mon Jan 04, 2021 6:56 pm Outside of seat belts and airbags what would you suggest as cost effective safety features?
luckily most recent model cars have very good safety features and might just be missing automatic collision avoidance braking and lane assist type features. The poster above me might have forgotten to mention stability control which has been required on all new cars for several years I believe. Its probably the next best feature after airbags and anti lock brakes. Also don't let tires wear down too far, hydroplaning gets much worse when your tread is reduced but not at the minimums.

OP, you may be able to avoid high insurance if you sign something saying they wont be covered if they drive your car. My sister in laws husband crashed my in laws car they had to sign something saying he wouldn't be able to drive their cars. He or they wouldn't be covered if he did have an accident driving their cars. Of course then your child really wouldn't be allowed to drive your cars at all.
Last edited by barnaclebob on Mon Jan 04, 2021 7:51 pm, edited 1 time in total.
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StevieG72
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Re: Teenager: Any way to NOT put them on car insurance?

Post by StevieG72 »

Laws vary by state, best solution is to delay getting actual license. Learners permit should not impact rate, but verify with Insuramce company & review laws for your state.

I have gotten false information from my insurance company on numerous occasions for a few different issues. Hit and run accident out of state, and insurance options for my teen driver to name a few.
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Jack FFR1846 »

Delaying the license simply delays when the rates skyrocket. I know from my 2 sons. DS#1 got it at 16.5.....youngest possible age in our state. DS#2 was 18....a couple months before his 19th birthday. For both, the car they were "primary" on tripled the first year or 3 of driving.

In Mass, you can drive a motorcycle with a motorcycle learner's permit. So there's a way you could potentially avoid paying the higher "new driver" rate for some number of years. My own first couple vehicles were motorcycles and I never got my MC license until my 50's.
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manatee2005
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Re: Teenager: Any way to NOT put them on car insurance?

Post by manatee2005 »

KlangFool wrote: Mon Jan 04, 2021 3:48 pm
creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Which one did you end up going with?
teniralc
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Re: Teenager: Any way to NOT put them on car insurance?

Post by teniralc »

creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
I suggest talking with the insurance agent and working with them to get down to minute details of the policy (ies). We were able to work out a few small savings. Also if your policies are combined with one company, that often helps. You also might ask around. I was talking with a neighbor and when I contacted the agent he suggested, it saved us a good deal each year, as long as we put all our policies with them (Safeco). You might also ask the agent to explore the idea of having a smaller level of auto coverage and possibly taking out a liability policy. The agent can tell you if that would be effective both in savings and in safeguarding you all if you are to be sued. The reason for having good coverage is what happened to a relative of mine. I have a niece who was driving some friends of the family and siblings (6 people in a mini-van) when the car behind them rear-ended them. There was some whiplash with some of the passengers in my niece's car. Some years later, my niece received a letter from one of the passenger's insurance companies (one of the people she knew in her van) that she was being sued. We're not even sure if the passenger knew that their insurance company was suing my niece. It has been wrapped up now for about 2 years between the insurance companies. This all happened probably 5 years ago. In the end, my vote is to get ample coverage and then a liability policy. The other thing that might help train your young drivers (and track their driving habits) when you're shopping for policies is a device that some insurance companies now have you put on your car to track fast accelerations, hard braking and night driving. You leave it plugged into the car for about 90 days. You can log onto the site to see how your child is driving. If there are too many infractions, you can start setting some limits with them before an accident happens. It is quite handy and helps to keep the parent from nagging. It is simple math. The device tracks that vehicle every time it is driven. Here's a link with some examples: https://famisafe.wondershare.com/tracke ... rents.html. Good luck with the new drivers. I bet they'll be very responsible.
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

manatee2005 wrote: Mon Jan 04, 2021 8:08 pm
KlangFool wrote: Mon Jan 04, 2021 3:48 pm
creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Which one did you end up going with?

I am in Virginia. I use traveler's insurance.


KlangFool
toofache32
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Re: Teenager: Any way to NOT put them on car insurance?

Post by toofache32 »

surfstar wrote: Mon Jan 04, 2021 3:45 pm As long as the teen isn't a driver, why would you be adding them?
:oops:
manatee2005
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Re: Teenager: Any way to NOT put them on car insurance?

Post by manatee2005 »

KlangFool wrote: Mon Jan 04, 2021 8:40 pm
manatee2005 wrote: Mon Jan 04, 2021 8:08 pm
KlangFool wrote: Mon Jan 04, 2021 3:48 pm
creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Which one did you end up going with?

I am in Virginia. I use traveler's insurance.


KlangFool
I found geico to be the best for me.
KlangFool
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

manatee2005 wrote: Mon Jan 04, 2021 9:09 pm
KlangFool wrote: Mon Jan 04, 2021 8:40 pm
manatee2005 wrote: Mon Jan 04, 2021 8:08 pm
KlangFool wrote: Mon Jan 04, 2021 3:48 pm
creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Which one did you end up going with?

I am in Virginia. I use traveler's insurance.


KlangFool
I found geico to be the best for me.
Please state your state.


KlangFool
manatee2005
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Re: Teenager: Any way to NOT put them on car insurance?

Post by manatee2005 »

KlangFool wrote: Mon Jan 04, 2021 9:59 pm
manatee2005 wrote: Mon Jan 04, 2021 9:09 pm
KlangFool wrote: Mon Jan 04, 2021 8:40 pm
manatee2005 wrote: Mon Jan 04, 2021 8:08 pm
KlangFool wrote: Mon Jan 04, 2021 3:48 pm

creant,

There is a better solution out there. Shop for a better car insurance company. When we go through this phase, we found that there is a significant price difference between insurance companies for parents with teenage drivers.

KlangFool
Which one did you end up going with?

I am in Virginia. I use traveler's insurance.


KlangFool
I found geico to be the best for me.
Please state your state.


KlangFool
California
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beyou
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Re: Teenager: Any way to NOT put them on car insurance?

Post by beyou »

Agree with prior responses, but some color to add for your future. When my kids graduated from college, I had to convince my insurer to remove them from the policy. Had to send copied of leases proving they live elsewhere to get them off my policy.
KlangFool
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

manatee2005 wrote: Mon Jan 04, 2021 10:22 pm
KlangFool wrote: Mon Jan 04, 2021 9:59 pm
manatee2005 wrote: Mon Jan 04, 2021 9:09 pm
KlangFool wrote: Mon Jan 04, 2021 8:40 pm
manatee2005 wrote: Mon Jan 04, 2021 8:08 pm

Which one did you end up going with?

I am in Virginia. I use traveler's insurance.


KlangFool
I found geico to be the best for me.
Please state your state.


KlangFool
California

Thanks.


KlangFool
KlangFool
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

OP and Others,

We found that the kids need to have 5 years of driving experience before their insurance rate can go down. So, there is no escaping from paying more expensive car insurance for the first 5 years. But, you could shop around for a better deal.


KlangFool
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White Coat Investor
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Re: Teenager: Any way to NOT put them on car insurance?

Post by White Coat Investor »

creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
Learner's permit didn't increase my insurance bill. So if you don't want to pay more for insurance, don't let them get a license (or drive obviously).
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spammagnet
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Re: Teenager: Any way to NOT put them on car insurance?

Post by spammagnet »

I haven't read every post so perhaps this was already mentioned, but the cost of insuring your teenager with a license can vary, depending on which car they're associated with as their primary vehicle. Ask the agent which one results in the best rate. It might not be the one you would think.

That doesn't mean they can't drive the others but don't make false claims about which they're driving most of the time.
manatee2005
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Re: Teenager: Any way to NOT put them on car insurance?

Post by manatee2005 »

White Coat Investor wrote: Mon Jan 04, 2021 10:48 pm
creant wrote: Mon Jan 04, 2021 3:38 pm Adding a teenager to one's adult car insurance plan significantly increases the premium. Is there any scenario where this is NOT required or at least delayed?

- teen does not get any learner's permit (or delays the learner's permit to the latest possible time)

- teen gets learner's permit but no official drivers license (or delays the transition from learner's permit to license for as long as possible) -- is the premium still raised during the learner's permit pre-license time period?
Learner's permit didn't increase my insurance bill. So if you don't want to pay more for insurance, don't let them get a license (or drive obviously).
They can be on learner's permit for 5 years :D
politely
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Re: Teenager: Any way to NOT put them on car insurance?

Post by politely »

If I recall, when we added our first child, our rates doubled, but I attribute that to adding a second car. That seems fair. I also recall that putting the kid on our insurance was much cheaper than trying to get separate insurance for an 19-year old. While I had reservations about adding a child to our insurance, overall it just made more sense to us. We'd be paying the insurance for the kid anyway, and we have a good amount of umbrella coverage. Also, fwiw, we also gave up trying to title the car in the kid's name because of the problems with the insurance - it was all just much easier to consolidate in our name & policy.
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creant
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Re: Teenager: Any way to NOT put them on car insurance?

Post by creant »

Jack FFR1846 wrote: Mon Jan 04, 2021 8:04 pm Delaying the license simply delays when the rates skyrocket.
KlangFool wrote: Mon Jan 04, 2021 10:31 pm We found that the kids need to have 5 years of driving experience before their insurance rate can go down. So, there is no escaping from paying more expensive car insurance for the first 5 years.
Can someone clarify? Meaning, if the expensive car insurance period is typically age 16-22 and one delays it by 2 years, then the period is now 18-24 (rather than 18-22)?
KlangFool
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Re: Teenager: Any way to NOT put them on car insurance?

Post by KlangFool »

creant wrote: Tue Jan 05, 2021 3:56 pm
Jack FFR1846 wrote: Mon Jan 04, 2021 8:04 pm Delaying the license simply delays when the rates skyrocket.
KlangFool wrote: Mon Jan 04, 2021 10:31 pm We found that the kids need to have 5 years of driving experience before their insurance rate can go down. So, there is no escaping from paying more expensive car insurance for the first 5 years.
Can someone clarify? Meaning, if the expensive car insurance period is typically age 16-22 and one delays it by 2 years, then the period is now 18-24 (rather than 18-22)?
That was our understanding. Please confirm with your insurance agent.

KlangFool
Rick Manchez 127
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Re: Teenager: Any way to NOT put them on car insurance?

Post by Rick Manchez 127 »

Yes, by simply not doing it. You might regret it though if something happens. It’s a good idea to add your teen driver to your policy if they are driving your car, regardless of their learner's permit status. This way, if your learner driver is involved in a car accident, you can file a claim with your insurer and your car insurance will typically help pay for the cost. In some cases, your policy may extend car insurance coverage to a teen learning how to drive under your policy without actually adding them. However, each state and insurer has its own set of rules, so don’t assume your learner driver is covered under your policy until you’ve spoken to your insurer. There is some more information here https://www.finder.com/car-insurance-fo ... rs-permits
If you want to look for discounts that you or your young driver qualify for, like a student discount, safety discount or defensive driving discount that can help offset the costs. You can also have the teen get their own insurance. If your teen has the funds and owns their own car they can get their own insurance but keep in mind that most states will require written consent by parents for anyone under 18 to buy car insurance so see what the rules are where you are
GAAP
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Re: Teenager: Any way to NOT put them on car insurance?

Post by GAAP »

My parent's solution: "You can get your license when you can pay for the insurance". I was 20 before I could afford that.
“Adapt what is useful, reject what is useless, and add what is specifically your own.” ― Bruce Lee
talzara
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Re: Teenager: Any way to NOT put them on car insurance?

Post by talzara »

creant wrote: Tue Jan 05, 2021 3:56 pm
Jack FFR1846 wrote: Mon Jan 04, 2021 8:04 pm Delaying the license simply delays when the rates skyrocket.
KlangFool wrote: Mon Jan 04, 2021 10:31 pm We found that the kids need to have 5 years of driving experience before their insurance rate can go down. So, there is no escaping from paying more expensive car insurance for the first 5 years.
Can someone clarify? Meaning, if the expensive car insurance period is typically age 16-22 and one delays it by 2 years, then the period is now 18-24 (rather than 18-22)?
More than 50 rate factors are used to calculate auto insurance premiums.

Age and experience are two separate rate factors. If your teen waits two years to get licensed, he will get a discount for being 2 years older, but he will still be classified as an inexperienced operator.

A 16-year-old newly-licensed driver is, on average, more dangerous than an 18-year-old newly-licensed driver. Even though both of them are new to driving, the 18-year-old has a more-developed brain and a better perception of risk.
random_walker_77
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Re: Teenager: Any way to NOT put them on car insurance?

Post by random_walker_77 »

MrBobcat wrote: Mon Jan 04, 2021 6:56 pm
sergeant wrote: Mon Jan 04, 2021 6:39 pm
bloom2708 wrote: Mon Jan 04, 2021 3:52 pm You find an insurance company that assigns a driver to a specific car.

Then you buy a low cost/liability only car and assign the teen driver to the liability only car.

If your teen will be driving your higher value car, then your insurance will go up upon them getting their actual license.

Cincinnati Insurance is one company that assigns a driver to a specific car.
Just make sure the low cost car has excellent safety features. When I was head of our traffic division I saw way too many collisions involving young drivers.
Outside of seat belts and airbags what would you suggest as cost effective safety features?
This makes me wonder, if the teen is only an occasional driver, would it be more cost effective and/or safer to just hire a driver (i.e. uber/lyft)?
cshell2
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Re: Teenager: Any way to NOT put them on car insurance?

Post by cshell2 »

spammagnet wrote: Mon Jan 04, 2021 11:01 pm I haven't read every post so perhaps this was already mentioned, but the cost of insuring your teenager with a license can vary, depending on which car they're associated with as their primary vehicle. Ask the agent which one results in the best rate. It might not be the one you would think.

That doesn't mean they can't drive the others but don't make false claims about which they're driving most of the time.
This is what I did. I asked my agent what the cheapest cars to insure for a teen were and that's the list I used to buy him a car and he was rated on that one (Toyota Camry). On top of that I bought him an OLD car that just needed liability (it was older than he was). There was no increase to insurance the year he had his permit and when he got his license and was rated on the old car the insurance on my vehicle did not change. I paid $76/month for his insurance the first year, it dropped to $65/month the second year with no claims or tickets and good student discount. This year when he headed off to college more than 100 miles away leaving the car at home the insurance premium was slashed to $30/month. He can still drive it when home for breaks and summer and I use it for a spare when he's gone.
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SmileyFace
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Re: Teenager: Any way to NOT put them on car insurance?

Post by SmileyFace »

creant wrote: Tue Jan 05, 2021 3:56 pm
Jack FFR1846 wrote: Mon Jan 04, 2021 8:04 pm Delaying the license simply delays when the rates skyrocket.
KlangFool wrote: Mon Jan 04, 2021 10:31 pm We found that the kids need to have 5 years of driving experience before their insurance rate can go down. So, there is no escaping from paying more expensive car insurance for the first 5 years.
Can someone clarify? Meaning, if the expensive car insurance period is typically age 16-22 and one delays it by 2 years, then the period is now 18-24 (rather than 18-22)?
My understanding is that this, like so many other things about auto insurance, is state dependent. The easiest thing for you to do would be to call an agent and ask these questions to see what applies to you and your state (or let us know your state - then someone with specific experience in the state can provide more info). Many of the statements made by others may actually be FALSE for you in your state.
One thing that doesn't seem fair, at least in our state, is the rates are FAR higher for teenage boys than they are for teenage girls (since statistically they are more prone to accidents earlier).
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