Auto Insurance for new driver (child)

[Spendit]

Anybody been through this recently - best route to go: on his own, under parents policy.....?

Boy turns 16 end of this month - passed all his tests, now to get his actual license and get him some insurance.

[eriksat1]

I had 2 kids now 23 and 20 best cheapest way is add them onto your policy. It doesn't hurt to shop around. Progressive, Geico, etc. My 20 year old is still on my policy.

[karpbuster]

Add on to your policy. I use USAA, but I believe Farmers has great rates for kids with good grade discounts and others.

[Phil T]

After you add them to your policy, make it clear that they pay for anything they do that causes your rates to increase.

[Burr]

Just adding them to your policy will absolutely be cheapest as long as they never get into an accident, or have a claim.

If you think like me, that a new driver WILL be in a fender bender, they are best off with an inexpensive vehicle, and a high limit liability policy, in their own name. If they bend a fender, either scrap the car and get another, or fix it with the pocket in the jeans your wearing. Nothing says you have to carry collision if the vehicle is not financed.

Worst possible scenario is they drive too expensive, too new, fully insured vehicle, get in an accident, and you learn that the rate increase is on every policy you have with that insurer, including your homeowners. I've seen it happen.

[Mike W1]

When my son was added with his own car naturally the rates went up. What really angered me was I found out much later they also had him on wifes and my car which he NEVER drove. Should have looked at the paperwork better than I did. There's got to be a way around that particular problem I'd think.

Been there, still there for another few years w/2 kids, youngest is now 18. With State Farm, when the kid/s are added to one car, they are covered to drive all of them.

The type of car that they are added-to or "rated" on will make a big difference. I had a 12 yr. old Jeep Wrangler that I was going to put my son on for the insurance. It was going to cost an additional $1,000/year. Instead, I added him to the 10 yr. old Impala with 100K miles and the insurance only increased $400/year.

Talk to your insurance agent. Whenever we buy/sell a car we move the kids around as principal drivers to get the best rates. Insurance companies don't like kids driving Jeeps or other SUVs or new cars; Rate jumps like crazy.

Also, when/if they go off to college you can put them on as a part-time driver and the rate will drop.

[vteye]

Good advice so far, I would ask your agent in advance which way is best for you. Considerations to discuss with agent, ownership of the car is key. If you own the vehicle, son should be added. Coownership some states allow that vehicle to be added to parents policy some don't. Value of the car - good advice on prior post if its paid and loss you can afford to absorb then definitely don't buy collision. Liability coverage do you have enough coverage in event son/daughter has a bad incident you are covered? Common sense prevails be sure to ask the difficult questions:
What if my son delivers pizza for Dominoes is the vehicle covered? Can he drive the other household cars on occasional basis ie prom etc. What happens in a summer or two when he heads off to college, rates go down?
Good student discount included - driving training discount?

Finally - keep being a parent, my 3 sons were taught an reminded driving is a priviledge not a god given right. You screw around in my car you will not drive till you can afford to buy your own car. I paid for coverage as long as they maintained good grades. One son licensed at 17 as he just was not ready (get good grades) an recently graduated from college with honors.

[eriksat1]

When you add them to your policy you are still covered even if they happened to be driving any of your cars.

[Hot Runr Guy]

Also, depending on the insurer, ask if they have a program like TeenSmart, Teen Safe, things like that. Allstate offers a discount if they complete an online or DVD program.

HRG