Teen Driver Addition to Insurance

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AKBTX14
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Teen Driver Addition to Insurance

Post by AKBTX14 »

I have a 16 year old who got his license 2 weeks ago. He is doing high school online at least to the end of this year and drives only once or twice in 2 weeks with a parent (food pickup etc.)

SO I forgot to tell insurance company. He does not have a vehicle of his own and did in-person driver education at a driving school in TX.

Any pointers I need to tell insurance company when I add him to our insurance?

Thanks
livesoft
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Re: Teen Driver Addition to Insurance

Post by livesoft »

Did you tell insurance when he had a learners permit?
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OnTrack2020
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Re: Teen Driver Addition to Insurance

Post by OnTrack2020 »

livesoft wrote: Thu Sep 10, 2020 8:57 pm Did you tell insurance when he had a learners permit?
Our insurance does not add them until they get their actual license.

OP, our daughter (4th child) just got her license a few weeks back. Provide your insurance company with a copy of his last grade report for a good student discount, if applicable. Also, they will want to know if he took driver's education--you can provide them with a copy of the certificate he received. Add him on your insurance ASAP.
sparksfly
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Re: Teen Driver Addition to Insurance

Post by sparksfly »

OnTrack2020 wrote: Thu Sep 10, 2020 9:44 pm
livesoft wrote: Thu Sep 10, 2020 8:57 pm Did you tell insurance when he had a learners permit?
Our insurance does not add them until they get their actual license.

OP, our daughter (4th child) just got her license a few weeks back. Provide your insurance company with a copy of his last grade report for a good student discount, if applicable. Also, they will want to know if he took driver's education--you can provide them with a copy of the certificate he received. Add him on your insurance ASAP.
+1

and be ready for hefty jump in premium...
Topic Author
AKBTX14
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Re: Teen Driver Addition to Insurance

Post by AKBTX14 »

livesoft wrote: Thu Sep 10, 2020 8:57 pm Did you tell insurance when he had a learners permit?
In our state kids drive on parent's insurance when they get a driving permit and until they get a driver's license.
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eye.surgeon
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Re: Teen Driver Addition to Insurance

Post by eye.surgeon »

AKBTX14 wrote: Thu Sep 10, 2020 8:53 pm I have a 16 year old who got his license 2 weeks ago. He is doing high school online at least to the end of this year and drives only once or twice in 2 weeks with a parent (food pickup etc.)

SO I forgot to tell insurance company. He does not have a vehicle of his own and did in-person driver education at a driving school in TX.

Any pointers I need to tell insurance company when I add him to our insurance?

Thanks
Tell them now if you aren't financially prepared to self insure for any accident he has because they will most surely deny a claim involving him as it is. And prepare for 3-6 years of pain. Spoken as a survivor of two teen drivers.
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Topic Author
AKBTX14
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Re: Teen Driver Addition to Insurance

Post by AKBTX14 »

OnTrack2020 wrote: Thu Sep 10, 2020 9:44 pm
livesoft wrote: Thu Sep 10, 2020 8:57 pm Did you tell insurance when he had a learners permit?
Our insurance does not add them until they get their actual license.

OP, our daughter (4th child) just got her license a few weeks back. Provide your insurance company with a copy of his last grade report for a good student discount, if applicable. Also, they will want to know if he took driver's education--you can provide them with a copy of the certificate he received. Add him on your insurance ASAP.
I thinking along the lines that the kid will drive probably less than 50 miles until the end of the year due to Covid. People are not driving and the cost to insurance is still high!
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FiveK
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Re: Teen Driver Addition to Insurance

Post by FiveK »

AKBTX14 wrote: Thu Sep 10, 2020 10:37 pm I thinking along the lines that the kid will drive probably less than 50 miles until the end of the year due to Covid. People are not driving and the cost to insurance is still high!
Low amount of miles at risk. High risk per mile, especially in light of the low miles (thus less experience) driven.

The choice to self-insure or not is yours. You could also choose not to allow him to drive until he can pay for the insurance, not allow him to drive until school starts, etc.
Spirit Rider
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Re: Teen Driver Addition to Insurance

Post by Spirit Rider »

The cost to self-insure liability is million$. Not a good idea.
TimeMan
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Re: Teen Driver Addition to Insurance

Post by TimeMan »

I'm in Texas. It is expensive. I have a 17.5 yo daughter and our insurance about trippled to over $800/month. Granted we have 4 cars, and my 2 are a Porsche GT3 and Challenger. You cannot restrict them to a single vehicle unfortunately, thanks Fresh Prince...

I was given the option of having a waiver that says she would not be covered driving ANY vehicle, or going from ~$300/mo to ~$800/mo.

I pulled quotes from both Allstate where we are and other companies, trying to put just her and myself on her vehicle as a single policy. It was even more expensive.

In the early 90's my insurance at 16 was like $150...crazy inflation there.

My son is 14.5, I might just not let him get his license until he is 18 :O
MDfan
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Re: Teen Driver Addition to Insurance

Post by MDfan »

We had 5 cars and 5 drivers. Along with about 4 minor accident/fender benders that were expensive enough to have to go through insurance. It was very painful for about 7 years. I think at one point, we were paying almost $9k per year. I switched insurance every year for those 7 years looking for the best rate. We now have Geico and it's the first time in almost 10 years we've had the same insurance co. for more than a year.
Deblog
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Re: Teen Driver Addition to Insurance

Post by Deblog »

Make sure you check and get quotes from other insurance for all your cars once you have a teen driver. I had same company since I was 16 years old and the rates went through the roof in my state (Ohio) every states rates are so different that you need to check for yourself where you are. We went with State Farm who had a program at the time for teen drivers to complete and we saved a ton of money. Just check around, you may be surprised at cost difference.
Jack FFR1846
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Re: Teen Driver Addition to Insurance

Post by Jack FFR1846 »

I'm surprised your insurance agent didn't call you the day he got his license. Mine did with both my sons. Our state's registry (what we call our dmv) sends notices immediately upon licence. For my younger son, I found out he passed by the call from my agent. Even before he texted me that he passed. It's quite possible that I knew he passed before he did.

Talk with your agent. For years, I've specifically excluded my kids and my wife from some of the cars. I and the person being excluded have to both sign a separate form for each person, for each car. It saves significant money. The penalties are huge, if the excluded person drives and then a claim is filed. Insurance on the car goes to state minimum. I believe it's liability only.....and at the state minimum, which I believe is $5k total. Anything over this will come out of your pocket. So if there is any chance whatsoever that the kid might ever drive the car, don't do the exclusion.

And yes.....the rates are going to jump. With both our kids, it tripled. Even at an older starting point. My younger son didn't get his license until he was 18 and with driving school. He's listed as primary on our 09 Fusion with liability and comp only. $2200 a year. My 19 Crosstrek where I'm primary and has full coverage is about $800 a year.
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livesoft
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Re: Teen Driver Addition to Insurance

Post by livesoft »

AKBTX14 wrote: Thu Sep 10, 2020 10:33 pm
livesoft wrote: Thu Sep 10, 2020 8:57 pm Did you tell insurance when he had a learners permit?
In our state kids drive on parent's insurance when they get a driving permit and until they get a driver's license.
And my state as well, but that doesn't mean you don't talk to your insurance company.

I don't recall our teenagers being particularly costly to insure. I see now that my 24-year-old son is $400 more a year to insure than my spouse or myself.
Last edited by livesoft on Fri Sep 11, 2020 8:16 am, edited 1 time in total.
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acegolfer
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Re: Teen Driver Addition to Insurance

Post by acegolfer »

Question: Suppose my kid gets a license but we won't let him drive. Are we obligated to inform the insurer and include him to our policy?
livesoft
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Re: Teen Driver Addition to Insurance

Post by livesoft »

acegolfer wrote: Fri Sep 11, 2020 8:08 am Question: Suppose my kid gets a license but we won't let him drive. Are we obligated to inform the insurer and include him to our policy?
I don't see how you are obligated to include him. It would be like including your neighbor I would think. However, does he ever drive one of his friend's vehicle? You may be better off getting making sure he has a learner's permit and making him drive whenever he is in the vehicle with you. That's what we did with both our children, so no extra insurance cost, but plenty of practice driving. I know neither of our children had a license at age 16, but they did have learners permits.
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OnTrack2020
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Re: Teen Driver Addition to Insurance

Post by OnTrack2020 »

acegolfer wrote: Fri Sep 11, 2020 8:08 am Question: Suppose my kid gets a license but we won't let him drive. Are we obligated to inform the insurer and include him to our policy?
What is the point of this? If you are going to let them get their license, then why not let them drive, even if only occasionally, and be added to your insurance? Otherwise, why have them get it in the first place?

I know of one couple that took their college-age child off of their policy after one or two accidents because their rates went through the roof. They said she had to use Uber.
delamer
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Re: Teen Driver Addition to Insurance

Post by delamer »

If you don’t already have it, get umbrella liability insurance coverage.

That’s in addition to adding him to your auto insurance as a secondary driver with very few miles. He may get a discount for good grades and/or taking online training provided by your insurer. You can check into raising your deductible to reduce the cost.

In my state, it is illegal to drive without insurance.
acegolfer
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Re: Teen Driver Addition to Insurance

Post by acegolfer »

OnTrack2020 wrote: Fri Sep 11, 2020 9:39 am
acegolfer wrote: Fri Sep 11, 2020 8:08 am Question: Suppose my kid gets a license but we won't let him drive. Are we obligated to inform the insurer and include him to our policy?
What is the point of this? If you are going to let them get their license, then why not let them drive, even if only occasionally, and be added to your insurance? Otherwise, why have them get it in the first place?

I know of one couple that took their college-age child off of their policy after one or two accidents because their rates went through the roof. They said she had to use Uber.
Isn't it true that the longer one has the license, the lower the insurance rate? Suppose John goes to college in 2024 and needs a car. Isn't it better for him to have his license acquired in 2020 rather than 2024? I'm just guessing here and hope someone can chime on this.
bloom2708
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Re: Teen Driver Addition to Insurance

Post by bloom2708 »

Teen drivers need experience. Inexperienced at 16, 17, 18 won't change much. Get them driving.

You need to find out if your insurance company pools drivers together or assigns a driver to a car.

Ours assigns a driver to a car. Each of our 2 drivers (20 and 17) have a liability only, decent enough car they are assigned to. Insurance isn't terrible but we are taking on the risk. Each has a fender bender in their portfolio already. No surprisingly, both dents made them much more aware and much better drivers. It is real out there. Real chaos.

They should be added to insurance the day they get their license. Good tip on the "good student" discount.
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Jack FFR1846
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Re: Teen Driver Addition to Insurance

Post by Jack FFR1846 »

A few things....

If a new driver is part of the household, they absolutely need to be on the policy. If you're going to make them take Uber, bike and walk, then the only way to avoid this is for them to surrender their license.

The new driver also will be added to your umbrella policy.....or will be excluded. Both of my sons, after doing their initial car stupidity (tickets, accidents, etc) were excluded from my umbrella. Not because I wanted that....because the insurance company would not continue the policy without excluding them. As the tickets, accidents fall away, they're again able to be added to the policy.

For a college student, away at college, you might be able to get a student away discount (not all companies offer this). In general, they need to be at least 100 miles from home.

You might ask whether the kids should have their own car and their own policy. Maybe. But if they still live in your home, the same things apply. My older son bought his first car last month. When applying for insurance, he included the request to get the form to specifically exclude his younger brother, who's had accidents. They both signed the form and his rates were not bad.
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Topic Author
AKBTX14
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Re: Teen Driver Addition to Insurance

Post by AKBTX14 »

Thanks all.

I got him on our insurance. We have $1 Million Umbrella and I confirmed with the insurance that any new car/driver added to policy at the home address gets automatically added to Umbrella.

The insurance rep asked for above 3.0 GPA transcript and driver's ed certificate.

Both docs emailed and the quote to add him was about $800/year additional. We moved to Amica last year after checking quotes for with couple of national companies and local independent agents.

Regards.
JBTX
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Re: Teen Driver Addition to Insurance

Post by JBTX »

TimeMan wrote: Fri Sep 11, 2020 12:44 am I'm in Texas. It is expensive. I have a 17.5 yo daughter and our insurance about trippled to over $800/month. Granted we have 4 cars, and my 2 are a Porsche GT3 and Challenger. You cannot restrict them to a single vehicle unfortunately, thanks Fresh Prince...

I was given the option of having a waiver that says she would not be covered driving ANY vehicle, or going from ~$300/mo to ~$800/mo.

I pulled quotes from both Allstate where we are and other companies, trying to put just her and myself on her vehicle as a single policy. It was even more expensive.

In the early 90's my insurance at 16 was like $150...crazy inflation there.

My son is 14.5, I might just not let him get his license until he is 18 :O
Similar to us in TX. Car Insurance about tripled, and we had only 2 other normal cars.

Three weeks after we bought her first car she totalled it. It isn't shocking rates are so high.
Spirit Rider
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Re: Teen Driver Addition to Insurance

Post by Spirit Rider »

acegolfer wrote: Fri Sep 11, 2020 9:47 am Isn't it true that the longer one has the license, the lower the insurance rate? Suppose John goes to college in 2024 and needs a car. Isn't it better for him to have his license acquired in 2020 rather than 2024? I'm just guessing here and hope someone can chime on this.
This is correct.

My stepdaughter didn't get her licence until she was almost 19. She lived with her father and he wouldn't let her drive on her learner's permit, wouldn't pay for driver's education or approve her getting a license.

She finally paid for the driver's ED including paying for the use of the vehicle and the instructor driving to the DMV for the driving test. As the agent explained she will be paying a premium surcharge for reduced license time until age 25.
TimeMan
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Re: Teen Driver Addition to Insurance

Post by TimeMan »

JBTX wrote: Sat Sep 12, 2020 2:58 pm
TimeMan wrote: Fri Sep 11, 2020 12:44 am I'm in Texas. It is expensive. I have a 17.5 yo daughter and our insurance about trippled to over $800/month. Granted we have 4 cars, and my 2 are a Porsche GT3 and Challenger. You cannot restrict them to a single vehicle unfortunately, thanks Fresh Prince...

I was given the option of having a waiver that says she would not be covered driving ANY vehicle, or going from ~$300/mo to ~$800/mo.

I pulled quotes from both Allstate where we are and other companies, trying to put just her and myself on her vehicle as a single policy. It was even more expensive.

In the early 90's my insurance at 16 was like $150...crazy inflation there.

My son is 14.5, I might just not let him get his license until he is 18 :O
Similar to us in TX. Car Insurance about tripled, and we had only 2 other normal cars.

Three weeks after we bought her first car she totalled it. It isn't shocking rates are so high.
Bought with cash my daughter's Mazda CX5...used 1 year, 4k miles...made sure the car fax was clean. Got the colors she wanted, interior and exterior. Perfect car, so I kicked in a bit more because it was the "top tier" of the model and she's a fantastic kid who kills it in school.

About 3 months after she gets it, backing out of the garage (Hell I had my wife park in the driveway since hers was a 2012 vs a 2017) and she sees my wife pulling in behind her. Rather than just stop and figure it out, she over-corrects, at low speed, and catches the brick on the garage opening and stops, then she panics and puts it in drive and goes forward, causing more damage. Understandable, panic, learning lesson, stop and think. I buffed out the scratches but the side is still all dented. Say when you get more confident maybe I'll fix it.

6 months later, parking lot, confusion over who has the right of way. She did, but hesitated, other guy in a jetta went at the same time she did, she panic'ed and hit the gas.

I drove over and told the guy, get a quote and text me. Low speed parking lot incident, was $15k between the two cars. I went ahead and claimed it.

She still has the OTHER side dented. Couldn't screw up the dented side :(

Got a quote for Umbrella Insurance from my company last week who handles all my stuff and I'm maxed out on coverage...$1,500/yr because of that claim.

PARENTS, PLAN FOR INSURANCE WHEN YOUR KIDS TURN 16!!
JBTX
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Re: Teen Driver Addition to Insurance

Post by JBTX »

TimeMan wrote: Thu Sep 17, 2020 10:22 pm
JBTX wrote: Sat Sep 12, 2020 2:58 pm
TimeMan wrote: Fri Sep 11, 2020 12:44 am I'm in Texas. It is expensive. I have a 17.5 yo daughter and our insurance about trippled to over $800/month. Granted we have 4 cars, and my 2 are a Porsche GT3 and Challenger. You cannot restrict them to a single vehicle unfortunately, thanks Fresh Prince...

I was given the option of having a waiver that says she would not be covered driving ANY vehicle, or going from ~$300/mo to ~$800/mo.

I pulled quotes from both Allstate where we are and other companies, trying to put just her and myself on her vehicle as a single policy. It was even more expensive.

In the early 90's my insurance at 16 was like $150...crazy inflation there.

My son is 14.5, I might just not let him get his license until he is 18 :O
Similar to us in TX. Car Insurance about tripled, and we had only 2 other normal cars.

Three weeks after we bought her first car she totalled it. It isn't shocking rates are so high.
Bought with cash my daughter's Mazda CX5...used 1 year, 4k miles...made sure the car fax was clean. Got the colors she wanted, interior and exterior. Perfect car, so I kicked in a bit more because it was the "top tier" of the model and she's a fantastic kid who kills it in school.

About 3 months after she gets it, backing out of the garage (Hell I had my wife park in the driveway since hers was a 2012 vs a 2017) and she sees my wife pulling in behind her. Rather than just stop and figure it out, she over-corrects, at low speed, and catches the brick on the garage opening and stops, then she panics and puts it in drive and goes forward, causing more damage. Understandable, panic, learning lesson, stop and think. I buffed out the scratches but the side is still all dented. Say when you get more confident maybe I'll fix it.

6 months later, parking lot, confusion over who has the right of way. She did, but hesitated, other guy in a jetta went at the same time she did, she panic'ed and hit the gas.

I drove over and told the guy, get a quote and text me. Low speed parking lot incident, was $15k between the two cars. I went ahead and claimed it.

She still has the OTHER side dented. Couldn't screw up the dented side :(

Got a quote for Umbrella Insurance from my company last week who handles all my stuff and I'm maxed out on coverage...$1,500/yr because of that claim.

PARENTS, PLAN FOR INSURANCE WHEN YOUR KIDS TURN 16!!
Our umbrella went up a lot, not that much though. But then umbrella dropped us. At that point she was adult living away from home so we got her own policy and put car in her name. She has sincd had 2 or 3 more wrecks and two tickets. I'm shocked GEICO renewed.
wfrobinette
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Re: Teen Driver Addition to Insurance

Post by wfrobinette »

TimeMan wrote: Fri Sep 11, 2020 12:44 am I'm in Texas. It is expensive. I have a 17.5 yo daughter and our insurance about trippled to over $800/month. Granted we have 4 cars, and my 2 are a Porsche GT3 and Challenger. You cannot restrict them to a single vehicle unfortunately, thanks Fresh Prince...

I was given the option of having a waiver that says she would not be covered driving ANY vehicle, or going from ~$300/mo to ~$800/mo.

I pulled quotes from both Allstate where we are and other companies, trying to put just her and myself on her vehicle as a single policy. It was even more expensive.

In the early 90's my insurance at 16 was like $150...crazy inflation there.

My son is 14.5, I might just not let him get his license until he is 18 :O
I get the increase on the 4 cars because of the race cars but you and her on 1 car at more than $500 a month? Does she have accidents or tickets?

I know it varies by state but we will go from 1000 every 6 months a month for a Q7, camry and CX5 to 1500 every 6 when we add my daughter to policy.

I switched to NC farm bureau and saved a ton. You may want to look at Texas Farm Bureau Insurance. They will never come up in any quite engine and they don't have dozens of agents in every town but the have great rates and great service.

They are ranked as the best insurer in Texas by JD power.
Rookie
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Re: Teen Driver Addition to Insurance

Post by Rookie »

Spirit Rider wrote: Fri Sep 11, 2020 12:12 am The cost to self-insure liability is million$. Not a good idea.
:thumbsup New drivers do make mistake.
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