Teen Male and Car Insurance

[Scanner]

I was talking to someone the other day. We live in NJ, which is the highest auto insurance rates in the US (and taxes, and # of lawyers per capita. . .and healthcare. . .)

They had a policy for 2 normal cars for husband/wife for $2400/year. When they got a quote for adding their 17 year old male, the insurance company told them $7400. They shopped around and found one for $4800.

Anyway, I totally understand why this is so, increased liability risk . . .but I am wondering, does anyone know, once the child turns 18, can they just have him get a 1-800-SAFE-AUTO minimum type of policy for himself, rather than being on his parent's policy, esp. if the 18 year old paid a "rent" to their parents to show he was "on his own" (and assumedly had no major assets)?

Or is the "household" responsible/liable despite "emmancipation" from the minor at 18 years old?

[PrincessPerky]

In Pa you can make your kid get their own policy from day one..I know cause my parents forced me to do so.

Course I left a year later so it was just as well.

[disneysteve]

Scanner, I don't think anything changes at 18. I'm pretty sure all licensed drivers in the house need to be covered on the same policy.

[red92s]

I don't know why you couldn't have them on their own policy, although if the idea is to have them pay for it, there is probably still savings by keeping it on the same policy because of multi-car and multi-policy discounts and having them cough up the cash to you.

When I was a senior in high school I bought a sporty two door red car. Then I was in an accident in my moms van. Then I was in an accident in my sporty red car. I don't remember what my insurance was, but probably in the $3k/year range, but I ended up paying for the increased premiums.

9 years and a totaled car later, I know own a much nicer newer primary vehicle, renters insurance and a classic car and have better coverage on my own and pay $90 a month.

[LuxLiving]

My youngest two boys had a joint policy, which gave them a multi-car discount. There was no way that they were going to be on our policy, meaning we had no desire to be held financially liable for any of their mistakes. You want to drive? You get your own policy.

Though I'm not sure how each state's laws apply.

[johnins2009]

The main reason is to help the child with keeping the premium costs low.

[cicy33]

Scanner, I don't think anything changes at 18. I'm pretty sure all licensed drivers in the house need to be covered on the same policy.

I could be wrong but i think that only applies to drivers of your vehicles. For example if you had a roommate then they would not be on your policy just because they lived under the same roof. FYI, my daughter paid her share on my policy until she became 18 and then got her own policy. It wasn't too bad but then again we are through USAA

[BlackDiamond]

Scanner, I don't think anything changes at 18. I'm pretty sure all licensed drivers in the house need to be covered on the same policy.

They do. Or excluded.

And if he's excluded, make sure he NEVER drives the car.

I work in insurance and people flip out at me on a weekly basis because they have claims denied because their unlisted, or excluded drivers crashed their car.

[tzsgti]

Let me tell you that i am in NY and experience the same thing when I first got my license.

First of all it doesn’t matter what age you are. If a son, daughter, wife lives in the same household as they carry a driver license they are obligated to be on your plan unless they have their own policy. As long as you provide proof of insurance from his or her provider you will not have to add them onto you policy.

My dad did not let us get our license until 18 due to the fact that we would have to be on the policy. When I first started driving my dad added me to his policy and they decided to put me on one of his most expensive cars. It cost $6400 a year: eek:

We then decided due to the fact that he has expensive cars he would put the beater he bought me under my name and that cut the premiums by half. But still a pretty penny at 300 plus a month.

I think a parent should give a kid a choice if they cannot afford it. Either put up the money for the insurance of forget about getting a license

[tzsgti]

They do. Or excluded.

And if he's excluded, make sure he NEVER drives the car.

I work in insurance and people flip out at me on a weekly basis because they have claims denied because their unlisted, or excluded drivers crashed their car.

Depends on the insurance company. I was driving my dads car and had an accident. It was only then i was forced to be on the policy. They did not deny the claim they just made me be on the policy.

[jIM_Ohio]

Scanner- who OWNS THE CAR and where does the kid live?

if kid is driving a car with title in parents name, you are best to keep all cars on one policy. If kid lives under your roof, best to have him on your policy.

Check with your agent, every state is different.


Here is my thought- car registered in your name, kid has safe auto policy in his name, and he rear ends me. I cannot get money from him, but I find fault with car owner, so I decide to sue you because you were dumb enough to let him drive and not be supervised.

If he lives at home, and your car policy did not cover that, you know what you might lose? YOUR HOUSE?

Too much risk
keep everything on one policy until kid moves out