Auto Insurance and New Drivers

**bjl584** · 08-23-2011, 08:40 AM

When I turned 16 I got my own policy. I got a nice discount for taking a driver's ed course at my high school.

Adding her to your policy may be a little cheaper, but if she has an indicent it could raise rates for everyone, not just her.

It's been awhile since I was 16, so laws and policies may have changed. You should call your agent and ask which is the best way to go.

**JoshuaHeckathorn** · 08-23-2011, 09:04 AM

Adding her to your own policy is generally the cheapest way to go, which is why most people take that route.

**Robert742** · 08-23-2011, 06:44 PM

Originally posted by JimInOK View Post

My DD will become a new driver next spring. My plan was to give her the car I am currently driving and then get something different for myself. I say 'give', but she will have some financial responsibilities to go along with it.

Does anyone know how insurance companies handle new drivers? I had read somewhere that they will consider new drivers to be the primary driver on the highest rated car on the policy. Any truth to that? Am I better off having her be on a stand-alone policy? My DW's car will be the highest rated vehicle on our policy.

Hi, Jim! I have many years experience selling & servicing auto insurance, so hopefully, you will find my input useful.

It sounds to me like once your daughter is licensed, she will have a car, you will have a car, and your wife will have a car. Most likely, your best option (i.e. the least expensive)is to keep all 3 cars on one policy, keep them all registered in your name, and add your daughter as a driver.

Since you have 3 cars & 3 drivers in your household, your daughter will be rated as a principal driver (occasional rating can be less expensive) of one of your cars. Most insurance companies will let her be rated on the car she drives most often, or the least expensive car. However, some insurance companies have moved to a "blended" rating, so even though your daughter is rated on one car, she will also increase the rates, possibly slightly, of your other cars. Not too many companies will require her to be rated on the most expensive car. If your insurance company has a "blended" rating plan for drivers, and you and your wife have new cars, there is a slight possibility a separate policy for your daughter may have a lower rate, if it avoids the blended rate on your policy.

Call your insurance company, tell them the situation, and they can show you rates and recommend the best course of action for you.

Having a child get licensed to drive is one of those life changes when it makes sense to shop your insurance to make sure you pay a decent rate. The insurance company with the best rates for you now may have the highest rates for young drivers. Some insurance companies will charge you for your daughter when she has a permit, and some wait until she is licensed.

Max out your discounts. If your daughter is a full time student and has a "B" or better average, she should be eligible for a good student discount. Other discounts are for taking driver's training, or a driver safety course authorized by the insurance company, & living away at school without a car over 100 miles from home.

Teens can be expensive for auto insurance, but unless you are in Montana, it will be less expensive for a daughter, than it would be for a son. Let me know if you have any questions.

**Gary Barzel** · 08-31-2011, 03:06 AM

As bjl584 mentioned some insurers offer discounts for driver-safety programs, cutting costs for kids who take a special class, watch a DVD, or read a driver safety book and take a test. Ask your insurer what your son or daughter needs to do to qualify. Also if your daughter has good grades in school it can help, as most insurers offer a big discount for young drivers who maintain at least a B average in high school or college.

**Frugal** · 08-31-2011, 02:06 PM

I used to work at an insurance office, and generally speaking, daughters were indeed cheaper to insure than teenage boys. They tended to have the highest rates (in my experience). I would also tell you to call your insurance agent and ask about rates, and then shop around different agencies or online.

**cypher1** · 09-01-2011, 05:51 AM

Those are days I do not miss (for me being a 18yr old male) for auto insurance rates. My parents were smart and had me on separate policy. As others said, definitely have them shop around for quotes. Good grades/driving program did offer discount back in the day. Granted she's 16, good credit history is another factor to consider down the road. I don't know if it matters anymore, but having a short daily commute for school/work was another factor. Depending on value of car, look at raising deductible to 1000 if that makes a big difference.

**photo** · 09-01-2011, 08:20 AM

Originally posted by cypher1 View Post

My parents were smart and had me on separate policy.

This is a case of the same advice not working for everyone. If my children were on separate policies, it would be a lot more expensive than having them included on our policy. A single policy would not have the discounts for multiple lines (home insurance with the same company), multi-vehicles, accident-free, and so on.

It's worth the time to investigate all options.

**cypher1** · 09-01-2011, 08:55 AM

Originally posted by photo View Post

This is a case of the same advice not working for everyone. If my children were on separate policies, it would be a lot more expensive than having them included on our policy. A single policy would not have the discounts for multiple lines (home insurance with the same company), multi-vehicles, accident-free, and so on.

Thats true for everyone's situation being different. My parents felt that any responsibilities for car should fall upon the driver, outside their policy. That included buying vehicle, repairs/maintenance, gas, and insurance.

Auto Insurance and New Drivers