teenage new drivers/car insurance increases

[cookiedough]

How many of you have 16-18 year old teenage drivers and have to try to attempt to afford car insurance?

My 16 year old boy got his drivers license Dec. 1st and once again as it did with my then 16 year old daughter 2 years ago,  insurance jacked up the rates another 100 bucks EACH for 3 vehicles.  That is a near 600 dollar price increase EVERY 6 months on 3 vehicles full insurance which is near double our insurance rates when we did not have teenage drivers just the 2 of us.  NUTS!    I would HATE to see if both kids NOT on high honor roll - gee whiz!!!

Have had to switch insurance companies now like 5 times in 10 years due to NO FAULT, NO ACCIDENTS EVER on our policy simply because these insurance companies (all of them I have found out)  like to jack the rates up with NO reason whatsoever even before we had teenage drivers. 

Calling around to various other insurance agencies once again as I have had to do every 1-2 years to find a legitimate and honest insurance company.  I understand increasing the rates, but DOUBLE to what they use to be - GET REAL!!!!

Now I know why a few parents I know have not given permission with even a graduated high schooler age 18 and a few others in my boys 16 year old sophomore class to get their drivers licenses due to not being able to afford the 6 month premiums.   Is total B.S.  I know when I was growing up age 16/17,  my parents never said anything about too much of an insurance rate increase some 30 years ago.  Why so much now??  It is bad enough to just afford basic car insurance, let alone having to double the premiums just by adding 2 16/18 year old drivers onto our 3 vehicles, one of which they will NEVER drive ever. 

I am tempted to fix up my dad's old 1986 caprice classic needing new brakes (200 bucks or so) and just putting liability on that car letting them on their own policy with that car alone, driving that clunker car so I can take them off our insurance on 3 newer vehicles, if that is even possible? 

Heck,  one insurance company I called wanted OVER 1000 bucks EVERY 6 months on one vehicle if I decided to put one of our newer cars under our age 16 year old driver as a stand alone driver.  NUTS! 

[Beardo]

Part of it has to do with the fact people keep eating up the gizmos and gadgets the car companies put out there. When we were 16, if you slid into someone, you unbolt the bumper and put on a new one. Now the same fender bender has thousands of dollars of plastic, sensors, cameras, etc.

[vanagon40]

. . . I am tempted to fix up my dad's old 1986 caprice classic needing new brakes (200 bucks or so) and just putting liability on that car letting them on their own policy with that car alone, driving that clunker car so I can take them off our insurance on 3 newer vehicles, if that is even possible?  . . .

Most major insurance companies will NOT allow you to exclude your resident dependents from coverage on your vehicles. I know my brother-in-law sold his Corvette due to the having to rate it for his teenage sons (and Nationwide would not allow the teenagers to be excluded). Also, if you are able to get separate policies for your children, remember to read the policy language very closely. It is likely that if your children drove any of your vehicles (or you drove your children's vehicle), there would be no insurance coverage. This would be true even if the vehicle was driven only for an emergency. That said, making your children the primary drivers of an old vehicle with liability coverage only may reduce your rates on your current policy. But do not forget you may be losing safety features such as anti-lock brakes, etc.

As to the more basic issue, your rates doubled as it is likely that the risk of a claim doubled. I have had one accident in the last 15 years. Other than being rear ended last December, my wife has had one accident in the last 35+ years (hit a deer). My oldest daughter crashed into a tree before she graduated HS. My second daughter had no accidents. My son crashed into a telephone pole before he graduated HS. My youngest daughter made it through HS, but rear-ended a bus (and totaled her Toyota) before she turned 22. None of the accidents were the result of impaired driving (unless you count falling asleep at the wheel on the last accident). All my children were honor students and had successfully passed driver's ed. Had my children been driving $20,000 autos with full coverage, you can imagine how much the insurance company would have paid in claims. (And I will not even go into the number of vehicle I crashed before I got married.)

I am not suggesting that your children are not good drivers (or trying to compare your children to my children). I am only trying to explain why statistically, adding a teenage driver to your policy would double the risk for an insurance company.

[cookiedough]

oh, I agree the risk is double, but the premiums should not double. 

Maybe I just do not remember too well, but I find when we 16-18 years old,  were driving some 30+ years ago,  we were much better overall drivers than kids today.  Or not??? 

Like you said,  you crashed your vehicles several times as a young driver.  Maybe things have not changed as much as I thought??  I for one never had a car to drive until out of high school, did not bother me to walk or drive my bicycle until AFTER high school.   A lot of kids think they are entitled to a vehicle to drive age 16 whether newer or a clunker. 

Kids do stupid things that I know first hand, but is nuts to think insurance companies can near double the premiums from say 600 to 1100 every 6 months.  No wonder why parents do not allow their 16-18 year olds to get their drivers licenses?   

[Willow]

oh, I agree the risk is double, but the premiums should not double. 

?????       

[Master Blaster]

I have had USAA for many years now, and my insurance is for any driver.  It has been very good for me, I raised three kids on it, and there was no problems at all.  Mine covers 4 vehicles and goes for 6 months at a time.  Used to be just for Military  officers, but now is for everyone.  Worth a look at.

[Pappy!]

I see kids texting at stop lights. I see kids on the phone at stop lights.
I see the lights turn green and their cars still sitting there while they finish the text or it finally dawns on them that the light has turned (usually because they hear a horn) green.
Their focus goes from the road to the phone in their hand while driving. The insurance companies know this and see the accident numbers from this age group.
But....I do agree that insurance companies are taking advantage of us if they can and when they can.

[The emperor has no clothes]

oh, I agree the risk is double, but the premiums should not double. 

?????       

You know you aren't supposed to be reading that stuff. 

[cookiedough]

I see kids texting at stop lights. I see kids on the phone at stop lights.
I see the lights turn green and their cars still sitting there while they finish the text or it finally dawns on them that the light has turned (usually because they hear a horn) green.
Their focus goes from the road to the phone in their hand while driving. The insurance companies know this and see the accident numbers from this age group.
But....I do agree that insurance companies are taking advantage of us if they can and when they can.

Yah,  have seen it many times young kids at stop lights texting not moving.  I feel like having a one on one in person conversation with those parents and if they think it is no big deal,  feel like locking up those parents for life as well. 

My kids know better and have their cell phones OFF all times while driving.  They know better are not stupid enough to even attempt it since if they do,  they will both be walking until they are out of the house.  I am stricter in some areas than most parents (softer in other areas).  Break the rules ONCE, and it will go against them for a very long time.   Wife tells me to chill out, but I refuse to,  just the way I was brought up.  Parents need to buck up and make their kids mind.  Anytime we go see other parents they always tell us how polite and nice both my kids are.  Isn't that the way it is suppose to be? 

[DarkSideR]

I have a 16 year old daughter who got her license in September. She uses my car to get to and from school. When I called my insurance company to add my daughter as a driver, I was informed that I didnt need to make any changes. Nice! I would have to makes changes to my insurance policy if I gave her the car. That will wait until she goes to college. My agent also told me that my daughter would need to be added if she gets a ticket or gets in an accident. So my daughter has quite the incentive to be a good driver.

To add my daughter as a driver would result  in a large increase, and to give her the car and make her the primary driver would result in a massive increase.

[old2soon]

When my Daughter started driving all I had on my cage was public liability and towing. My rates didn't go up BUT if Daughter was diving and got into a crunch my pay out(s) were cut in half!  She NEVER got into a crunch BUT I was worried some bout that cursed cell phone and her!    Someone mentioned the gizmos and whatchamacallits-AND the average price of a new cage has and continues to SKYROCKET! Insurance Companies have to turn a profit to stay in business!    Wanna take a wild azz guess where dat come from??  RIDE SAFE.

[DarkSideR]

This is one reason why my daughter has only a flip phone. If it's tempting for me to look at my smart phone while driving I know she would. I also do allow gps. She has prepare her route before she leaves the house if she is going somewhere new.

I know, I know. Im a mean one Mr. Grinch.

[Jess from VA]

Put the old car in their name(s) alone, and insure it for them alone.  My dad kicked me off his when I got tickets, so I got my own and paid my own.  Even if you pay it for them, put it all in their names.  Then never drive it, and never let them drive yours.  If you have to go to a separate company, and have one of them make the call to purchase the insurance, do it that way.

This way, if they kill or maim a bunch of people, it's on them, not you and everything you own.  And no negligent entrustment case against you.  I don't care how careful they are, it's still a good plan.

YMMV.    

[Serk]

A few times a month I wake up in a cold sweat screaming in abject terror at the thought of June 17th, 2027...

On that day I'll have two 16 year old boys and one 16 year old girl to add to my insurance...

2027 might seem like a long way off, but those far out dates have a way of sneaking up on ya' I've learned!

[cookiedough]

Put the old car in their name(s) alone, and insure it for them alone.  My dad kicked me off his when I got tickets, so I got my own and paid my own.  Even if you pay it for them, put it all in their names.  Then never drive it, and never let them drive yours.  If you have to go to a separate company, and have one of them make the call to purchase the insurance, do it that way.

This way, if they kill or maim a bunch of people, it's on them, not you and everything you own.  And no negligent entrustment case against you.  I don't care how careful they are, it's still a good plan.

YMMV.    

Unable to do that, as long as live in the same house MUST be on all 3 vehicles regardless if he only drives 1 car all the time.  I called 5 insurance companies now past 2-3 hours and all say the same thing.  Also, cannot just have separate policy for him.  If was possible, am sure would be over 1K per 6 months for him alone on one 2014 car.  This is NUTS. 

Now I see why parents in WI do not allow their kids to get a drivers license until out of the house on their own.  I know several families in our small town of 1100 who do not allow their kids to get their drivers license and some are even out of high school already still living at home age 18.  Nice way to start out your adulthood age 18 and no vehicle to drive.  Probably like some on this board,  some of us like me never had a car to drive until out of high school age 18 as well, but did get a drivers license at least when age 16. 

3 hours now on phone to several companies going at it for me with multiple insurance companies.  NOt asking for much, just say another 150 bucks off every 6 months to make it feasible or should I say reasonable.

Called USAA and they do not allow non-military families either even if my deceased Dad served in the Korean War,  he did not have USAA ever so am not eligible.  Gotta love it...

[vanagon40]

Put the old car in their name(s) alone, and insure it for them alone.  My dad kicked me off his when I got tickets, so I got my own and paid my own.  Even if you pay it for them, put it all in their names.  Then never drive it, and never let them drive yours.  If you have to go to a separate company, and have one of them make the call to purchase the insurance, do it that way.

This way, if they kill or maim a bunch of people, it's on them, not you and everything you own.  And no negligent entrustment case against you.  I don't care how careful they are, it's still a good plan.

YMMV.    

Must vary from state to state. In Indiana, the parent MUST agree to be financially liable for a minor to obtain a license.
Also, many insurance companies rate (and charge for) all licensed drivers in a residence and will not exclude a licensed minor. The provisions differ greatly between different insurers (especially sub-standard insurers).

[cookiedough]

A few times a month I wake up in a cold sweat screaming in abject terror at the thought of June 17th, 2027...

On that day I'll have two 16 year old boys and one 16 year old girl to add to my insurance...

2027 might seem like a long way off, but those far out dates have a way of sneaking up on ya' I've learned!

good luck with 3 of them all at once SERK - YIKES!  I thought 2 were bad, cannot imagine 3 at once.  Gee,  might have to sell the Valkyrie even??         Been thinking about it, well maybe????

[Jess from VA]

Put the old car in their name(s) alone, and insure it for them alone.  My dad kicked me off his when I got tickets, so I got my own and paid my own.  Even if you pay it for them, put it all in their names.  Then never drive it, and never let them drive yours.  If you have to go to a separate company, and have one of them make the call to purchase the insurance, do it that way.

This way, if they kill or maim a bunch of people, it's on them, not you and everything you own.  And no negligent entrustment case against you.  I don't care how careful they are, it's still a good plan.

YMMV.    

Must vary from state to state. In Indiana, the parent MUST agree to be financially liable for a minor to obtain a license.
Also, many insurance companies rate (and charge for) all licensed drivers in a residence and will not exclude a licensed minor. The provisions differ greatly between different insurers (especially sub-standard insurers).

Well, A) I never had kids (thank the good Lord), and B) my experience of being one and having cars and insurance in my own name is 40+ years old.  So what do I know?

My former wife of 20+ years was accident prone, and had a half dozen fender benders (alone and involving others, no one ever hurt).  When my rates went up on a joint policy (I always paid the premiums on), I kicked her off MY insurance.  Her quotes were an eye opener for her (she had a good job and got to pay her own way after that).  Some may think that harsh; I thought it was fair.

Her last one was hitting a mail truck (in use), in broad daylight.  She had problems with points too.  Since she pays her own and got close to losing her license, she has not had any more accidents.  You live and drive, and learn.

[cookiedough]

Put the old car in their name(s) alone, and insure it for them alone.  My dad kicked me off his when I got tickets, so I got my own and paid my own.  Even if you pay it for them, put it all in their names.  Then never drive it, and never let them drive yours.  If you have to go to a separate company, and have one of them make the call to purchase the insurance, do it that way.

This way, if they kill or maim a bunch of people, it's on them, not you and everything you own.  And no negligent entrustment case against you.  I don't care how careful they are, it's still a good plan.

YMMV.    

Must vary from state to state. In Indiana, the parent MUST agree to be financially liable for a minor to obtain a license.
Also, many insurance companies rate (and charge for) all licensed drivers in a residence and will not exclude a licensed minor. The provisions differ greatly between different insurers (especially sub-standard insurers).

Well, A) I never had kids (thank the good Lord), and B) my experience of being one and having cars and insurance in my own name is 40+ years old.  So what do I know?

My former wife of 20+ years was accident prone, and had a half dozen fender benders (alone and involving others, no one ever hurt).  When my rates went up on a joint policy (I always paid the premiums on), I kicked her off MY insurance.  Her quotes were an eye opener for her (she had a good job and got to pay her own way after that).  Some may think that harsh; I thought it was fair.

Her last one was hitting a mail truck (in use), in broad daylight.  She had problems with points too.  Since she pays her own and got close to losing her license, she has not had any more accidents.  You live and drive, and learn.

Hey Jess,

that is exactly why we call them EXES....   

[Jess from VA]

Cookie, I was not happy with her driving, but that had nothing to do with separation.  That was the menopause which turned her into a (perpetually angry and hateful) stranger to me.

[cookiedough]

Cookie, I was not happy with her driving, but that had nothing to do with separation.  That was the menopause which turned her into a (perpetually angry and hateful) stranger to me.

bummer,  my wife has not reached menopause yet but am sure soon will.   

got a few new quotes coming in and so far Progressive seems to be cheaper than Geico I have now, but not much difference really, just a tad bit is all.  Spent 3 hours on phone today with 5-6 different agencies so will see what pans out in next week or so. 

I think all insurance companies should REWARD customers for longevity with them by offering year after year savings for being loyal with no claims filed vs. jacking up the rates year after year sometimes for nothing logical. 

[hubcapsc]

I find when we 16-18 years old,  were driving some 30+ years ago,  we were much better overall drivers than kids today.  Or not???

Not, I think... if they were worse than us, we'd all be dead.

-Mike

[baldo]

I think all insurance companies should REWARD customers for longevity with them by offering year after year savings for being loyal with no claims filed vs. jacking up the rates year after year sometimes for nothing logical.  

I have Commerce Insurance, and they've always been good with us. We had two young ones come up some years ago, but they waited til the age of 18. It was a decision they made themselves, our son just didn't want to drive   and our daughter didn't want to spend the $$ for drivers ed.

My son did take drivers ed, but still waited til 18...on his very first 'drive', he and my wife were 2 minutes from the house when a deer jumped out of the woods and slid across the hood and took off. I've never seen deer here on the Cape in the 30 years I've lived here, never heard of any. (Martha's Vineyard is loaded with them)

When they did start driving, they got their own policies right off the bat, premiums were in the $2200-2500 range if I remember correctly.

Talking about rewards, I just had a fender bender myself. I got bumped by some kids, in stop and go traffic in a heavy rain storm. I ended up hitting the guy in front, taking out my hood and grill, still driveable. The kids that hit me took off, I got their plate.

The SP that showed didn't include the 3rd car in his report because there was no damage to my car, just scuffs. To make a long story short, I'm being surcharged, not sure how much. I've already filed an appeal. I was told that I lost my good driver rating which translated to about $300 less coming to me in my settlement. I didn't know that they had that, apparently it will accrue to $500 with no accidents...

Insurance companies SUCK, plain and simple. (except mine)  

[MP]

Cookie, I was not happy with her driving, but that had nothing to do with separation.  That was the menopause which turned her into a (perpetually angry and hateful) stranger to me.

bummer,  my wife has not reached menopause yet but am sure soon will.   

got a few new quotes coming in and so far Progressive seems to be cheaper than Geico I have now, but not much difference really, just a tad bit is all.  Spent 3 hours on phone today with 5-6 different agencies so will see what pans out in next week or so. 

I think all insurance companies should REWARD customers for longevity with them by offering year after year savings for being loyal with no claims filed vs. jacking up the rates year after year sometimes for nothing logical. 

Most of the rules are set by each states insurance commission. They have set what. Is required. That is why all the quotes are about the same cookie.

[cookiedough]

Cookie, I was not happy with her driving, but that had nothing to do with separation.  That was the menopause which turned her into a (perpetually angry and hateful) stranger to me.

bummer,  my wife has not reached menopause yet but am sure soon will.   

got a few new quotes coming in and so far Progressive seems to be cheaper than Geico I have now, but not much difference really, just a tad bit is all.  Spent 3 hours on phone today with 5-6 different agencies so will see what pans out in next week or so. 

I think all insurance companies should REWARD customers for longevity with them by offering year after year savings for being loyal with no claims filed vs. jacking up the rates year after year sometimes for nothing logical. 

Most of the rules are set by each states insurance commission. They have set what. Is required. That is why all the quotes are about the same cookie.

MP,  quotes not about the same always.  Just got a reply back from Erie Insurance and WOW,  they want over 2000 bucks every 6 months on the vehicle under my 16 year old vs. most 400 bucks per vehicle or so.  PLus, the other 2 vehicles make it 3500 every 6 months - INSANE I just laughed them off.  Most others so far are 1100 on up for 3 vehicles wanting it to be lower than 1K for sure every 6 months on 3 vehicles.  So far Progressive is the way to go barely under 1K so going to switch next week if finding nothing else. 

Has anyone done Progressive snapshot where they hookup for 3-6 months an onboard plug in to monitor our driving to apparently save another 10-20% depending on readouts of hard braking/acceleration, no 12-4 a.m. driving, and no excessive speeds not sure but guessing 80 mph on up?

I know Liberty Mutual has drivewise and Allstate has their plug in monitoring device as well, just your thoughts if good/bad.  I know I would have to drive like an old lady (pun on words-no offense to old ladies in general),  but if it saves me 15% off each vehicle is worth it making insurance reasonably priced.  1K at 15% is another 150 bucks in my pocket every 6 months.  I do not like to have someone monitoring my speed and braking, but might just have to drive 'normal' for a change, at least for 6 months anyways?