by ATV1231 » Thu Feb 26, 2009 10:38 pm
Hello
I am a seventeen year old newly licensed driver (class D- Queens, New York because i took a special class that allows me to get a full license at 17 rather than 18 and also gives an insurance discount of 10-15%). Right now I am driving my grandfather's car, of which he is the primary insured driver, and my mother is also insured on his policy.
A friend of mine told me that because i live at a different address from the insured driver, that I will also be covered (if my grandfather gave me permission to use the vehicle). I am skeptical of my friend's belief, and would like to know if this is the case.
In addition, if I am not covered by the insurance, which I believe I am not, what would be the cheapest way of insuring me? Would it be cheaper to buy a new car and have it insured under a parent's name, and then me being listed as a driver or to be insured under my grandfather's policy.
Thank You Very Much
I am a seventeen year old newly licensed driver (class D- Queens, New York because i took a special class that allows me to get a full license at 17 rather than 18 and also gives an insurance discount of 10-15%). Right now I am driving my grandfather's car, of which he is the primary insured driver, and my mother is also insured on his policy.
A friend of mine told me that because i live at a different address from the insured driver, that I will also be covered (if my grandfather gave me permission to use the vehicle). I am skeptical of my friend's belief, and would like to know if this is the case.
In addition, if I am not covered by the insurance, which I believe I am not, what would be the cheapest way of insuring me? Would it be cheaper to buy a new car and have it insured under a parent's name, and then me being listed as a driver or to be insured under my grandfather's policy.
Thank You Very Much
Posted: Thu Feb 26, 2009 11:53 pm Post Subject:
Difficult call. Your grandfathers application requires him to tell his insurance who will be operating the vehicle. This would include you for sure. However, this question is _usually_ only asked when the policy renews but it might also be contained in the policy itself. So you _might_ be covered up until your grandfather is asked who has access to the vehicle. Just to be clear... yes, insurance companies ask who lives in the same household as the person who has the policy but this is not the only determining factor on who needs to be listed on the policy. Anyone who drives the vehicle on a regular bases needs to be listed. If you are not, there is always the _possibility_ that you would not be considered an insured under the policy. However, what state the accident happens in also plays a factor. Even if you are not considered an insured under the policy, your grandfathers policy may address the loss on _his_ behalf as the owner (if the owner can be held liable for the use of the vehicle in the state where the accident happens). The only way you can know for sure of your covered is to notify the insurance company and be added to a policy. Anything short of that and your trying to obtain coverage for free and this is always a crap shoot.
Probably the least expensive insurance is for you to be listed on your grandfathers policy.
Posted: Fri Feb 27, 2009 09:07 am Post Subject:
Well, I think your friend is partially right. The insurer would extend coverage to anyone driving the vehicle with the owner's permission. But since you would be operating the car on a regular basis, it'd be right to ask grandpa to add you on his policy.
Secondly, at your age its quite difficult to get cheap coverage. Even though you have achieved excellence in driving the insurer would rate you higher than a senior and experienced driver. However, keep maintaining good driving record and continue enjoying discounts.
Thanks,
Rupert
Posted: Fri Feb 27, 2009 08:53 pm Post Subject:
Thanks Tcope and Rupert for your responses.
I am a around 6 months away from attending college, in which I probably will not be needing a car (in most colleges freshman cannot park on campus anyway).
Is it wise to just let these 6 months slide by and if ever in an accident, pretend that I am a just a very occasional driver so this way I do not to pay insurance?
Posted: Fri Feb 27, 2009 10:30 pm Post Subject:
ATV,
I understand your concern about saving on the cost of insurance. Do you have a "B" average or better? Have you completed a driver training course? Many insurance companies give teenagers discounts for these.
However, you need to be very careful about not telling the company that you drive the car. As Tcope and Rupert said, your grandfather's company will expect him to list you if you drive the car on a regular basis, even if you do not live with him. ("Regular basis" is a loose term, but many people interpret it as more than once per month.) If you drive it regularly, and you are not listed on the policy, it could affect whether or not the company pays a claim, or the amount of the payment. After all, pretending that you are just a very occasional driver is the same as asking other people to pay more than their share of premium so that you will not have to pay your fair share.
Also, keep in mind that both you and your grandfather must answer the claims adjuster's questions truthfully. If the adjuster asks if you drive the car on a regular basis, and you say that you hardly ever drive it, this is a fraudulent statement, and it could result in the denial of the claim or possibly in criminal charges.
I hope this helps, and I hope that you decide to do the right thing so that you will not have trouble with a claim later. Either way, best of luck in college ... if you study hard, the entire world will be open to you.
Posted: Sat Feb 28, 2009 01:49 am Post Subject:
Thank you for your well thought out response Christy,
Yes I have a 99+ average in school, took a class (-10 to 15%) which lowers the cost of insurance, but a major problem is that my grandfather is under Geico, which is very selective about their clients. My mother used to have Geico, she had one accident and they dropped her from her policy.
My grandfather called Geico up recently, and they said that an estimate for me to be on his policy would be $7,000 for 6 months (granted that's without some possible discounts). However, that is still outrageously expensive. Not to mention that I have a twin brother who also intends to use the car (although we might get away by switching licenses for whoever is insured and is driving at the time).
Unfortunately, right now I do not see many alternative options than to risk the occasional driver claim...
Posted: Sat Feb 28, 2009 09:24 am Post Subject:
(although we might get away by switching licenses for whoever is insured and is driving at the time)
That I don't think you should do. If get caught you may lose both the coverage and the license.
You may shop around for a lower rate. However, it'd be difficult to get a decent rate being a young driver. You may also check with the option of obtaining non-owners insurance which would keep you covered while driving grandpa's car. And, IMO it'd be cheaper too.
Best wishes!!
Leonard
Posted: Sat Feb 28, 2009 02:30 pm Post Subject:
Leonard is correct. Whatever you do, DO NOT lie in the application or in the claim process. That is insurance fraud, and you can go to jail for it.
The non-owners insurance is a good suggestion. Be careful to get the right one. Most basic non-owners policies are designed for people who do not own a car and do not have regular access to one. They usually cover liability (coverage for other people) only, and do not cover damage to the car itself.
However, some companies offer an extended non-owners policy that covers you while driving a car that you drive on a regular basis, and would also cover the car itself. Be sure the agent goes through the coverages with you so that you have the right one.
Posted: Sat Feb 28, 2009 07:15 pm Post Subject:
If I got non owners insurance, would it have to be with Geico or can my grandfather keep his Geico insurance, and I can get non-owners insurance with another company?
Posted: Sat Feb 28, 2009 07:49 pm Post Subject:
You can usually go to any company for it, since you will be getting the policy independently of your grandfather. However, be sure to talk to a GOOD agent about the options in New York. I am not familiar with the laws and coverages available in New York, and you want to be sure that you are NOT getting a basic non-owners policy that covers you only if you DO NOT regularly operate that vehicle. That policy will be worthless for you in this case.
Posted: Sun Mar 01, 2009 03:48 am Post Subject:
Thank you very much for your suggestions, I will definitely look into Non owners insurance.
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