by hummingbird » Thu Jan 03, 2008 02:33 am
I have heard that insurance companies automatically raise your rates when you have a teenage driver.But how do they know if you don't tell them? How much do they raise your rates anyone know?
Posted: Thu Jan 03, 2008 05:13 am Post Subject:
I have heard that insurance companies automatically raise your rates when you have a teenage driver.But how do they know if you don't tell them? How much do they raise your rates anyone know?
Wow...loaded question.
First off, the insurance company is entitled to the premium for the risks that they insure. You're likely aware that teenage drivers pose (in the automobile insurance and real world) the highest risks out there. So...accordingly- the insurers charge a whole lot for kids.
Now, don't be fooled by any language in your policy that states something to the effect that coverage applies to "any licensed driver who operates the vehicle with the insured owner's permission" or anything like that. It's true, but it refers to drivers NOT located within the insured household or to anyone with regular driving privileges of the car.
Don't play games with this one. If you don't add a kid to the policy after they get their driver's license (and with some carriers, even with a permit), and they get into a wreck or get ticketed--> you got problems as mommy and daddy. Doesn't normally matter whose fault the accident was, by the way.
Depending on any number of factors (and there's lots of them), you could easily be held liable for the damages caused by the "should have been insured but wasn't" kid driver. That alone could result in a huge financial knock-out blow. Think of the possible repurcussions.
Call your agent if you need to add a driver. He or she will explain your options, discounts and the good and bad. If you think the rate is too high (all rates are going to sound high at first, and probably later, too) then ask your agent to shop for you. If he or she can't due to a contractual issue- then shop yourself, and be honest when supplying information.
There are any number of people in these forums that can help you. Just give it a few days and they'll respond with more info. Good luck!
InsTeacher 8)
Posted: Thu Jan 03, 2008 07:41 am Post Subject: Why risking lives..!
But how do they know if you don't tell them?
Surely, it won't create a problem now if you are a smart player but it would certainly create a severe problem when you'd need to file a claim. It would then take into account a lot of other things - the identity of the person who got into the mess, the witnesses, the named insured & many more.
So ultimately, when the insurer comes to know of the fact then automatically you'd be denied of coverage! So why risking the lives of your near n dear ones just for the sake of saving a few bucks! neola_jones
Posted: Thu Jan 03, 2008 07:48 am Post Subject: a no. of things...I believe
My friend,
I'm sure that raising the rates would depend on a number of things. It would take into account certain important considerations regarding the age, the distance the car needs to trudge, your own track record (as far as accidents are concerned), your financial condition, your present earnings, the number of dependents etc.
So I believe, it would vary from one party to another!
MamJennifer09
Posted: Thu Jan 03, 2008 12:22 pm Post Subject:
I'm not gonna lie it sucks bad (financially and emotionally) when you have a teen driver...In my house if the kids wanted to drive they had to pay for their own coverage...Mom and Dad footed the first three or six months as a birthday gift after that they were on their own (I paid it so I could sleep nights knowing it was paid then they paid me back every month, and yes they were behind a week or so some times, but when one got a month behind they were not allowed to drive again until it was paid in full i kept it in force but still didn't allow him to drive...never happened again!).......I think parents (personel point of opinion) that pay the bills teach their children nothing about real life...
The sword is terribly sharp when you attempt to skirt around (lying actually) to an insurance company...Not only do you run the risk of them not covering a claim...when they find out (and they will) they will require that back premium as well (in order to pay the claim in most cases IF you're lucky and they don't deny the claim)...and if they deny the claim who is responsible? yep, mom and dad!
I think it is always best (if possible) to get a kid a beater and put liablity on it (with them paying of course) this is the most economical way to insure a teen driver, they can then drive your vehicles as well...they just have to be rated on one of them...and if you only have two nice vehicles with ''full'' coverage to chose from then the rates are going to be higher than they need be........also don't fall into the trap of getting the state required limits only...most states don't even come close to providing enough coverage in their min...and guess what? Jr. has the state mandated limit of 5k PD coverage, and wacks a vehicle causing 20k in damage guess who is going to be responsible for that additional 15k?
Posted: Thu Jan 03, 2008 05:00 pm Post Subject:
Where we live they started a new program .Don't know if it the same in any other states. The 16 yr old can get a permit,then wait 6 months to try for their license. It is only a pemporary one that they have to apply for a permanent one in 6 more months.They also have to take a driving course and friving school. But I have not seen any real rate decrease for these things as far as insurance goes. I am glad though for the life of a teen that it is harder to acquire a license now though.I do beleive there is a remedy for the high rate of insurance for teens but don't know what it is. My daughter has to wait till she has a job and saves money to buy a car then saves enough to buy insurance.She will be 17 in March and so far no job.SHe well may be 21 by the time she reaches those goals.All I know is that we(mom and dad) cannot afford the insurance for a teenage driver.Average incomes do not allow for our insurance and theirs too.
Posted: Fri Jan 04, 2008 01:17 pm Post Subject:
I am glad though for the life of a teen that it is harder to acquire a license now though
This is great! wish all states would follow...as I said, my kids were REQUIRED (by dad and I) to pay for their own insurance....there are no 'free lunches' in life....if they wanted to drive they had to pay......I know parents that foot the bill for everything for their kids including buying them brand new cars when they turn 16! I just can't believe that! even if we could afford that I wouldn't do it on a bet!Posted: Sat Jan 05, 2008 12:24 am Post Subject:
No, I agree. My daughter will have to at least help pay for a used car. Our son did so much damage to his ,I was glad he had no new car. She wants a nice car but I hesitate to buy one it could be beat up like his before its done.She will have to get a job and pay her own insurance.
Posted: Sun Jan 06, 2008 05:47 am Post Subject:
Just remember this one thing; If you don't answer the company truthfully, they might just throw your claim right out the window. Don't play games with an insurance company, ever.
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