Can you have more than one insurance carrier?

Posted: Wed Aug 19, 2009 10:29 am Post Subject:

Would there be any problem with this?

I have three vehicles, I would like to put two with one carrier and the third one with a different carrier.

Posted: Thu Aug 20, 2009 10:02 am Post Subject:

I think you'd receive multi-car coverage discount if you cover them with the same carrier. What do you think of that!

Posted: Thu Aug 20, 2009 08:37 pm Post Subject:

Didn't realize I wasn't logged on when I posted.... but I am the original poster.

The reason is my daughter is turning 16 and getting her license. We have three vehicles. Our current carrier is saying she will have to be put on one vehicle as primary driver. If I only had two vehicles with them, then she would be a secondary driver, at a fraction of the cost (premium). Then I would be the only driver listed on the third vehicle on a seperate policy with a different carrier.

Am I manipulating the system, or am I just being a smart shopper?

The Camper

Posted: Thu Aug 20, 2009 10:37 pm Post Subject:

It would definately be an idea I would look into. I can not see why you would be wrong for doing it this way but I also am not an expert when it comes to insurance rules. I know how expensive it can be to add a teenager. A long time ago there was a post on this site about insuring teenagers and it was showing how it doesn't have to be real expensive. Does anyone remember the post or how to og back to it?

Posted: Fri Aug 21, 2009 03:39 am Post Subject:

I get the idea, but unfortunately it's most likely not going to work. :cry:

When you apply for the coverage with the second carrier, they're going to ask you about all of the licensed drivers in the household, which will obviously include your newly licensed daughter. This second company is now going to rate the single vehicle based on the "highest-rated" driver in the house, which, of course, is your daughter. So, that's the idea. Now, the company that has the two cars insured will rate her as an occasional driver, and the idea is to save money with this. There isn't much chance this will actually save you money due to a number of things. The loss of a multi-car discount and the difficulty in finding a preferred risk company that will accept her by herself is a significant difference. Multi-car typically saves you 10-15%.

Another parent once again nailed with the dreaded "teenage driver in the house and everyone has a car" syndrome. I'm sorry to tell you this, as I feel your pain. I have THREE teenage drivers. How stupid were me and the wife? I knew this before I had kids!

Are there ways around it? Some carriers will let you exclude a driver from coverage for certain reasons. That may help. Normally, preferred-risk companies won't, unless there's a good reason and you have a history with them. You're obviously looking to minimize premium, and there's a few ways to do that by staying with the same company for all three cars.

Look for a company that rates driver's based on which car they actually drive, and make sure your kid has a car that only needs liability insurance and not full coverage. Stay away from carriers that rate "highest rated to highest rated." This means that that "worst" driver in the house gets rated on the most expensive car, regardless of whether they actually get to drive that car. As soon as my first kid got her license, I switched carriers due to this. After all three got their licenses, it saved me hundreds of dollars a year. My wife and I drive nice, newer cars. The kids have safe, reliable POSs (piece of ****) cars that only need liability since we have the titles. Make sure she keeps up her grades, and commonly driver's ed helps. Good student and driver's ed are typically discounts.

Speaking of titles, I'm assuming that you hold the title to the car your daughter will be driving. This means that you are liable for her actions, regardless of whether she's on her own policy or not. Commonly, anyone with ownership in a vehicle assumes a liability exposure, regardless.

Talk to your agent and find out how they rate, and if they won't let you pay based on the car she actually drives (liability only car), then find another carrier.

My kids have done well. No wrecks, no tickets. Well, to be honest, my oldest daughter rear-ended a 3/4 ton 4x4 with a humongous rear bumper. Her foot slipped off the brake at a stoplight because the goober kid was wearing her stupid "not really made for the rain" boots. The 4x4 didn't even have a scratch, the lady barely even felt it (her words) and she was much more concerned because my tough little daughter was sobbing and scared of what her mom was going to do. Mom's 4-month old Jetta now has a nice little dent in the bumper and a beautiful scrape up the hood. This is NOT a good thing, and she was freakin'. All was fine, car got fixed, and we made the kid pay the $400 it cost (I get by with a little help from my friends). No insurance claim on THAT one!

InsTeacher 8)

Posted: Fri Aug 21, 2009 08:06 am Post Subject:

Ins Teacher,

Thanks so much for your word of wisdom!! I've got a couple months before my daughter gets her license, so it looks like I need to start asking questions and shopping!!

The Camper

Posted: Fri Aug 21, 2009 10:29 am Post Subject: insurance

My son is 16 now. I REALLY don't want him to get his license until he's out of school (at age 18). Why?......right now there's just TOO much going on with him (alot of things coming up in school), and I feel like it would be something else 'on his plate'. Anyway....I know when I put him on my policy, he would be a 'high risk'. A friend of mine told me if I put him on my policy NOW, it wouldn't be 'high risk'. But,...ow can I do that if he doesn't have a DL yet? Or...does having the DL really matter? Can someone 'enlightenen' me? I don't know if the Insurance 'guidelines' are different for Minors or not.