Car insurance for your underage kids

[eljefino]

Read your policy. Your policy. The one you have in your junk drawer.

Mine reads "you must declare all licensed drivers in your house".

Seems clear, right, except the penalty is

"we will not pay claims for un-declared drivers if their addition to the policy would result in a premium increase".

Aha, so you can have a licensed driver, but not let them drive.

How does this work into you splitting your fleet into two groups, with only one car for the teen? Awkward. Having the second policy would be admitting the license exists.

I would drop the collision on the F150.

The bummer is the insurance will assume a truck you just drive to home depot on the weekends will be in constant use, eg matching the number of vehicles to drivers, because of all the nitwits that ruined it for the rest of us.

IANAL.

 

[Garak]

Originally Posted by hallstevenson
Originally Posted by bmwpowere36m3
My parents bought me a car at 16, but made me get my own insurance policy.
How does someone under the age of 18 get a separate insurance policy, i.e. a contractual agreement between them and an insurance carrier ? Anyone under 18 normally can't enter into any sort of legal agreement.

I can't say for all jurisdictions, but I was in the same position. My dad gave me an old taxi. The plates and the package policy were my own baby. The package policy isn't required (well it was, by my dad). Here, part of the difference is that the plates and basic insurance in this province are only offered by the government Crown corporation. The package policy was also from them. So, given that it's a government run insurer, they hold all the cards.

 

[Hall]

Originally Posted by Wolf359
Originally Posted by hallstevenson
Originally Posted by bmwpowere36m3
My parents bought me a car at 16, but made me get my own insurance policy.
How does someone under the age of 18 get a separate insurance policy, i.e. a contractual agreement between them and an insurance carrier ? Anyone under 18 normally can't enter into any sort of legal agreement.


Technically it's not binding if the person is under 18. That means it's binding to the insurance company but not to the minor. In the case of the insurance company, I would think their exposure would be limited, they don't write the policy til they get the money so no need to sue to get their funds.

And since the "minor" ultimately can't be held responsible, they'll go after the parents....

 

[Garak]

Or if you're here, they'll hold it over your driving head for life.

 

[Wolf359]

Originally Posted by hallstevenson
Originally Posted by Wolf359
Originally Posted by hallstevenson
Originally Posted by bmwpowere36m3
My parents bought me a car at 16, but made me get my own insurance policy.
How does someone under the age of 18 get a separate insurance policy, i.e. a contractual agreement between them and an insurance carrier ? Anyone under 18 normally can't enter into any sort of legal agreement.


Technically it's not binding if the person is under 18. That means it's binding to the insurance company but not to the minor. In the case of the insurance company, I would think their exposure would be limited, they don't write the policy til they get the money so no need to sue to get their funds.

And since the "minor" ultimately can't be held responsible, they'll go after the parents....


Yeah, but that's only if the parents also sign. I think if a minor enters into a contract, it's really up to the entity that they're signing a contract with to make sure that they're not a minor and to understand the repercussions if they are. That's the whole point of a contract not being legally binding if signed by a minor. If the parents were automatically bound to it, it kinda defeats that point.

 

[Schmoe]

Originally Posted by Wolf359
Yeah, I'm not sure why you think she'd be covered on the car if she borrows it. In order to get coverage, everyone listed at the same address has to be on the policy. If she lives with you and is not on the policy, then she's not covered. She's only covered if she doesn't live with you. So if she borrows the car, she has no insurance if she lives with you and you don't put her on the policy. That's why you can let other people borrow the car without having them on your policy, but if they live with you, they need to be on the policy.

I knew that, but I was surprised my friend didn't. I mean, I want to tell her, but boy, hate to be the her party pooper. I have read cases whereas they'd come after the parents if insurance was not enough to cover the damages on a particular accident. I did register my house for homestead, which means someone can't sue me and take my house. But still, I have other assets. Love my daughter to death, but she can be dingy some times. I hoping the drivers course she just finished opened her eyes to being more responsible and more aware of the surroundings. You guys always have good advice and insights. I talked to my wife about some the points made up here about just not telling the insurance company and playing "stupid", she too thought the don't ask-don't tell the insurance company idea our friend came up with was not very smart.
What happens once she turns 18, probably live at home for a few years attending local college, and still driving my 06? Should I get her a separate policy? I just can't see paying all that premium for cars she won't drive, and cars I'll never let her drive like my new to me 17 Accord I just picked up last week.

 

[Wolf359]

Originally Posted by Schmoe
I talked to my wife about some the points made up here about just not telling the insurance company and playing "stupid", she too thought the don't ask-don't tell the insurance company idea our friend came up with was not very smart.
What happens once she turns 18, probably live at home for a few years attending local college, and still driving my 06? Should I get her a separate policy? I just can't see paying all that premium for cars she won't drive, and cars I'll never let her drive like my new to me 17 Accord I just picked up last week.


Sure you can play stupid to the insurance companies. They just do it right back and say she has no coverage, claim denied, you should have read the policy.

You don't need to get her a separate policy, you just add her to the policy on the 06 and leave her off on the other cars. The premium should be lower. And make sure she never drives the other cars as she would have no coverage. You can also check with the insurance company on the rates. Once you're paying sky high rates for one car, it might not be that much more to add her to the policies on the other cars.

 

[PandaBear]

Originally Posted by bmwpowere36m3
My parents bought me a car at 16, but made me get my own insurance policy.
How does someone under the age of 18 get a separate insurance policy, i.e. a contractual agreement between them and an insurance carrier ? Anyone under 18 normally can't enter into any sort of legal agreement.

My friend could, heck even those with international driver license could. You just have to pay MORE.

 

[RhondaHonda]

If she’s a resident of your household and licensed, she needs to be on the policy or specifically excluded. Add her and bite the bullet.

 

[Leo99]

I live in NJ. Every state is a little different. When my mom lived with me she had her own policy and my insurance company needed to verify all licensed drivers in the household were insured. You want to be sure your assets are properly protected.

My umbrella policy to jump from $500k to $1M costs me about $360 a year.

My wife does personal injury law stuff and knows what can happen when you get sued. No way do you want to risk being under insured. Write the check and sleep better at night.