Advice on insurance for teens

Discussion in 'Community Discussion' started by Worf, Oct 2, 2010.

  1. Worf macrumors regular

    Joined:
    Jun 23, 2010
    #1
    It's a part of growing up - getting licenses, cars, etc.

    Would appreciate any member who would shed light on how much teenage insurance rates would cost and discounts that could be received for good grades. Also in the event of an accident - lets say major one- how would insurance rates alter?
     
  2. nobunaga209 macrumors 6502a

    nobunaga209

    Joined:
    Mar 13, 2009
    Location:
    TX
    #2
    Honestly insurance is one of those quirky things that's totally based on each persons unique scenario. Age, gender, location, type of car, engine size, etc.

    As a rule of thumb it's understood that teens will pay a premium for insurance due to 'high risk assessment'. Best bet is to get with one of the bigger agencies and request a quote. Most will provide a cross reference check with competitors to give you an idea of what you will be paying.
     
  3. iSaint macrumors 603

    iSaint

    Joined:
    May 26, 2004
    Location:
    South Mississippi y'all, near the water!
    #3
    If the teen has his own car and the insurance is in his name, it's very expensive. However, if the teen is added as a driver on the parents' policy it's $50 or so a month additional. Good grades, safe driving, driver's ed courses all help.
     
  4. steve2112 macrumors 68040

    steve2112

    Joined:
    Feb 20, 2009
    Location:
    East of Lyra, Northwest of Pegasus
    #4
    Yeah, this. If at all possible, get added as an additional driver on your parents policy. Stand alone insurance for a teen driver will be incredibly expensive. Good grades and driver's ed will usually knock 5-10% off the bill. The type of car plays a big part too. A 10 year old Accord, for example, will be much cheaper than a new(ish) Mustang. Teenagers+sports cars gets very expensive.
     
  5. Mr Kram macrumors 68000

    Mr Kram

    Joined:
    Oct 1, 2008
    #5
    what is teen in this case - 16, 19? you should consider that while your child is under your umbrella, you are probably liable for any damages not covered by the insurance company. if your kid is over 18, i would personally register the car in their name and have them carry their own insurance.
     
  6. iJohnHenry macrumors P6

    iJohnHenry

    Joined:
    Mar 22, 2008
    Location:
    On tenterhooks
    #6
    If you have 'one accident forgiveness', and he/she uses that up, then they are on their own.

    This would only apply if you already have trust in your child.

    Otherwise, I agree with Mr Kram.
     
  7. lewis82 macrumors 68000

    lewis82

    Joined:
    Aug 26, 2009
    Location:
    Totalitarian Republic of Northlandia
    #7
    I was the third driver of my parents' car, and it costs 1600$ per year. I have taken driving lessons. I don't drive anymore, way too expensive.

    The car is a Volvo XC70, with a 2.5L turbo engine, which may contribute to the high price. But even then, the car wasn't bought new, and is insured for about 25K.

    Even on my father's 1969 Volvo 1800S, it was over 60$ a month. For a ~8000$ car.:mad:
     
  8. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #8
    It's expensive. Of course it all depends on a million factors, but from my own experience, I can tell you that I own a faster, more powerful, more expensive, newer car now than I did in my teens, and my insurance is about a third of what it was when I started out driving, and I had an at-fault accident, speeding ticket (Well, 2, but I got a lawyer to reduce the second one to a parking ticket so my insurance company doesn't know about it ;)), and comprehensive claim (cracked windshield, don't know if that counts towards my rates) in the past 2 years. And I'm still only 24...and nothing else has changed - don't own a house, am not married, and I've actually lost the good student discount since graduating college. So you can only imagine how expensive it is for teens because of their age. And if you're (or your teen) a guy, we get screwed even more.
     
  9. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #9

    Wait until you turn 25 and the rate drop is insane.

    I was 24 with no wrecks, and no tickets and I was paying something like 120-130 a month. I had all my parents discounts as I was on their coverage and I was paying them. At 25 with an AT FAULT accident my rate is still fair amount less than when I was 24. I did have to eat a rate increase but I was still under what it was when I was 24 with no wrecks. Oh and this is also on top of that fact rates I was under at 24 were a cheaper area than when I was 25. So that should give you how big of a discount you get at 25. 25 was multiple factors increasing the rate.

    With State Farm rates decrease at 18 years, 21 and then 25 years of age. If you are in college they also will give you discounts if you beyond a certain distance from home or they will change your rates to match the location of the school. It will be what ever is cheaper.
     
  10. SkyBell macrumors 604

    SkyBell

    Joined:
    Sep 7, 2006
    Location:
    Texas, unfortunately.
    #10
    F$#@ing expensive. I'm 17, drive an '03 Ford Escape (Supposedly a "safe" vehicle, though I don't know who defines that) and my insurance is close to $300 a month or thereabouts on my parents policy. I am a high mileage driver, but no speeding tickets or accidents.
     
  11. OutThere macrumors 603

    OutThere

    Joined:
    Dec 19, 2002
    Location:
    NYC
    #11
    Definitely get on your parents policy, you can realize like 75%+ savings over an individual policy.

    Accidents and having the car parked away from home (college) can seriously drive up the rates.
     
  12. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #12
    man has it gone up in the past 10 years. For me when I was that age it was around 180 full coverage on a car of comparable value. Liability only was 120 a month. Now my sister is at 240 a month on more than like a cheaper car but she also has past the first drop point and in a few months her rates will drop again.


    Parent policy yes because the parents policy often times has a lot more discounts to go with. My parents for example you have multicar discount, homeowners insurance discount, long time customer discount, homeowner discount and I am pretty sure a few others if I was on my own.
    Reason my car never went on its own is my car has never been and never will be in my name. Insurance companies do not like insure a car not in your name. Now when I sell my car in a few years the next one will be in my name but no point to transfer my current one over because I am not going to pay the sales tax on it. Stupid Texas state law that cars can not be gifted......

    As for the college one that normal drops the rate if you are more than 150 miles from home or something. That or they will change the rate code to that location. It will be what ever saves you more money. For example my rate code was changed from Galveston to Lubbock because Lubbock was cheaper than the discount for being 600 miles from home.
     
  13. wvuwhat macrumors 65816

    wvuwhat

    Joined:
    Sep 26, 2007
    #13
    When I was 17, I bought a new (at the time, 2003) Honda Civic. My parents paid for the car with my money and they bought it in their names so they could put it as their car. At the time, my step-mom had her own policy for her car, and my dad had her and him as primaries on his truck, and the car that I bought (they bought). The way it worked out, I paid 75 a month (after a 10% good student discount), and was essentially the 3rd driver of the truck and my car, my step-mom's car was to only be driven by her on her own policy.

    In the end, according to our insurance agent (a family friend) we were saving about 80 dollars on my insurance rates by doing it this way.

    I'm not going to lie, I did the same thing when I graduated college in 09', gave my parents the money and my car to trade in on a new at the time 08' Accord Coupe, my rates are ridiculously low after not being in any at fault accidents and taking a driver improvement class to get rid of the 1 speeding ticket I had during college.

    At the time, I'm at 350 every six months, with a newer and faster car, and I turn 24 this week, which to my understanding is the big dropoff in high risk, because of the age of the policy holder. Hoping it drops off significantly.

    I'm almost not looking to start a job, because I know my insurance rates are going to go up just because I'll be my own policy holder.
     
  14. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #14
    My insurance is actually cheaper on my own than it was with my parents, but I did shop around and switch companies, they were with AAA (which is where I was when on their policy) and when I went out on my own, I went with Progressive who was considerably cheaper for the same coverage. So don't just go with the same company as your parents, make sure you shop around first.
     
  15. lewis82 macrumors 68000

    lewis82

    Joined:
    Aug 26, 2009
    Location:
    Totalitarian Republic of Northlandia
    #15
    Can I be insured by another company than my parents, on the same car?

    I'm 100% sure I could save money.
     
  16. Tomorrow macrumors 604

    Tomorrow

    Joined:
    Mar 2, 2008
    Location:
    Always a day away
    #16
    Generally, yes - but keep in mind that there are often discounts to be had if everyone is on one policy.

    I think the restriction is that all the licensed drivers in the house have to be insured; they don't have to all be on the same policy.
     
  17. notjustjay macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #17
    (referenced a post that has since been deleted)

    Mods, can you delete me please?
     

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