insurance for 16 year old advice
 

My son is turning 16 soon and was wondering how people who have had young drivers, handled the insurance. Did you put your child under your insurance or have seperate policy for them.
We have a truck for him already I kept my 1998 f150 2wd when I bought a new truck just for him to drive and he is taking drivers training course. Thanks

It'll be much cheaper if you can have him as an occasional driver on your policy rather than his own. But that may not be an option depending on how many vehicles and drivers in the household. I stayed an occasional driver as long as I could because my insurance went from $40 to $250 a month once I was on my own.

I was fully responsible for my own insurance back when I was that age, same with having to buy the vehicle I drove on my own. Having them handle it all themselves is part of treating them like a young adult.

X2.....
The occasional driver and the defensive driving course is a must. In addition we were through State Farm at the time and they allowed a further discount if my son carried a 80% in school and we had to produce his report card.

It all helps in saving the costs.

It will be expensive if he gets his own insurance and if you put him under your policy and he has an accident your insurance will go through the roof.A nasty double edge sword to say the least.

If you do put him on your insurance make it a rule that when he gets behind the wheel he turns his smartphone OFF.Last thing you want is a distracted teen texting/tweeting whilst driving.

FTH

We are closing up on my sons 16th. Birthday this fall.
He has his ride already, and is paying his own way towards repairs to it so it will pass the insurance inspection.

We've also decided he will foot his own bill on insurance, as I've heard horror stories as to young drivers not having any tangible driving or insurance history when they go looking for their own insurance after mom and dad covered them under occasional drivers for years.

Sure that means working lots through the summer, as well as carrying a job through the school year, but hey, you can't have your cake and eat it too.

I have done this twice. This is just my opinion. Have them self insured. Yes, it is quite expensive.
Pros - In case of accident, your insurance doesn't go up.
- With every year of clean driving, their insurance premium goes down 5%. This doesn't start happening until they are on their own insurance. So if they start on their own at age 22, their insurance premium is the same as a 16 year old.
Cons.- expense.

Young people should drive a vehicle that doesn't need collision insurance.

What is occasional? Seems to me that some advise is to cheat the insurance company. His own vehicle, I doubt very much that would be occasional. Suppose he was in an accident, insurance did a little investigation, which they do now more and more to cover their own butts, and found out he wasn't an occasional driver, guess who is not paying the bill?

X2 done this 4 times. Talk with your insurance company.

Occasional is defined by the insurance company. It's not cheating. Just read their description, each company might have different rules. Driving to the store or a friends house type thing, even if it's every day should be fine. I think most policies would consider you an occasional driver as long as you're not the primary driver of the vehicle.

It was in reference to the OP's post. To me it sounds like it will be his own vehicle=primary driver

Thanks all for the advice I think it is best for him to have his own policy but its always good to here from those that have done this before because I know I dont think of everything.

It is in the parents best interest to have teenager insured under his/her own policy. The only downside is the extra cost of the premium.

The downsides to having your teenager insured under the parents policy.......at the very least, if your son or daughter gets into an accident, your premiums go up, which in the grand scheme of things is minor. The kicker is that god forbid that accident injures someone else, you as the parents have opened yourselves up to a lawsuit because your teen was insured under your own policy. For this reason alone, I would never put my young inexperienced teen on my own policy.

Read my edit. It applies. I'll even apply more logic now.

Young adults typically don't make much money, lots goes towards vehicle expenses. Its an effective real world economics lesson for them, plus less money and parental coddling produces more mature people. Junior under Daddy's wing will have more money for partying and likely get in more trouble, all other things being equal. That's not painting your kid with any brush one way or another, but an observation of conditions that create immature adults. The greater self reliance builds a stronger character, can we agree on that much?

Meh.......maybe you should just roll the dice and put the young'in on your own policy.

DO NOT PUT HIM ON YOUR POLICY
Give him a ****box and make him insure it in his own with only PLPD

Because when he gets off your policy as an occasional driver and becomes a full time driver your insurance will look at him as a new driver again!

Seriously! If you want to help him give him your POS f150 for free and make him may fire/theft/vandalism on it

My suggestion is to get him his own.This will make things easier for him later on. Also, if he considers post secondary, he can always set his main city to the location of the school, reducing costs if he is moving away from a major city (Edmonton/Calgary). This is speaking from previous experience. But considering that the difference in cost to insure my first vehicle (1990 f150 single cab) was exactly $1 more than going under my parents, it made sense to go on my own. Every 2 years he should see a significant decrease in insurance costs, if he were to go on his own.

Just my 2 cents.

When my daughter turned 16 we gave her the vehicle but she was responsible for insurance, gas and repairs. My son will be 16 in a year. He will be getting a very nice 98 dodge half ton that is worth about $1500. He will be paying his own insurance, gas and repairs.

Im a young driver (17) I did drivers training so that cut down the monthly payment a great deal. I went with TD insurance with my own policy. I pay 139.00$. Which I do not believe is a whole lot for a new young driver. May of my friends pay 200+.

If you put them on your own policy they use the most expensive vehicle you own to base the insurance on. It was actually cheaper for us to insure my daughter on her own.

For my teenage girls
 

HI; I would suggest having your son on his own policy. Put him on a policy for PL & PD only...no collision. The key to this approach is the kids must drive "beaters". The cars value must be less than 5 K. If you want to help him with insurance...you can help. (or your son can get a part time job).

If there is an accident and is at fault your insurance pays them...your beater will be a write off...but its worth it. The insurance for the girls to have "collision" would be about 4500 per year...the cost of replacing the "beater"

My two bits

Hoopi

I have had three boys go through this and how we handled it was to have the truck registered in your sons name and place the appropriate amount of insurance on it. We have always only asked for third party insurance as for young men the price is so high. All boys insurance cost anywhere between 1300 and 1700 per year. With a 98, the cost will be more like 6 - 900 for the year. The cost is just too expensive if you put them on your insurance and if the worst happens it only affects his insurance and not yours or your wife's. We have also told all three of my boys that if they get into an accident they will have to turn in their license due to the high cost of insurance. This has resulted in three very capable drivers. I hope this helps.

I went through this 7 years ago with my Daughter but I don't know how much has changed since then.

Another vote for PL&PD with a higher deductible ($1000?) to keep the insurance cost down. Be prepared to pay for any minor fender benders out of pocket that is his fault and only claim through insurance if it's something major. IMO FWIW.

Get him in a drivers ed course and there will be immediate massive savings. Also get multiple quotes as AMA was twice as high as across the board as compared to Western Direct so we switched everything over.

We have gone through this twice now. Both kids have their own insurance for 2002 vehicles.

Just liability, no collision. Both pay approx $140/month to drive. It comes out of their pocket, as does repairs and gas.

Going through this very thing right now. Ex-wife bought our Daughter a car, told her to get a job to help pay for said car. She worked at Tim Horton's for a couple of months then quite. Mom wants me to help pay for Daughters insurance and fuel. I had to play the bad guy and refused to pay for her gas, and said i would pay for her first 3 months insurance, but after that its her responsibility to pay for any expenses after that. Driving a car is a big responsibility, that comes with all kinds of expenses, better they learn this now then when they move out and have to pay for rent,food and other bills, including their own insurance. They may be ****ed at me now, but in 5 years it will all make sense.
Kids these days act all grown up,but don't want grown up problems.

I know this one!
 

Get his own! I was told this by parents on his hockey team ,and I thought that I would save a few bucks, he was crossing the hwy coming home from school and a tourist in a rental car hit him and I was paying much more on my policy for many years.

As a side note. I would suggest the AMA advanced driver training course.
I took it years ago so I could get back three demerits.
It's an empowering Saturday afternoon.
I think it was 8 hours. But way more educational day than any week behind the wheel with an instructor.
The guy that have the course had all kinds of insight that has stuck with me for well over 15 years now.
I think we had to get 90% to get a pass and our 3 demerits back.

At least look into it.

I always had my boys on my plan. I felt it was cheaper in the long run as we got multiple vehicle discounts.

if possible I would go with occassional driver as long as he's not putting lots of miles on, you have to have more drivers in the house then vehicles to list him as occasional though, so if thats not the case then just put him on his own policy, usually cost the same if hes a principal driver on your policy or a principal on his own, but go through the same insurer just on a separate policy....being listed as occastional driver does count as years insured the same as if he were on his on policy so dont let that scare you...