What is the cheapest way to insure a teenager with car insurance?
Sunday, July 5th, 2009 at
9:01 am
 |
bustamove asked:
I have heard of people putting the car under their name on the policy and then they child drives the car and claims it is their parents car. Giving cheaper insurance. Is that very common?
Tagged with: Car Insurance • Cheaper Insurance • Insurance • Parents • People • Teenager Insurance
Filed under: Insurance & Registration
Like this post? Subscribe to my RSS feed and get loads more!
Sure, until they are not a listed driver on the account, and the insurance company refuses to pay after they are proven to be the driver during the crash.
Pay now, save later.
That will become a problem if the teen gets into a accident. Just check around for the cheaper insureance in your area.
I would have that kid buy their own insurance…
The Best option is to have the parents name on the car and list the teen as a driver of the car. If you put the insurance in a childs name, God help you when you see your first bill.
Also shop around. Places like state farm will give your child discounts for things such as a 3.0 gpa and if they have no moving violations. When I was younger it saved my parents hundreds of dollars.
Very common. The child is also usually listed as an occasional driver (meaning they don’t drive the vehicle full time or are not the main driver of said vehicle).
Basically the child is listed as an extra driver. This provides the child with some way to gain driving experience and not have the high insurance costs associated with being a new driver.
In certain jurisdictions though if you have 3 drivers in the household and 3 vehicles, then the child becomes a primary driver for one of them and the insc rates escalate on that vehicle (regardless of who is the registered owner, note that this applies to personal vehicles and commercial are not incl’d).
The beat way to do it is make sure the teen takes a drivers ed. class State Farm offers really good discounts for that. Some parents put the child and the car on their policy that is pretty common. But the downside is that when they move out on their own and have to get insurance by themselves they don’t have any established and so they have to pay more for the first year. And if they wreck (even a fender bender) then your insurance will sky rocket!!! Best thing is have them take the class it is offered in most high schools and put them on their own policy by themselves, so that first inevitable accident doesn’t end up costing you for the next 5 years.
in most states like in California there is a special insurance plan for drivers with bad records or no experience,
for example in California we have CAARP, the california auto assigned risk plan , which is a state program designed for these cases, this would be the cheapest way to insure a teenager, check with your local department of insurance!
JUST PUT THEM AS A DRIVER ON YOUR POLICY AND DON’T PUT THE VEHICLE IN THEIR NAME.