advice on auto insurance/adding 16 yr old (homeowners insurance, credit score)

[laxdad]

I am about to add my 16 year old to my auto insurance policy. I just got quoted almost $4000.00 per year. Its just my wife and I and my new 16 yr. old on this quoted policy. Does this sound right or am I just stuck in the 80s. Does anyone have any suggestions on insurance companies that's not so hard on young drivers. ANY HELP IS GREATLY APPRECIATED.

[ZGACK]

I don't have kids but the quote sounds inline with the risks a new and young driver presents in an urban area where accidents are so prevalent. You could look in to Safe Auto Insurance Company - Low Cost Automobile Insurance. They advertise a lot and are positioned as a low cost alternative. I'm not sure if they write policies for sixteen year old drivers but it's worth looking in to.

[Pcola110]

Yeah having teenagers can hike up your auto insurance premiums . I don't have any teenagers, myself yet, in a few years though. Really depends on your insurance carrier, what over incentives are they offering you (i.e. Good grades, son/daughter taking a driver's safety course or getting their license through drivers ed program thru their school). Those should be somethings you discuss with your insurance agent with your current insurance company. I've had Geico, USAA (military only) in the past and currently have Progressive. Other things factor into that premium quote i.e. style of car they will be driving, and so on. Good luck, call around and get some other quotes.

[rasmom]

At the time (2 years ago) when my son got his license at 16, we were insured with Progressive. We also got a quote of $4000. I had heard through his high school that Allstate was very kind to new drivers. I checked into it and we ultimately changed not only the car insurance, but our homeowners, as well. We carry full coverage, collision, even though he owns the car, and he pays $3000. a year. The child must be added to the parent's policy until they are 18. They can not be legally bound to anything until that point. Allstate has a deductible that is dropped by $100. per 6 months of no claims. Accident forgiveness, as well. we have been extremely pleased with how this has worked out. My son got a part-time job and banked 3 pay checks a month into his savings and when the premium was due, he had the money and it taught him responsibility as far as paying for his priveledge to drive and also, saving. By the way, we added an umbrella policy to our homeowners insurance, just to be safe. You never know what could happen. I hope this helps!

[rasmom]

Just wanted to add, you do get a discount for good grades, be sure he is not driving a sports car.You get a multi car discount and when you put your house in the mix as well, the cost is better. They are definitely worth getting a quote from. It is really hard on the kids because they are judged before they have even done anything.When you have the multi cars listed, in my case, my son is listed on driving our pick-up (cheapest rate), although he drives a 2003 Mitsubishi Galant. He is aauthorized to drive any of our vehicles.

[Mattie]

We just added a 16 yr old boy to our policy with Allstate, and our premiums went up about $900.00 per year. He received the discount for good students, as well as behind the wheel training with Nathan's Driving School. We now have three boys driving, and own 3 cars under our names, for a total of about $5500.00 a year. Our agent told us NOT to buy cars for the younger two boys (16 & 17), or we would take a big hit on premiums. Our oldest is 23, with a car, the other two drive either my car or my husbands. Knock wood, no accidents, and no tickets. I agree, an umbrella policy is a very good idea.

Rasmom, isn't it a more expensive "premium" policy with Allstate that gives you the accident forgiveness, etc?

[rasmom]

Yes, it is more expensive for the "Premium" policy. We thought it was well worth the expense. We carry full collision on all our cars even though we have the title. With the way people drive and the way they ram your car in a parking lot, even though I park far from the store, I have my doors rammed with a cart or worse. We have 4 vehicles insured. Our vehicles were not available for use when my son needed to get to his part-time job, therefore, he has his own car. He turns 18 the end of this month and will be getting his own policy with Allstate. Like I said earlier, all other insurance companies quoted a higher price for less coverage. The main thing we were concerned with was an accident, even if it's not their fault. There are so many driving without insurance, we wanted to cover our assets!

[Pcola110]

It's all in what coverages (P.I.P., COLLISION, DEDUCTIBLE) you ask for, previous driving records, lapses of insurance coverage (if any) and credit scores of adult drivers, that determine what they quote for premium. Also smaller cars carry higher insurance premiums, I seen this mention on Msn.com in the money section, teenagers tend to zip through traffic in smaller cars & those tend to be vehicles involved in auto accidents with teenage drivers. I've never carried the umbrella policy on any of my auto policies. I've always made sure I had high enough coverage for property damages, medical costs and protection against under insured or non insured drivers whether their at fault or myself to cover my assets!

[Mattie]

The umbrella policy is not part of our auto insurance, it is to protect all of our assets in the event of a lawsuit against us. If your assets are substantial, it is a very good idea to invest the relatively minimal amount on the additional coverage.

[rasmom]

Mattie...I couldn't have said it better! The umbrella covers your home. If a minor child driving on your insurance, gets in an accident and (God forbid) the accident resulted in a fatality or permanent injury, you wouldn't have a home when it went to court! When as parents, we add them to our policy, they are our liability, therefore, as I posted earlier, your assets need to be covered.