Last post on Mar 15, 2013 at 12:49 PM
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#597 of 599 Re: that's what I'm saying... [fezo]
Nov 07, 2012 (11:07 pm)
A fairly recent trend in the insurance industry is REQUIRING a teen driver to be listed as primary driver on a vehicle, regardless of whether they actually are primary! For example, a married couple has a 2010 Infiniti G37 and 2012 Honda Pilot. Their 16-year old son only drives one of the vehicles on Saturday and Sunday to a part-time job, no more than 25 miles each week. But the insurance company will require the son to be primary on one of the vehicles and that car will be rated accordingly (premium will triple in most cases)!
Prohibitively expensive insurance cost is one of the main reasons many teens aren't getting licensed until they graduate high school. I'm an independent insurance agent and I have definitely seen a decrease in teen drivers being added to policies over the last five years. Of course, some parents simply aren't telling their insurance company about their teen drivers! That's a very risky gamble, of course. If the teen has an accident, the insurer can choose whether to pay or, what I see most often, they will only pay the other (not-at-fault) driver's damages. When the insurance company discovers an unreported teen driver (because of a claim or any other source), they have the legal right to bill you retroactively to when the teen started driving! The retroactive billing is usually accompanied by a cancellation notice, which will make it more difficult and more expensive to find a new insurer.
It's bad enough for the parents of a teenage girl, but the cost is BRUTAL for a teenage boy! I routinely see the entire policy premium increase by 250% when a 16-year old male driver is added!!! It's more like 170-180% to add a 16-year old female...
Recently, I had a couple that I've known for years call me because their 17-year old son was getting his license and a cheap vehicle of his own. The increase to add him and liability-only coverage on a $5000 car was going to increase their premium by $3350 per year with their current insurer. I told them that it would be a bit less expensive (possibly $500-$800/year less) if they waited until he turned 18. Then they confided that the reason their son needed a car was because he had to get a job because his girlfriend was pregnant. They also said that the he and the girlfriend would be getting married before the baby was born. When I quoted their policy, if the son was married it would save $1400/year! The following Saturday, the teenager parents-to-be got married.
That story is sad on a couple of levels, but I haven't seen an epidemic of teenagers getting married just to reduce insurance premiums....yet!
#599 of 599 Under 30 and got a car recently?
by Stever@Edmunds HOST
Mar 15, 2013 (12:49 pm)
A reporter would like to talk to someone under the age of 30 who bought a car within the last few months. Please reach out to predmunds.com by Wednesday, March 20, 2013 if you'd like to help.