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Sprnklrmn
February 28th, 2014, 04:49 PM
Am trying to figure out the best way to go with a new driver. We bought a vehicle for the boy, it's titled and registered in my name, and it is on my insurance policy. The increase wasn't much, around $130. He did pay a significant portion of the purchase price and I have told him for years that insurance is going to be on him. He has worked hard during the past 3 summers and has really never spent a dime of his paychecks, so he is in good shape financially.

What I am wondering is do I have to add him specifically to my policy? The truck is insured, so anybody who drives the vehicle with my permission is covered. To name him specifically on the policy will cost an additional $500. The agent says yes, he needs to be named on the policy; why though? My boy is going to pay the $130 increase in premium, but I don't think technically he needs to pay the extra $500. Insurance goes with the vehicle, right? As long as he has a valid license and my permission to drive my car, he is covered in the event of accident, correct?

Colo.TJ
February 28th, 2014, 04:53 PM
He's licensed driver permanently living in your household under your care. IOW, he's your responsibility until he's an adult and out of the home. Once he's licensed the insurance company is going to want him listed on the insurance policy.

Wulf
February 28th, 2014, 04:55 PM
The truck is insured, so anybody who drives the vehicle with my permission is covered.

I would double check this because I doubt it is the case, I agree with COTJ

tacotoy
February 28th, 2014, 05:02 PM
ummmm that sounds a little strange, my insurance doesn't add any extra money to add the names of drivers already on the policy to the underwriting or whatever so his name shows up on the front of it


or are you saying that you added the truck, and that cost 130 extra a month, but you haven't yet added him as a driver to the policy. does he have his license yet? IIRC you have to show proof of insurance with your name on it somehow in order to get licensed unless something changed?

Wulf
February 28th, 2014, 05:16 PM
IIRC you have to show proof of insurance with your name on it somehow in order to get licensed unless something changed?

This is correct. The truck is in the dad's name as is the insurance so he was able to register it.

I could not register my truck with the DMV until I had proof of insurance in my name, not my parents.

Sprnklrmn
February 28th, 2014, 05:21 PM
The truck is added to my policy with liability coverage only. The increase in premium is a prorated amount, $130 covers the truck through next September, which is when I generally renew (so not per month).

He gets his license next week, so he can't be added to the policy as a driver until then. If/when he is added next week, they want another $500 (yearly amount, so probably will be $250 since I am 6 months through the insurance term).

For the plates, I went down to the DMV with emissions, the proof of insurance (which I got when I added the truck to my policy), bill of sale, paid the man and got the plates and title. Registration and title have my name only.

tacotoy
February 28th, 2014, 05:46 PM
This is correct. The truck is in the dad's name as is the insurance so he was able to register it.

I could not register my truck with the DMV until I had proof of insurance in my name, not my parents.

This is true on both sides, to register a vehicle, and to get a drivers license. I had to provide proof when they decided to let me drive again.


The truck is added to my policy with liability coverage only. The increase in premium is a prorated amount, $130 covers the truck through next September, which is when I generally renew (so not per month).

He gets his license next week, so he can't be added to the policy as a driver until then. If/when he is added next week, they want another $500 (yearly amount, so probably will be $250 since I am 6 months through the insurance term).

For the plates, I went down to the DMV with emissions, the proof of insurance (which I got when I added the truck to my policy), bill of sale, paid the man and got the plates and title. Registration and title have my name only.

When i got mine reinstated i had to show proof of insurance with my name on it.... i just combed the colorado site and didn't find anything. It might be worth a call though, i found out the hard way and had to sit and wait for the insurance company to send something over

Barf Bag
February 28th, 2014, 06:17 PM
When our oldest son got his license, our insurance agent wanted us to add him to our policy.

2 problems with that - cost and there was no way in hell i was ever going to let him drive one of my cars, ever.

I filled out a form stating he would not drive my cars and would never have permission to drive my cars. I told him if he wanted to drive, he needed to get insurance. He got his own policy through progressive. win/win for all (except progressive, he cost them a lot of money)

Sprnklrmn
February 28th, 2014, 07:39 PM
When our oldest son got his license, our insurance agent wanted us to add him to our policy.

2 problems with that - cost and there was no way in hell i was ever going to let him drive one of my cars, ever.

I filled out a form stating he would not drive my cars and would never have permission to drive my cars. I told him if he wanted to drive, he needed to get insurance. He got his own policy through progressive. win/win for all (except progressive, he cost them a lot of money)

my goals are to
1 - Be legal
2 - Have him be covered in case of accident
3 - Save him as much money as possible

Telling him to do his own thing with Progressive would be very costly; why would I do that?

I think that the way it is now all my goals are met. Insurance goes first with the vehicle. If you and I are wrenching on your rig, you need to go on a parts run and say Hey, can I take your truck down to Napa? I say Sure, I;ll just stay here and make sure this beer doesn't get too warm. You get in an accident it will be my insurance company that pays; you were driving my truck with my permission so it is my insurance that is on the hook.

I understand why the ins company wants to ding you more when you add a young inexperienced driver; my contention is though that with the way the law reads the boy is covered with the situation just the way it is, so why go through the extra expense of naming him on the policy?

What am I missing here?

It would be different of course if his name was on the title. But my name is there, I am the owner lending the truck to him to drive. If he gets pulled over the proof of insurance naming the truck is right there in the glove box. Ditto with an accident, the truck is covered.

bsaunder
February 28th, 2014, 07:39 PM
The insurance is for you on your vehicles, not just your vehicle.

Some insurance companies will allow you to exclude young drivers from all vehicles except one. This will usually reduce the costs.

If you choose to not put his name on the insurance (but allow him to regularly drive) and the insurance company finds out he is a regular driver they will generally make you decide between adding him at an even higher rate, or dropping you. I've known more than one family that tried it and ended up getting dropped without any choice.

ZJROCKRIG
February 28th, 2014, 10:56 PM
Similar situation. Kid turned 16, told the agent 4 times he was going to be driving his Jeep but it's registered to me. They even talked me into an umbrella policy as well.

Well, he is not named on any vehicles, still. He turns 18 in 12 days. He is going to find his own insurance if he wants to or not. He does not get that he will be an "adult" and not my liability.

otisdog
March 1st, 2014, 09:54 AM
This is where you need to read the fine detailed print of your policy. I'll bet that it's addressed in there somewhere or at sometime you answered a question asking you if anyone under 21 would be driving your cars. Don't play games with this - find out for sure. It could cost you a small fortune if you do the wrong thing.
Drivers under 21 and especially under 18 are very high risk for the insurance companies and therefore you or your kid will pay for it.
Jim

Dave McDonald
March 1st, 2014, 10:06 AM
^^^^This. When you signed up for the insurance, somewhere along the line they asked "Is anyone under the age of xx going to be driving?" That allows them to drop the cost for you by excluding the young drivers. It's a really good bet that if you don't list your kid on the policy, he won't be covered. Also, he'll only be covered on the vehicle you list him on - so taking Mom's nice fancy ride on a date is not going to be covered.

Edit: Good grades get discounts, and the really high rates come down in a couple of years if he's got a clean record.

Barf Bag
March 3rd, 2014, 12:47 PM
Telling him to do his own thing with Progressive would be very costly; why would I do that?

In my kids case, it was an "actions have consequences" thing. It actually ended up being cheaper for him to have his own policy through progressive on his old truck than add him to our policy. The added bonus for me was there was a concrete reason for not letting him drive my cars, even if my wife thought he had learned his lesson.

starbreaker666
March 3rd, 2014, 01:09 PM
I am glad we never had any of these issues with my 16y.o. Just called the insurance when she got her license, added her to the policy, rate went up like 25$ a month and done..

Tricky69
March 3rd, 2014, 09:14 PM
I am glad we never had any of these issues with my 16y.o. Just called the insurance when she got her license, added her to the policy, rate went up like 25$ a month and done..
I have USAA with a now 18 yr old and a 24 yr old.They have both been on my policy since 16 with not much of an increase.I keep them on mine to help them.as one is in college and the older is paying off student loans.They randomly will email me asking if they're ready for there own policy and I just reply not yet... To answer your ? I did have to add them to my policy but all cars are registered to me and my wife.

JR4X
March 3rd, 2014, 10:05 PM
So how does the ins work when you let your kids get time in the seat leading up to them getting their license? I must admit I dont know the correct way or what is legally allowed coming from the family I have. Is your child allowed to drive your car if you are in it at the point when they just have the learners permit? What about when that transitions from permit to actual lisence? What about siblings or nephew's neice's? Friends kids? And does it make a difference in what kind of insurance you have, as in just liability only or full coverage?

UnlimitedFun
March 4th, 2014, 05:24 AM
USAA wants all drivers in the home that drive vehicles on the policy on the policy. In the case of Learner's Permits, the kids are listed but there is no change in premium. I don't know about other insurance companies, but USAA takes how long someone has been driving into consideration which is part of why they want Learner's Permits added as part of that documented longevity.

newracer
March 4th, 2014, 07:57 AM
We have State Farm and my son currently has his permit. We did not have to list him specifically on the policies yet but as soon as he gets his license we do.

cocamper
March 4th, 2014, 09:22 AM
^^^ Same thing with American Family. I called them when my daughter got her permit (about 4 months ago), they told me she is covered under our policy while she has her permit, once she gets her license, then we have to add her to our policy. They told me they will add her to vehicle that would be the "cheapest", but that she is covered on all vehicles...

JeepDiva
March 4th, 2014, 12:28 PM
I have no advice. I just wanted to say, wow, it's hard to believe your boy is that old already! I remember the little guy riding along talking about how "big jeeps go over big rocks". :)

JR4X
March 5th, 2014, 09:35 AM
To re-pose my question in another way. Say I am on a road trip and we take my vehicle. If I let some one else not on my policy drive while I am in the pass seat. The vehicle is still covered as it would be normally, correct? Does the same go if I am letting my 17 yo nephew drive me around?

bsaunder
March 5th, 2014, 10:44 AM
To re-pose my question in another way. Say I am on a road trip and we take my vehicle. If I let some one else not on my policy drive while I am in the pass seat. The vehicle is still covered as it would be normally, correct? Does the same go if I am letting my 17 yo nephew drive me around?

It depends on your insurance as well as local and state laws. Unfortunately, not entirely cut and dry.

A "for instance" - when I had progressive, if any of the named drivers were driving, then we had full coverage. If someone other than a named driver was driving, then it was liability only.

With the newer laws around young drivers, it's possible that a 17yr old can not legally drive your vehicle unless you are the one that signed the permit. If they aren't legally driving, then they may not be covered at all by your insurance.
My current insurance has a fairly easy to find clause that says I'm certifying that no one under the age of 25 will be driving any of my vehicles. That clause, or one similar, seems to be pretty standard.

Sprnklrmn
March 8th, 2014, 09:38 AM
I have no advice. I just wanted to say, wow, it's hard to believe your boy is that old already! I remember the little guy riding along talking about how "big jeeps go over big rocks". :)

Ha! and "Scouts drive over little rocks". Those were fun days. He got his license yesterday. We put 31's on his Ranger last week; going to take it over to Slaughterhouse today and get it stuck a bunch!

ZJROCKRIG
March 15th, 2014, 10:07 AM
Similar situation. Kid turned 16, told the agent 4 times he was going to be driving his Jeep but it's registered to me. They even talked me into an umbrella policy as well.

Well, he is not named on any vehicles, still. He turns 18 in 12 days. He is going to find his own insurance if he wants to or not. He does not get that he will be an "adult" and not my liability.

Just wanted to bring this up again. And admit myself, I was being arrogant with my above post. Probably was pissed off at him that day.

So my son just turned 18. Went and talked to my agent. After a brief discussion, we just added him to our policy and his rate only went up $30. He can stay on our policy legally until he is 25 and the premium is based on our oldest vehicle, his '98 ZJ.
And he is covered on our whole fleet as well.

So for $76 a month, the kid gets full blown coverage, and we have higher than normal limits as well as the lowest allowed deductibles, the benefits of all our discounts as well as his own discounts for a high GPA & driving courses. Pretty good deal for him.

So in light of a related post awhile back about teenagers, I stepped back took in the big picture.