Our insurance slipped away on a patch of ice
Apr 08 '00
It was a dark and icy night. Our first born child, who had been a licensed driver for, oh, maybe a month, was driving a friend home. As he approached a red light, he put his foot on the brakes, skidded on a patch of ice, and ran into the car in front of him.
We lost our insurance
Luckily, our son and his passenger were fine. Both were wearing seat belts, and neither they nor the passengers in the other car suffered so much as a scratch. The cars didn't make out quite so well. Neither was badly damaged, but both required repairs. Our insurance company paid the bills, but when it was time to renew our policy, we were told to go elsewhere. We live in a no fault state in which insurers are not happy doing business. Getting a new policy was not easy, and we could not find any insurer who would take us if our son was to be part of the deal.
We learned our lesson. Like most suburban denizens we, sadly, needed two cars to make a living. We would not take a chance of jeopardizing our insurance again by adding a teen to our policy. From then on, the kids had to get their own insurance.
Kids pay more
Youngsters between the ages of 16 and 24 have more accidents than any other group with the exception of the very elderly. The insurance rates they pay reflect this fact. A teenager in the family means higher rates, one way or another.
An effective, but wildly unpopular, way to cut insurance costs is to institute a policy of not paying for insurance at all, or not until children reach age 17, or even 18. This tactic could save more than money. There is abundant evidence that 16 year olds are more likely to be involved in fatal accidents than are 17 year olds, and 17 year olds are more likely to be involved in fatal accidents than are 18 year olds. A youngster who has to get his own car and insurance is less likely to drive.
My bother has three teens. From the time they were small, he said he would buy each of them a car when they had saved the money for insurance. Without a doubt, this has put a damper on their enthusiasm for driving. My nephew in particular was in no hurry to get a license, being perfectly happy to walk or ride with friends.
A policy of her own?
Putting a teen on a parent's insurance policy may be less expensive than getting her a car and insurance. With one policy, there is often the advantage of a multiple-car discount, and a good driver discount for the parents if they have clean driving records. In addition, if the teen is a good student, another discount may be applied. Still more savings come if the teen is away at school, and the school is at least 100 miles away.
If, however, parents' cars are new, or sporty, or red, or carry high insurance premiums for any other reason, it might be more economical to get a child an old, sedate car, and buy a separate policy.
But while the old car plan is suggested by many as the best money saving strategy, those interested in driver safety point out that teens, thousands of whom die in car accidents each year, need to be in the safest cars possible. Newer cars tend to have more safety features, including air bags and anti-lock brakes.
In any case, most insurers insist that a teen have her own car before she can have her own policy. So if keeping a teen off the family policy is a priority, she will need her own car.
Teens living in two homes
To complicate auto insurance more, parents who share custody of a child each may, or may not, have to add the teen to their policies. Some insurers insist that the child be added even if he only spends two weekends in a month with a parent. Other require only the parent who maintains the child's primary residence to add her to the policy.
This is an area where shopping around really pays. Rules vary widely, and choosing a company that requires just one parent to carry the child could save a substantial amount of money throughout her teen years.
When does a child need to be added?
Again, different companies have different rules. Some insurers insist that a child be named as soon as she gets a diver's permit. Others don't require insurance until she has a full driver's license.
Many insurance companies will honor claims even if they had not been told before an accident that a teen would be driving under the policy, but some will not. Parents who lie about having a driving teen generally will find accident claims denied.
 |
|
|
|
|
|
|
Epinions.com ID:
Profilewriter
|
 - Top 500 |
|
Location: Trenton, New Jersey
Reviews written: 495
Trusted by: 464 members
|
|
|
© 1999-2009 Shopping.com, Inc.