How 2 keep car insurance down for kids

[SR71]

Interested in sharing your ideas to keep car insurance down for new teenage drivers (daughter is almost 16 years – she is our first to reach the wheel)

My vehicle is under the business insurance
I'm primary on the cobra (insured as a collector vehicle with Midwest Classic)
Wife is primary on her vehicle

1. Put Alissa on as secondary with wife
2. Buy a new 3rd “full time” vehicle and insure me as the primary and daughter as secondary
3. Buy a used 3rd “full time” vehicle and insure daughter as primary

Am I even able to be the primary on another vehicle given that I am the primary on the Cobra?

[Zulu]

I will be interested in the answers too, as I have just bought an extra car last week for my almost 16 year old to use when needed.

[TNCobra]

My lowest cost path was to buy a beater, liability only and have them as the primary driver in the vehicle. This was half the cost of simply adding them as a secondary driver on our existing cars. I would give your agent/carrier a call and pose a few scenarios and have them price it.

[TD]

Some companies will discount if the new driver has taken classes (see link).
Street Survival Teen Driving School

AAA is another place that may help with discounts.
Home | AAA Keys2Drive

[ROB J]

The best way that I have found to keep the rates down, is to buy them a Schwinn.

[FFR5452]

Originally Posted by TNCobra

My lowest cost path was to buy a beater, liability only and have them as the primary driver in the vehicle. This was half the cost of simply adding them as a secondary driver on our existing cars. I would give your agent/carrier a call and pose a few scenarios and have them price it.

By far the best option, however, make sure the liability limits on her car are at least as high as yours. If she does major damage in an at fault accident, in some States, you and all your assets can be in jeopardy in a lawsuit.

Once again, ask your agent for a definitive answer. It could save you a few dollars on insurance costs but potentially cost you everything you own in the worst case scenerio.

[KillerBox]

Subscribed. I have 2 teenage sons each with their own vehicles so my insurance is 2.5 times more than it used to be.

[Mustang Man]

My son is 19 with a Mustang and my daughter is 17 with a Ranger 4x4. When they both started on their restricted license (15 here in FL), they were added as secondary drivers to my wife's Explorer Sport Trac only (not my Mustang or the two classics, which are under special/separate insurance anyway) and there was no increase in insurance cost.

State Farm told us that when they turned 16 and got their full license that they would cause our rates to go up whether they were listed as a secondary driver or primary on their own vehicles. So, while they do have their own vehicles now, they remain listed as secondary drivers on the Sport Trac in case either of them need to drive it.

BTW, the Ranger is titled in my wife's name with an "&" my daughter, while I am on the Mustang with an "&" with my son. This way when they want to have the car in their own name eventually we just drop one name off of the title and there's no title transfer fees, no new tag fees, etc.

Lastly, while these replies I'm sure will be helpful, your best bet is to check your state laws and your insurance provider's requirements.

HTH...
Mark

[ehodger]

I have an old beater f250 4x4 that I use for firewood, hunting and fishing. He never drives it unless we get a bid snow storm but that is what he is listed on as the primary driver. Lots cheaper that way.

[AC Bill]

Both my kids had their own insurance on their cars from day one. Cost a little more initially, but every year accident free, their rate drops. After five years accident free, it drops 40+% here in BC.
That's a pretty big incentive for them to drive carefully. Of course if your paying the shot, they might not care so much. That's why I made them pay for most of their insurance themselves. Teaches them responsibility. Either that, or take the bus..

[FFR5452]

Originally Posted by Mustang Man

My son is 19 with a Mustang and my daughter is 17 with a Ranger 4x4. When they both started on their restricted license (15 here in FL), they were added as secondary drivers to my wife's Explorer Sport Trac only (not my Mustang or the two classics, which are under special/separate insurance anyway) and there was no increase in insurance cost.

State Farm told us that when they turned 16 and got their full license that they would cause our rates to go up whether they were listed as a secondary driver or primary on their own vehicles. So, while they do have their own vehicles now, they remain listed as secondary drivers on the Sport Trac in case either of them need to drive it.

BTW, the Ranger is titled in my wife's name with an "&" my daughter, while I am on the Mustang with an "&" with my son. This way when they want to have the car in their own name eventually we just drop one name off of the title and there's no title transfer fees, no new tag fees, etc.

Lastly, while these replies I'm sure will be helpful, your best bet is to check your state laws and your insurance provider's requirements.

HTH...
Mark

Technically, in California at least, your kids should each be listed as the primary driver on their own vehicle. With State Farm, that allows each of them to drive any vehicle in your household whether they are listed as a driver on that vehicle or not.

How are their cars insured and who is listed as the primary driver of each of them? Also, having your name on the title and the insurance policy further adds your assets to the legal food chain should either of your kids have an expensive accident. If it were me and my assets, I would want as much distance as possible between my assets and my teenage driver. Since their accident rate is the highest in the nation statistically, having my name on either the title or the insurance policy is a chance I'm not willing to take.

Might be different in Florida, though!

Not sure how Florida treats passing a car to one's children, but in Ca. a parent can transfer ownership to a child with no taxes or fees. Just a small charge to change the registration certificate.

[John / My427SC]

Have them listed as the primary driver on their own vehicle and only carry liability for the vehicle. Unless you have deep pockets, they should definitely be driving something older and not very sporty, lol

My daughter in fact got into an accident (her fault) and I found that even though my son was in the Air Force and no longer living at home, it was actually still cheaper for me to still carry him on my insurance

What also helped at the time is I get my car insurance through Costco - they use AmeriPrise, and I could actually go on line and change around drivers, vehicles, mileages, etc until I came up with the cheapest scenario. Not sure if they still do it that way or not

[Mustang Man]

Jim, they are listed as primary drivers on their own cars, and secondary on my wife's Explorer.

Here in FL they get you for title changes (all fees double two years ago). So when we titled the Mustang (his previous car was in my name only) I added his name. This way I can later transfer to him full ownership and it's not like "selling" the car, as both names are already on the title.

I know some people tow a hard line here about kids and making them pay their own way, and trust me, we don't spoil our kids, but we did get them their first cars (used, under 2K each) and pay for their insurance so they can concentrate on school. My daughter just started a part time job (senior in HS) and pays her gas now, but my son is a full time college student and taking advanced classes and a big schedule (to graduate early), so for now we don't mind paying their insurance. Plus, as stated, it is cheaper in the long run than if the insurance was in their name (and we'd still be paying it).

Mark