16 Yr Old About to Get her DL. Help !

[red fuji]

daughter about to get her DL in few month; like any teen, she’s ecstatic and i am about to have an anxiety attack. I would rather wait till she's married
then it becomes her husbands problem. How do i prepare for this? the premium hike i hear from others is not pretty.
Any tips (small or great) would be greatly appreciated.

three drivers in household(she's the third) and two cars.
she is 16, 11th grade, As Bs student.
her own car? probably next school year. whats an ideal car for her?
Southern California

 

[KPIA]

The premium increase does not have to be THAT bad. She's a good student, that helps. If your company allows, have her rated on a vehicle that does not have Comprehensive and Collision coverages on it. If both cars have Comp & Coll, consider getting her a car of her own that doesn't cost a lot so you can just carry Liability and Uninsured Motorist on it. Problem is, many companies will insist on rating her on a full coverage car if one is on the policy already.

What you DON'T want to do is try and insure her on a separate policy (a very common mistake). She likely loses the benefit of many discounts that you get plus it could create gaps in coverage.

Of course there are other tips depending on you and your situation, but I haven't the time to write an essay here. A good independent agent can give you lots of tips based on the companies he/she represents.

Of course, I am a good independent agent and I also happen to be in SoCal. You can reach me through the website in my signature.

 

[BlockO]

What you DON'T want to do is try and insure her on a separate policy (a very common mistake). She likely loses the benefit of many discounts that you get plus it could create gaps in coverage.

That is true most of the time, but not always. her parents can also be the named insureds on the separate policy as well. that way, the only discount she would lose is the multi-vehicle policy discount.

and as far as gaps, parents understand that by having two separate policies, little Suzie can't be driving their full coverage vehicles, only the vehicle on the separate policy, which is just liability.

this gap is no problem for many parents. and most companies will allow for drivers to be added and then quickly removed days later for special occasions like prom night, homecoming etc. (when Suzie gets to drive her parents car).... so really, the only gap there is if little Suzie is a hell raiser, and takes mommy or daddy's car without permission.

 

[KPIA]

so really, the only gap there is if little Suzie is a hell raiser, and takes mommy or daddy's car without permission.

Parents with Company A, Suzie with Company B, Mommy buys new BMW, totals it on the way home from the dealer... No coverage as it had not been added onto the policy yet.

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To the original poster...

Articles from my blog on the subject:

Teen Car Insurance Part 1: Insuring a New Driver | KPIA

Save Money on Auto Insurance for Your Teen Driver | KPIA

 

[INSANDTAX]

I would also recommend (if you own your home) to look into getting/increasing your Umbrella policy for added coverage.

 

[indienoise]

Separating on two policies is not likely to save very much money, if any at all, and can end up causing some real headaches as has been mentioned. If your insurance company has a huge hike for adding a young driver, then search for another who is softer on young drivers in terms of premium. I used to be with a captive carrier (who has a nearly identical product available to independent agents) who was inexpensive on adding youthful drivers and that was one scenario in which I almost always beat other carriers out. Do some searching and you will find what you need.

 

[InsCommentary]

Do NOT buy a separate policy for your daughter, especially one with lower liability limits. If you have separate policies and you are sued for an accident your daughter has in her car, YOUR policy quite possibly will not cover you if it's "ISO standard" language. Keep all residents on the same policy and make sure you have high liability limits AND a personal umbrella policy.

 

[SummerSheep]

I am going to disagree with what some people are saying here.

Option A: If you have separate full coverage (read: comp + collision) vehicles that you and your spouse drive, and your daughter absolutely, 100 won't drive even in incidental use, exclude her from your policy and insure her with a separate carrier for an older liability only vehicle. List yourself + spouse as named insureds; BUT:

Realize that if she exceeds the liability limits on her policy, with you as a named insured, you potentially assume any additional liability risk. So therefore, it is smart to have her on her own policy, with you as the named insureds, provided you set her up with reasonable liability limits equal to yours or higher (with a younger driver, I would have 100/300 minimum).

So to recap: you + spouse as named insureds; she's a listed driver; separate company from your main insurance company; an older vehicle, like a 2003 Toyota Camry; liability only, but high liability + uninsured motorist limits (100k/300k or 250k/500k). This way, you are more protected from litigation.

To do this, make sure the vehicle is registered in your name or your spouse's name.


Option B: Have her on her own policy, vehicle is registered in her name, she pays anywhere from $200-$500 per month for liability coverage only on an older vehicle because hs is 16.

Option C: Shop around for the best carrier to put everybody together, have her listed on a liability only vehicle, but able to drive any vehicle. This depends on you + husband having clean driving records, good credit, etc. If this is the case, and you carry at least 50/100 currently, I would check out companies like Travelers, SafeCo etc.; preferred companies where your other good things can offset the balance of a new driver, and also incorporate her good grades. Good grades will save you $5-$20/month, depending on total premium, but it won't save you from a $200/month increase. So prepare accordingly.