Hi. We just got a new car here in Austin, Texas. My son has been pressuring us to let him drive. But we’re having second thoughts about it because when we asked for a quote from our auto insurance company, the rates were just too high. Would you know how I can save on teen driver insurance in the Austin area?

Rush

Austin, TX

Hi Rush. Sadly, getting a teen driver insurance or adding a teen driver to your policy will cost you more than you would expect. The good news is, there are several ways of bringing this rate down for you. So read on. First of all, the best way to get the best rate is to compare between several automotive insurance providers in Austin. Of course, I wouldn’t want you to waste your time going to different offices or making several phone calls. The easiest way to do this is to go online and look for those nifty new websites that give free car insurance quotes. If you have two or more cars, check which car they list your teenage driver under.

There are some companies that will include your teen driver on the policy for your most expensive car, thus giving you a higher premium than if they listed the teen with the cheaper vehicle. If you do this, make sure you don’t let your teen drive the more expensive one. Another way would be to have your teen take some Driver’s Education classes.

Some companies offer a discount to teens who read up on their offered courses. Another way could be to volunteer to pay for a higher deductible. This would cost you if your child ever does get into an accident but would save you on your premiums.

My name is Errol and I’m from Anaheim, CA. My dad has a Mustang (ya baby!) but he uses his hybrid to and from work. I am going to get my license three months from now, and I plan to use that mustang (baby!) every chance I get. Is my dad going to pay more if he adds me to his insurance policy? Can you help me get a lower rate quote or at least tell me where to go to get the cheapest auto insurance I can possibly get for this car…and my age, I am only 18.

Errol

Anaheim, CA

Errol, Errol, Errol, according to statistics, and insurance companies believe in them with uncommon fierceness, teenagers are a reckless lot. They were the ones who coined the phrase “pedal to the metal,” and they are not known to be experienced drivers. Your dad will pay more because of these statistical data. He will pay more because the risk factor just got colorful.

I assume that you are already driving the Mustang (Baby!) every once in a while but with a “chaperone.” When you get your license three months from now, the cost of insurance will increase even more (not to mention your dad’s blood pressure) because you will then be able to drive the mustang (baby!) by yourself most of the time. teenage drivers, premium will increase; teenager with a license, more increase.

Again, this is about the colorful risk factor and statistics that I told you about. As disheartening as it sounds, the price will not be as high as getting your own policy.

All in all, your dad’s insurance will increase but it will not be as expensive as getting you your teen car insurance. Drive around Anaheim and enjoy your Mustang (baby!) but please don’t make your dad get a drunk driver insurance.

We purchased a new vehicle for our seventeen year old daughter and we would like to get a separate car insurance policy for her so we will not be liable if anything happens. But our car insurance company in Paterson, New Jersey said that we will still be held responsible in case of accident, is this correct?

Anna

Paterson, NJ

Generally, yes, it is true that you will still be responsible as parent to a minor. In many states, a minor will require consent from their parents. In most states, a teenager will need to get their parent’s consent form before they can get their drivers license that state that parent’s will be held liable for any negligent acts that will cause damages.

In the state of New Jersey, I not aware of any age restrictions on getting car insurance if you only have provisional license or learners permit. Normally you will need to have your parent’s consent before you can purchase car insurance if you are still a minor since you will need to sign to a legal binding paperwork. So, if you are still seventeen years old and planning to purchase car insurance in New Jersey, then you would need to have your parent or legal guardian to sign the car insurance policy with you.

It is much cheaper to add your child in your car insurance policy in Paterson, New Jersey than having a separate car insurance policy for your daughter. You may consider to get umbrella policy to protect your assets.

Is it possible for me to get my own car insurance policy in  Minnesota? I am a 18 year old beginner driver, and I finally got my own car…..yahoo!!

Richard

Minnetonka, MN

You should be able to get your own car insurance policy at age of 20 if you are a fully licensed driver. Your vehicle insurance rates will probably be expensive as a young driver. However you would be able to place auto insurance on your car if you are fully licensed.

If you do not have your own car, then you may obtain a non-owners vehicle insurance policy. Basically this is a liability coverages that could be used when renting a vehicle.

If you are still residing at home with your parents normally it will be cheaper to stay on their auto insurance coverage until you move out. Some parents though would want their children to have their own car insurance policy once the child has bought a vehicle which they do not want to place on their car insurance policy.

At the age 20, as an adult, you can have your own auto insurance policy. Normally you would have to have a parent or legal guardian sign on your insurance document if you are under eighteen years old since teens cannot enter into contracts.

I live in Ann Arbor, Michigan and I would like to know if I have to name my sixteen year old son as a driver on my car insurance policy? I have been told that if I have auto insurance then anyone I permit to drive my car is covered.

Jerome

Ann Arbor, MI

Most insurance carriers in Ann Arbor, Michigan require you to list all licensed household members on your car insurance policy since they are a risk factor the insurance carrier is allowed to take into account when determining your car insurance rates. According to the MI insurance regulator, the Office of Financial and Insurance Services, in their insurance consumer information sheet that your insurance carrier will ask about all licensed drivers in your household and look up their driving history as part of the rating process.

While automobile insurance normally covers those that the vehicle owner gives permission to operate it, the insurance carrier also has the right to require as part of your car insurance policy that you tell them of all licensed household members so they can pull their driving history and rate you accordingly. Friends that may borrow your vehicle from time to time are not the same type of risk for an insurance companies and that is why friends and neighbors are not required to be listed on your auto insurance policy while household members are. Household members obviously have access to the automobile that those living outside of your residence do not.

If your son is just starting the Michigan graduated driver licensing (GDL) process and only has his learner’s license you should inform your insurance carrier. It may be that they will permit you to wait until he is fully licensed before requiring him to be added or will want him added now at this stage.

You can contact your insurance carrier to determine what they require of you regarding listing your sixteen year old son on the car insurance policy. If you have specific MI insurance law questions you can contact the Michigan insurance regulator.