Being added as an occasional driver to parents' policy - 19 years old.

[CarKey]

I've been delaying getting my full license (I've had my permit for 4 years) because of the increase of insurance premiums. I just turned 19 in December, and have been trying to get a straight answer from my parents' insurance agent about how much the premiums would increase ever since. Finally, I was informed today that it would be an additional $97/month, or nearly $1200/year for me to be added as an occasional driver. He also said I could get (about) a 10% discount for taking a driver's education course.

I do not own a car, and am not planning on owning one for at least a year. My sister was only 18 when she got her license, and she had already bought a car, yet it was only $800/year for her to be added. What's the deal? Why do I have to pay so much just to drive my parents' car once in awhile? Even with the 10% discount, that's $1000/year.

Does anyone know of a way I can get it under $700/year?

[fredjacksonsan]

CarKey, Welcome to AF.

All of us have or will face the initial high cost of insurance to drive. Your sister got cheaper rates because she is a she, and it was a couple years ago (from reading it sounds like she's a bit younger).

Anyway, you probably won't be able to get around it, at first, except by taking the safe driver course. Then, after having a couple of years of ticket-free driving, your rates will go down.

All of us male drivers in the US look forward to the day we turn 25, which is a HUGE difference in the amount of insurance to be paid.

Good luck with everything, take the course to get the insurance company on your side, then drive conservatively until your rates drop.

[CarKey]

Originally Posted by fredjacksonsan

CarKey, Welcome to AF.

All of us have or will face the initial high cost of insurance to drive. Your sister got cheaper rates because she is a she, and it was a couple years ago (from reading it sounds like she's a bit younger).

Anyway, you probably won't be able to get around it, at first, except by taking the safe driver course. Then, after having a couple of years of ticket-free driving, your rates will go down.

All of us male drivers in the US look forward to the day we turn 25, which is a HUGE difference in the amount of insurance to be paid.

Good luck with everything, take the course to get the insurance company on your side, then drive conservatively until your rates drop.

Sorry for the misunderstanding, but I am a "she" as well, and my sister is 5 years older than I am. I should have been more clear.

Anyway, I will definitely be looking around at other companies. But, my original point still stands: I don't think I should have to pay any more than my sister did for insurance, especially considering the fact that I do not own a car, and I am one year older than she was when she got her license. Also, my parents' premiums (just the amount they are paying for themselves) have not increased since she was on their policy.

[G.A.S.]

Yep.
This is one of those things young lady. ( corrected that )
Just wait till you have to pay for it all on your own.
House insurance, life insurance, car ins. gas, food, lights,heat,water/sewer,proterty tax and then , Oh shit, the hot water heater took a crap.
falt tire.
I wont go on.
Do the right thing and take the drivers course and show your a good driver, get the 10%, thats a hundred you acn use in gas.
eather way you wrap this gift, it bites

[fredjacksonsan]

Originally Posted by CarKey

Sorry for the misunderstanding, but I am a "she" as well, and my sister is 5 years older than I am. I should have been more clear.

Anyway, I will definitely be looking around at other companies. But, my original point still stands: I don't think I should have to pay any more than my sister did for insurance, especially considering the fact that I do not own a car, and I am one year older than she was when she got her license. Also, my parents' premiums (just the amount they are paying for themselves) have not increased since she was on their policy.

Whups...sorry to make an assumption on gender!

There are a couple of reasons I can think of that she got cheaper rates. The first is that your parents have a newer car now than they did when she started. The second is that inflation does take its toll on everything.

That said though, I agree that if you are older than she was when she started, that your rates shouldn't be higher...odd also that your parents' policy hasn't increased from adding her. I'd suggest talking with your parents (since it's their policy) and your insurance agent to find out just what is going on. It may be that the policy allows one lower aged driver, but not two, or something weird like that - there are any number of rules/reason/regulations/conditions that insurance companies use. Talking to your agent to find out the particulars will probably help out, although it won't for certain get a reduction.

Shopping around can't hurt either, so that's a good idea. All in all, auto insurance is something you definitely shouldn't go without; even though it may be painful to pay for up front, it's a reality we all have to live with.

Hopefully all this helps, let me know if you have any other Qs.

[CarKey]

Originally Posted by fredjacksonsan

Whups...sorry to make an assumption on gender!

There are a couple of reasons I can think of that she got cheaper rates. The first is that your parents have a newer car now than they did when she started. The second is that inflation does take its toll on everything.

That said though, I agree that if you are older than she was when she started, that your rates shouldn't be higher...odd also that your parents' policy hasn't increased from adding her. I'd suggest talking with your parents (since it's their policy) and your insurance agent to find out just what is going on. It may be that the policy allows one lower aged driver, but not two, or something weird like that - there are any number of rules/reason/regulations/conditions that insurance companies use. Talking to your agent to find out the particulars will probably help out, although it won't for certain get a reduction.

Shopping around can't hurt either, so that's a good idea. All in all, auto insurance is something you definitely shouldn't go without; even though it may be painful to pay for up front, it's a reality we all have to live with.

Hopefully all this helps, let me know if you have any other Qs.

That's okay. Thanks for the advice.

My sister hasn't been on their policy for several years now, though (sorry I didn't mention that before); she got married in 2002. Yes, I have been talking extensively with my mom about this. She confirmed that if you deduct the $800 increase for my sister, they were paying pretty much the same amount then (about 6 years ago) as they are now.

I suppose it could be that we just need to all sit down with the agent and figure out what the deal is. It's pretty obvious he isn't very concerned about communication. I had to send him the same e-mail three different times before he would respond, and when he did he didn't bother to elaborate on anything.

Something funny I noticed when I was getting some ballpark estimates from an insurance company online earlier: If I were married my premiums would be 1/2 as much. I found that rather amusing, but understandable.

[fredjacksonsan]

Yeah, they pretty much figure that married people aren't going to be out causing trouble like single people. In many cases it just isn't true, but that's what the statistics say.

Sounds like a sit down with your agent is in order.

['97ventureowner]

There are a couple more points I'd like to add to fredjacksonsan's post (#5 above) concerning reasons for the increase. I read an article a couple of years ago that said the gap between rates for new male and female drivers was decreasing and was expected to be practically the same within a few years. The reason given was statistics showing that female drivers were having just as much if not more accidents and claims as their male counterparts. That will help to drive up costs for females.
Another factor to consider is the amount of total claims and amount paid out continues to increase on a yearly basis and along with what was said earlier concerning the rate of inflation, that will also cause rates to rise for not only young drivers , but other groups as well. And like I said earlier if the claims for the young drivers group increase, then rates are also likely to increase.
When I started driving 24 years ago I paid for my insurance out of my own pocket. I had a separate policy by myself. My rate back then was $660/yr, and decreased on a yearly basis after that. My daughter is only 10 but I shudder to think how much insurance will be for her when she starts driving .