Adding new teen driver to family - what happens to rates

[aigel]

My oldest one is really hot on starting to drive. However, there is no need, i.e. to get to school or a job. All can be done by bicycle in the medium sized town and moderate climate we live in.

I appreciate the drive and do think that learning how to drive a car is still a good idea. I also like the idea of having a designated driver, sending for errands and being able to get to some jobs that may require evening shifts, such as babysitting or restaurants etc.

So, what have you guys experienced happens to your insurance rate once you add a teen driver. I doubt you can just get them signed up for one car in the family, right? All your cars will go up, right? I currently have the 993, a pickemup and a golf TDI. The 993 will probably take the biggest hit?

I was hoping to replace the TDI with a sports car or a hot hatch when I have to sell it back. At least a GTI. Is that still a good idea with a teen driver coming on board around the same time?

Inptut / discussion?

Cheers,

George

[KNS]

Your rates will go up but only on the car he will be driving. If you and your wife both have a daily put him on the older car of the two. His name can be on the 993 but keep him out of it.

[Por_sha911]

It depends on what company you have and where you live. For instance, with some companies if you have enough vehicles, you can put the teen in a dedicated car for him only and the company will not penalize the other cars.
In most cases, the phrase "grab your ankles" will be appropriate.

[Porsche-O-Phile]

I remember being told "congratulations on getting your license - if you want to use the car, you pay for your own insurance, gas, etc. or you get your own and pay for that". My dad showed me the before and after rates and I had to come up with that difference every month until I eventually got my own car, at which point I bought my own policy and was responsible for it.

Why the heck parents let their kids automatically assume they're going to be able to drive their cars around for free is beyond me. Welcome to (near) adulthood - how are you going to pay for the things you want? That's one of the most important life lessons you can get across to kids before they're 18 yet so few people seem willing to take a common-sense approach to it the way my dad did. I worked a P/T job after school and on weekends and paid for the stuff I wanted that way, or I walked. Why is this so hard for people to understand? When a kid gets a driver's license they're usually only a year or two away from being a legal adult and had damn well better be able to show a little responsibility and ability to stand on their own two feet, IMHO.

[Chocaholic]

Now that you've been lectured by POP on a topic you didn't ask about...Our rates did not change while they were on a permit. Only once they got fully licensed and we let that happen only after they reached 18. But, I believe all our cars went up. Perhaps it differs by state. Even if assigned to one car, they can legally drive all. You may want to move your Porsche to Haggery or such if so.

And, stay the hell off POP's grass!

[VFR750]

Each child added about $1200 per year.

And absolutely worth it.

Kids cost a lot. But train them to be adults and they want to be on their own.

17-18 is a great age to give them local driving experiences so they are ready for life when they are on their own.

Plus they get to drive themselves to all of those activities and drive themselves home when it ends.

[widgeon13]

Is the cost the same for female and male dded to policy? When I was growing up the cost to add male was substantial vs female.

[KFC911]

When I was young, getting your license on your 16th b-day was a BIG deal...freedom!!!

Though I had access to one of my dad's cars, I knew early on that MY first car would be my own purchase...a new Jeep CJ5 when I was 17....couldn't have done it if the insurance was in my name however and dad paid for that....his way of assisting me . POP raises some good points from his huge soapbox imo....taken with a grain of salt though.

[jcommin]

Originally Posted by aigel

My oldest one is really hot on starting to drive. However, there is no need, i.e. to get to school or a job. All can be done by bicycle in the medium sized town and moderate climate we live in.

I appreciate the drive and do think that learning how to drive a car is still a good idea. I also like the idea of having a designated driver, sending for errands and being able to get to some jobs that may require evening shifts, such as babysitting or restaurants etc.

So, what have you guys experienced happens to your insurance rate once you add a teen driver. I doubt you can just get them signed up for one car in the family, right? All your cars will go up, right? I currently have the 993, a pickemup and a golf TDI. The 993 will probably take the biggest hit?

I was hoping to replace the TDI with a sports car or a hot hatch when I have to sell it back. At least a GTI. Is that still a good idea with a teen driver coming on board around the same time?

Inptut / discussion?

Cheers,

George

I had an awful experience with my oldest son. He got his license at 18 and I put him on my policy. I can't remember the bump to my car insurance. He wasn't a student and therefore "good student" discount did not apply. In 2 years of driving, he amassed more tickets that you could ever imagine. He totaled a car, got his license suspended for a year. My rate jumped to $600 month. The worst part was I couldn't get him off my policy even with a suspended license because he was still living at home. When he did get it back, he needed an SR-22.

The only way I got him off my policy is when he was no longer living with me. He moved, had his own life and different address. I'm happy to say he runs his own business and is a very good driver. The other option was for him to buy a car and get his own insurance ( that was impossible because his license was suspended)

My lesson learned: there is no way any of my kids will get attached to my insurance or anything else that could/can ruin my credit history. The same goes for joint bank accounts and credit cards ( I had an awful experience with that as well). I made my youngest get his own insurance. He got his license at 22. He has his own bank account and credit card. I find having skin in the game makes him more responsible.

[sugarwood]

I called about a Boxster for sale, and the seller said his kid turning 16 were going to make his rates go from $500/yr to $5000/yr. Hence the sale.

[sugarwood]

Originally Posted by Porsche-O-Phile

That's one of the most important life lessons you can get across to kids before they're 18 yet so few people seem willing to take a common-sense approach to it the way my dad did. I worked a P/T job after school and on weekends and paid for the stuff I wanted that way, or I walked. Why is this so hard for people to understand?

What you don't get is that parents want their kids to go to Ivy league schools. The kids are studying like crazy, not working in grocery stores. And, they are playing tons of sports for sports scholarships.

[KFC911]

Originally Posted by sugarwood

What you don't get is that parents want their kids to go to Ivy league schools. The kids are studying like crazy, not working in grocery stores. And, they are playing tons of sports for sports scholarships.

He gets that...nothing has changed over the years . I had the test scores to raise the average at even the best schools....different perspective though.

Sidetrack...I once had a kid interested in buying my Supra Turbo ...told him and his dad that I would not sell it to him

[jhynesrockmtn]

Depends a lot on gender, boys are much more expensive, at least in WA state

[KNS]

Originally Posted by sugarwood

What you don't get is that parents want their kids to go to Ivy league schools. The kids are studying like crazy, not working in grocery stores. And, they are playing tons of sports for sports scholarships.

We put our daughter on our insurance but she did the driving school and good student discounts to get her rates as low as possible (State Farm wants to see grades).

Our daughter is off to college in a few months, the majority of it paid for through academic scholarships that she worked/studied her butt off to get. She is an IB (inter baccalaureate) and AP high school grad at a time when academic scholarships are few and far between.

She did have a part time job last summer but during the school year it would have been impossible for her to work in addition to the studying and testing required for IB, soccer team and soccer practice, high school band (as well as volunteer time, etc). Where is she going to work an after school job in there..?

In the end she saved us/herself tens of thousands of dollars by skipping the after school job and focusing on her college goals.

[Radioactive]

Our solution was to get a cheap car that has liability only, the rate is about the same as the other cars with full coverage.

I fully expected him to crash the first car, but he turned out to be a slow and cautious driver. But I have another one starting later this year and I might not be so lucky on the second one.

[aigel]

Lots of good input to ponder guys. I guess it is time to call my agent and discuss as it seems to vary by state and insurance agency. It may make a big difference on what to buy for dad next depending if you can put one primary car for the kid or not. On Hagerty BTW, you may be SOL with a teen driver. They may not insure you at all.

POP - not sure about that advice, haha - do you have kids? I feel a bit like getting unsolicited marriage counseling and birth control advice from a catholic priest. Sometimes you are such a grumpy old fart, and I think you aren't even that old!

IMHO nowadays you have to be glad if your kid actually still wants to drive. I know many that don't and rather have their parents shuttle them around.

Thanks again everyone!

G

[sugarwood]

Originally Posted by KNS

In the end she saved us/herself tens of thousands of dollars by skipping the after school job and focusing on her college goals.

Exactly. Having your teen working some brain dead job for $7/hr (while other kids engage in research, building a mobile app, or interning is a textbook case of "penny wise, pound foolish"

As for college screening for wealthy benefactors, an after school job correlates to lower family income. The poor need to work, while the wealthy engage in self-enrichment.

But, to each their own.

[KFC911]

Originally Posted by sugarwood

Exactly. Having your teen working some brain dead job for $7/hr (while other kids engage in research, building a mobile app, or interning is a textbook case of "penny wise, pound foolish"

.....

But, to each their own.

Very few teens fall into the latter category .
Most successful folks I know were taught the value of hard work at an early age however.
I worked for 2.35 per hour when I was 16 during the summer....taught me more than my computer science degree did, and I was quite gifted and successful in that field. I have younger relatives who've done the Harvard/Stanford path, etc. and I'm sure they share my perspective....YMMV.