When to move your kid to their own car insurance?

[scagnt83]

So my 19 year old daughter has racked up a few tickets, along with a suspended license. Supposedly the suspension will be cleared when she sends info on paying the ticket... she paid on time but failed to give the DMV the info so they suspended it and I found out via my insurance agent.

So now its more expensive. My agent (SF guy who is fairly young but persistent so I gave him a chance), says that it might make sense for me to try a different carrier for just her, that is more friendly to higher risk drivers.

He also said it would start "her own history" for having car insurance and would help her out long term.

So I have 3 questions:
1. Is there a significant difference for her long term if she is on her own policy vs. being a part of mine?

2. Does it make sense to move her off of mine?

3. When is the "right" time to do something like that with a child? I still own the car if that matters, but I could transfer it to her easy enough.

 

[adjusterjack]

In case I haven't revealed this previously I am a retired claim rep with 35 years in the insurance industry during which I have also been an agent and an underwriter.

Your agent does not make the company's underwriting rules nor does he decide how the company's claims people interpret coverage.

I suspect that your young agent would like to get the high risk driver out of his office to avoid potential profitability issues with the business he writes for his employer.

Here's my advice, based on many years of experience in all three areas:

As long as she is a member of your household, continue to own the car and cover her with your own insurance. You may have to tough it out for a couple of years of surcharges but it's the only way you'll be fully protected from liability lawsuits.

You're at least getting the multi-car discount, and the multi-policy discount if you also have your HO with the same company. That cuts you some slack on the rates.

I owned and insured my daughter's car until she was 23, graduated college, and moved out to take her first full time job. Then I signed the car over to her and she bought her own insurance. There were even a few surcharge years after she rear-ended another car when she was a teenager.

 

[marindependent]

Who owns the Auto?
Where does she Live?
Who pays the Bills?

 

[WinoBlues]

Who owns the Auto?
Where does she Live?
Who pays the Bills?

Him

 

[Al3x Lee]

I was in a similar situation at that age, but my parents didn't love me as much so they kicked me to the curb and told me to figure it out. It was a good life lesson.

Is she still living at home?

 

[scagnt83]

I was in a similar situation at that age, but my parents didn't love me as much so they kicked me to the curb and told me to figure it out. It was a good life lesson.

Is she still living at home?

Full time college student. Home for the summer starting next week. She has 3 more years. (hopefully just 3, lol)

 

[scagnt83]

Who owns the Auto?
Where does she Live?
Who pays the Bills?

All me. College kid who is home during the summer, at least for this year.

 

[scagnt83]

In case I haven't revealed this previously I am a retired claim rep with 35 years in the insurance industry during which I have also been an agent and an underwriter.

Your agent does not make the company's underwriting rules nor does he decide how the company's claims people interpret coverage.

I suspect that your young agent would like to get the high risk driver out of his office to avoid potential profitability issues with the business he writes for his employer.

Here's my advice, based on many years of experience in all three areas:

As long as she is a member of your household, continue to own the car and cover her with your own insurance. You may have to tough it out for a couple of years of surcharges but it's the only way you'll be fully protected from liability lawsuits.

You're at least getting the multi-car discount, and the multi-policy discount if you also have your HO with the same company. That cuts you some slack on the rates.

I owned and insured my daughter's car until she was 23, graduated college, and moved out to take her first full time job. Then I signed the car over to her and she bought her own insurance. There were even a few surcharge years after she rear-ended another car when she was a teenager.

Thanks for the advice Jack. My instinct was to keep her on mine.

Could you explain the liability issues? Out of curiosity, would my umbrella policy cover that?

 

[NY independent]

There are no "high risk" carriers that will treat her well. Your SF agent should know this. Make sure she's listed as a driver on your SF auto policy and keep it on your policy. When the time is ripe for her to move onto her own policy, she will be able to prove "prior insurance" (huge these days). Make sure you buy an umbrella policy if you don't already have one. The right time to move her out on her own is when she can pay for her own insurance or, if SF non-renews because of her, you might not have any other option.

 

[marindependent]

He also said it would start "her own history" for having car insurance and would help her out long term.

Do not understand this statement, she has insurance now - on your policy?

My agent ...says that it might make sense for me to try a different carrier

Than let him run the numbers for you and show you.

2. Does it make sense to move her off of mine?

Two schools of thoughts on this. The best one is typically to wait till they have their own job, have fulled moved out, and you can transfer the title to her name.