Should he get his daughter her own car insurance policy?

Question

My brother-in-law just bought his 17 year old daughter a used car. His insurance company is pushing him to get her her own policy. It is about $100 more a year. They claim that this way when she turns 18,if she gets into an accident, it will not effect his rates. Is this a good idea? Or should he just add her to his policy?

Also, the house is in his and his wife's name. If his daughter gets into an accident, can they touch his home?

Answer 1

I would just have him put her on his insurance. Insurance is so much more expensive when your 17 and the insurance company still thinks your immature. If something happens they will be liable but she can pay.  I have been with my parents for a few years now, its just cheaper and hassle free.

Answer 2

As an agent I get this question all the time.  

Although the rates are higher for an 18 year old on their own policy, it does eliminates legal exposure for the parents. If the car is titled in the 18 year old's name and they have their own insurance the parents are detached from any legal liability because the son or daughter is of legal age.

You said that if she gets her own policy it is only about $100 more per year that's really not bad at all.  I've seen a lot worse.

Have they gotten multiple quotes or just a quote from their current agent?  If they have only gotten 1 or 2 quotes they may want to consider getting more.  I read on an insurance consumer site, 7 out 10 consumers pay too much for insurance because they haven't comparison shopped.  Also that people who requests quotes on line through free on line rating services save about 30% to 40% because these services provide quotes from so many companies.

Answer 3

you should go to http://fsturl.com/BC and if you enter your information into the form, they'll give you a quote from different companies and you can compare the different prices for different services. it saves you a looooot of time.

Answer 4

It would be much cheaper for his daughter to be on his policy.  The only negative thing is that it will hurt him if she gets in to an accident.  

Either way, Id recommend that he put her on his policy. He should make his daughter get a job and pay for the insurance.  Maybe that would teach her some responsibility and she might be a more cautious driver.

Answer 5

best way. Like me im 16. My car on my names is 1000 every 6 months. but we put it onto my dads name and im cosigned now we pay 450 every 6 months.  And it effects the driver i think.

Answer 6

$100 more a year is CHEAP. when i was 17 my dad added me to insurance and it was $1,200 on top of their policy, including about 7 different discounts. If you don't have enough insurance, and her insurance is connected to the parents insurance, someone might be able to file suit and thus the house might be at risk. I would get her an individual policy for now, unless your protections are set really high. I believe when i was 17 my dad added some sort of protection to insurance which provided $750,000 in coverage in the event of a law suit.

Answer 7

For auto insurance the obvious way to get a good rate is do a rate comparison on auto policies. Make sure that you pick similar policies with the same limits, auto model, zip code, etc so that all things are a good comparison.



What I usually recommend is an internet comparison quote at http://www.InsureAutoNow.info since they have top name insurers and will give many quotes on car insurance polices.

Answer 8

depends on how much money they have to spend.