Insuring Teenage Drivers

[Mike]

OUR SON COSTS US $2000 A YEAR TO INSURE! OUR SON COSTS US $2000 A YEAR TO INSURE! OUR SON COSTS US $2000 A YEAR TO INSURE!

I can't believe it. We picked up a 2004, and the fact that he has access to our cars and the cost of his means we'll be paying an extra $1000 every 6 months. Their toys get more expensive as they've gotten older, but this is ridiculous! He'll be paying what he can, but he can't pay that much. And he's taking some classes away from his high school at the community college, so he needs his own transportation.

Unbelievable! :help

 

[duari91]

OUR SON COSTS US $2000 A YEAR TO INSURE! OUR SON COSTS US $2000 A YEAR TO INSURE! OUR SON COSTS US $2000 A YEAR TO INSURE!

I can't believe it. We picked up a 2004, and the fact that he has access to our cars and the cost of his means we'll be paying an extra $1000 every 6 months. Their toys get more expensive as they've gotten older, but this is ridiculous! He'll be paying what he can, but he can't pay that much. And he's taking some classes away from his high school at the community college, so he needs his own transportation.

Unbelievable! :help

Wow Mike, that is a rip off. Have you contacted any other insurance companies? Maybe go around looking for some deals. I am sure some insurance agencies would give you quite a cut if you jump over to them.

How old is your son? Do they really view him as THAT big of a liability? Has he gotten any tickets? Accidents?

I am 21, and my insurance costs about 860 a YEAR in California. I havent gotten any tickets, or gotten in any accidents. Even when I started driving, I think my insurance was still half of 2000 at least.

 

[reba]

 

[Charles Spurgeon]

I owned a 1999 V6 mustang early on (I'm 25) and it was $156 a month to insure full coverage in 2005-2006. :eeeekkk It would have been around $205 a month if it was a GT.

 

[Mike]

Michigan is a No-Fault state, and we have the only completely uncapped lifetime disability in the U.S. That means if someone gets seriously injured, most states have a defined period of time someone will receive disability benefits, but Michigan demands unlimited damages for an unlimited amount of time.

Whether that's right or wrong, Michigan has some of the highest auto insurance rates in the country. It was frustrating before today. Now, I'm ready to camp out in front of our legislatures' front doors!

He got his license a few weeks ago, but he'll be 17 in a few months. He was about the last of his friends to get one. No one in this family has been in an accident in at least 15 years, from my recollection. This is just riddidly! He has a graduating license until he's 18, which means he can't drive past 10pm, and he can't have more than 1 friend in the car with him (non-family). He's a very good student. He'll be in 11th grade, and he's taking college credit classes next year, so he needs a car to get around to school.

$2000 extra a year to insure a teenage driver!!... with a limited license!!

 

[reba]

Government in business is a good thing

 

[alexlove]

my insurance is 100$ a month.
i pay for it. my car is a Toyota corolla 98

 

[Mike]

I'm drudging up a thread that's been quiet for a while, because I just saw this article, and I want to let everyone know what a hose-job we're getting in Michigan.

http://www.mlive.com/business/index.ssf/2012/07/michigan_has_highest_car_insur.html

Michigan spends the most per household, per year on auto insurance in the entire country. We also dedicate the highest percentage of our income on it. Michiganders spend on average over 8% of their income on auto insurance! The next highest is Mississippi who spends just over 5%.

In Michigan, we average over $4,000 annually per household for auto insurance. Our neighboring states, Ohio, Indiana & Illinois? Between $1,100 & $1,300!!

So if anyone thought I was getting hosed by being charged $1000 per six months for our son to drive his used car, they're right - I'm hosed by the state of Michigan that has the most liberal life-time medical policy in the union.

Oh, these numbers made me steam!!

 

[jasoncran]

move to florida. its cheaper and theres' plenty of michaganders here.

we too are no-fault state. but man i thought i paid alot.

 

[stovebolts]

Mike,

Call it what you will... but we simply didn't tell our insurance company about our teens and all the cars stayed in our name until they moved out and could afford their own insurance... and I don't plan on letting them know when my son gets his permit either No fault, and it doesn't matter who's driving... right? :eeeekkk

Mind you, this coming from a household that "Has" to insure a car to drive it 3 blocks on dirt road to sit for 8 months...

 

[reba]

Isn't it wonderful to know the government is there to help you?

We who are citizens of the USA should be able to buy insurance any where correct?

Nope the government knows what is better for you then you do...

 

[tcross]

My son is at that point where he will be getting his driver's license soon. I can only imagine what it will do to our insurance. Insurance companies have a way of socking it to us one way or another.

 

[WIP]

I don't get my auto insurance through the government. Why are we blaming the state for auto insurance costs? What am I missing?

We insure a 2009 Ford F150 Lariat, 2007 Ford expedition, 1997 Pontiac Bonneville, and a 1992 2500 GMC. Five drivers: 72-year old female, 53-year old male, 52-year old female, 18-year old female, and a 16-year old female.

The 2009 and 2007 are the only ones carrying full coverage with $500 ded. on collision and $250 ded. on comprehensive.

We have a totally clean driving record with no accidents or injuries.

Total annual cost = $1,838.00 after applied discounts.

 

[stovebolts]

Wip,

States regulate what type of insurance you MUST carry... That's why 1 teenage kid alone costs $2,000 annually to insure as a new driver in Michigan. When my son turned 19 and got his own insurance, he was paying $140 a month on his own policy, and that was with a clean record. That's why with my son and my daughter, we never told the insurance company they were driving or our rates would have been right there with Mikes. Again, some may disagree with this, oh well. With no Fault, the car is insured, not the driver so it wouldn't have mattered if I got in a wreck driving the car or my kid. That's the way I see it anyway.

No fault is stupid in my opinon. It means that nobody is as fault and you fix your own car regardless of how it happened. If you feel it was the other guys fault, then you sue his insurance company for your deductible. regardless, unless you hit a deer, your rate ends up going up after an accident, even if it wasn't your fault. Thus, "No Fault".

 

[Sparkey]

Mike,

Call it what you will... but we simply didn't tell our insurance company about our teens and all the cars stayed in our name until they moved out and could afford their own insurance... and I don't plan on letting them know when my son gets his permit either No fault, and it doesn't matter who's driving... right? :eeeekkk

Mind you, this coming from a household that "Has" to insure a car to drive it 3 blocks on dirt road to sit for 8 months...

"Don't ask, don't tell" may seem to work until there is an accident. If any accident happened (even if the teen was not driving) and there were non-disclosed teen drivers you would find out that you were not in fact insured, having voided the terms of your policy.

 

[Sparkey]

High cost isn't the only problem with Michigan Auto Insurance no-fault law.


Dangerous Loophole in Michigan’s Auto No-Fault Insurance Law

Here’s a Ripley’s Believe it or Not: under Michigan No-Fault insurance law, a completely innocent driver may actually be required to pay the medical bills and lost wages of the “at fault†driver who causes an auto accident!

That’s right. You can be completely innocent, be injured in a motor vehicle accident, and then also be required under the Michigan No-Fault law to pay for the medical bills and wage loss of the driver who causes the auto accident.

And, to prove reality is stranger than fiction, if the innocent driver-victim does not pay within 30 days, the Michigan Secretary of State may suspend or revoke his or her driver’s license.

http://www.michiganautolaw.com/auto-lawyers-blog/2012/02/07/dangerous-nofault-law-loophole/

 

[stovebolts]

"Don't ask, don't tell" may seem to work until there is an accident. If any accident happened (even if the teen was not driving) and there were non-disclosed teen drivers you would find out that you were not in fact insured, having voided the terms of your policy.

Actually, a gal slammed on her brakes in a rash decision to get into walmart and my daughter rear ended her. Didn't havean issue with our insurance since I didn't file a claim. Remember, no fault means you pull a claim on your insurance when an accident happens to repair your car. We ended up paying the gals 500 dollar deductible and I pulled the radiator out and to date its zip tied. I'm so shade tree lol

 

[reba]

I don't get my auto insurance through the government. Why are we blaming the state for auto insurance costs? What am I missing?

We insure a 2009 Ford F150 Lariat, 2007 Ford expedition, 1997 Pontiac Bonneville, and a 1992 2500 GMC. Five drivers: 72-year old female, 53-year old male, 52-year old female, 18-year old female, and a 16-year old female.

The 2009 and 2007 are the only ones carrying full coverage with $500 ded. on collision and $250 ded. on comprehensive.

We have a totally clean driving record with no accidents or injuries.

Total annual cost = $1,838.00 after applied discounts.

Can any one buy auto insurance in a state where they find the best rate? if not why not?

 

[WIP]

Wip,

States regulate what type of insurance you MUST carry... That's why 1 teenage kid alone costs $2,000 annually to insure as a new driver in Michigan. When my son turned 19 and got his own insurance, he was paying $140 a month on his own policy, and that was with a clean record. That's why with my son and my daughter, we never told the insurance company they were driving or our rates would have been right there with Mikes. Again, some may disagree with this, oh well. With no Fault, the car is insured, not the driver so it wouldn't have mattered if I got in a wreck driving the car or my kid. That's the way I see it anyway.

No fault is stupid in my opinon. It means that nobody is as fault and you fix your own car regardless of how it happened. If you feel it was the other guys fault, then you sue his insurance company for your deductible. regardless, unless you hit a deer, your rate ends up going up after an accident, even if it wasn't your fault. Thus, "No Fault".

With all due respect and there's a lot, I would question the morality of doing what you're doing or have done. I mean this in the most loving and modest way but isn't this lying? Please don't answer me but give it some thought.

I understand that the state mandates that we carry liability insurance but beyond that I am not aware of any MN state law that determines what the rate will be or what an insurer must charge for the policy. MN is a no-fault state as well. I don't have any teenage sons to insure so I can't speak to what that would have cost me but I am insuring two teenage daughters. To my knowledge many, if not most, insurers are nationwide and not specific to states however I do understand that their rates may vary from state to state or depending on other conditions such as where you live (rural or metropolitan for example).

I buy our insurance online from a nationwide insurer.

 

[Nick]

Wow Mike, that is a rip off. Have you contacted any other insurance companies? Maybe go around looking for some deals. I am sure some insurance agencies would give you quite a cut if you jump over to them.

How old is your son? Do they really view him as THAT big of a liability? Has he gotten any tickets? Accidents?

I am 21, and my insurance costs about 860 a YEAR in California. I havent gotten any tickets, or gotten in any accidents. Even when I started driving, I think my insurance was still half of 2000 at least.

In Australia at least, 16-25 year-old drivers comprise 16% of drivers, but account for 65% of the accidents. Go figure.

It's all about risk. As the risk rises, so does the cost. Unfortunately that's the realisty. As he gets older, he'll become less of a risk to the insurance company, unless he proves to be a bad driver. Which I doubt.