re: Questions on teen drivers insurance

This is where I am confused by my talk with my SF agent last week. I have a newly licensed driver. I have three vehicles under my SF plan with just my wife and I previous. I make the call, tell them the situation that I have a new driver in the house, told them which vehilce he would be primary driver on, and that was it....I asked them if they could shoot me a message regarding rate changes, and was told none. I asked how that could be, and they said that at this time there was no reason to have him rated, and we could just do that at a later date. Does this sound anywhere near accurate? I called back to verify, and was told same thing.

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asked how that could be, and they said that at this time there was no reason to have him rated, and we could just do that at a later date. Does this sound anywhere near accurate? I called back to verify, and was told same thing.

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No this is incorrect 100% and your agent could get terminated for doing that. They are essentially trying to keep you from shopping by not rating
the youthful driver until 1) claim time or 2) UW runs an undisclosed driver report.

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On 1 - When they get their full license.

On 2 - Get the lube ready now and prepare thy anus.

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These are the correct answers.

You can get a good student discount, maybe a drug and alcohol awareness program discount, and a defensive driving course discount. It helps, but when first see the quote with kid added after receiving full license you will think these have not been factored in yet (until you realize they have).

We even once got discounts for being an occasional driver and attending a school without a car over 100 miles away added in, and the increase still felt criminally high.

What they're doing is not rating him until he has an accident. State Farm will cover him and then require him to be added at that point. I work for state farm and yes this can and will work but I personally think it comes with a slight risk, the company could suddenly change how they handle these and customer get screwed. Now I've been with them for 23 years and I can't tell you the number of people that have done this, not under my advice. I had one guy who had 4 sons and 3 daughters and his youngest had an accident at 20 and that's when I found out he had all these other kids. He said he just figured it wasn't worth paying.

So yes it can work, no I wouldn't recommend it.

Newer vehicles that have all the driver assist/ warning system are cheaper on liability than older ones that don't have that stuff. We were were shopping cars getting a model 2 years newer with the safety stuff was $250 per month cheaper on ins.

You have a liability issue in the sense that it will be your word against theirs if the shite hits the fan from a non-renewal or a claim.

Did you speak directly to your agent, or one of their team members?

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1. When does he need to get auto insurance? Is it when he gets Temporary Instruction permit or learner's permit? Does my auto insurance company automatically knows about these permits and puts them on my policy? Mine is up for renewal soon.

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Immediately.

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2. How do I keep the auto insurance down with teen driver added? When on learners and full permit my son will be driving my 20 years old corolla. He won't be touching other cars in my household. Someone told me it is possible to keep rates low by telling the insurance company that my son won't be driver on other cars. Others told me it does not work.

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-Good Grade Discount
- Yes, you can EXCLUDE him as a driver on other vehicles, but that comes with risk - - if he ever does get in wreck while driving one of these vehicles you are screwed.
- Some insurers offer discounts for additional safe driving courses above and beyond what is necessary to get a license.
- Have him get married ( a joke of course, but crazy how that drops rates)

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State Farm will cover him and then require him to be added at that point. I work for state farm and yes this can and will work but I personally think it comes with a slight risk, the company could suddenly change how they handle these and customer get screwed. Now I've been with them for 23 years and I can't tell you the number of people that have done this, not under my advice. I had one guy who had 4 sons and 3 daughters and his youngest had an accident at 20 and that's when I found out he had all these other kids. He said he just figured it wasn't worth paying.

So yes it can work, no I wouldn't recommend it.

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Agents are getting terminated left and right for this kind of behavior. it's non-compliant and unethical. Puts the customer in a terrible position and the company because SF is one of the only companies with permissive use. If you tried that with Geico or Progressive they would deny the claim and non-renew.

There are ways to keep insurance down.

Insure in trusted family members name at different address. That insurance should cover any licensed driver who doesn't live at the same address.

This assumes you are getting them their own car. If it's your car in your name then coverage won't extend unless they are listed.

The workaround is a car insured at an address they don't live at and insured under Grandma's name etc

I'm sure there will be naysayers but I've done it and had a claim filed successfully with teen driver. It worked as expected.

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My son’s is high AF

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Maybe his rates would go down if he wasn't high