Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About New Driver Car Insurance Cost

February 19, 2013

Nancy asks…

what exactly is broad form coverage for car insurance?

my insurance ran out. i dont really need a full coverage on car insurance since my car is old. I have a lifetime medical insurance. Im a pretty confident driver.

Administrator answers:

Be V ERY careful buying this kind of insurance.

“broad form auto insurance”:

This type of auto insurance is usually dirt cheap, as it only provides liability insurance (uninsured motorist coverage and personal injury protection can be added), and eliminates the variable of risk for the insurer by excluding every human being on the planet, other than the named insured, for coverage.

Also, there is no option to purchase physical damage coverage, which keeps the costs down.

It may also be referred to as “Broadform Named Operator Coverage.” The “Named Operator” portion is the crux of the broad form auto liability policy.

Essentially, this is a policy for the individual who lives alone and NEVER allows anyone else to drive their car.

Here are some bullets of note on this type of policy:

- Coverage is only provided for named insured – no one else is covered if they borrow your car – keep in mind you can still be sued for damages resulting from someone else driving your car.

- It is a liability-only policy: No coverage is afforded for physical damage to the vehicle.

- You can drive any car you own or have permission to use. Whether it’s 1 or 20 different cars, it doesn’t matter, and the cars don’t even have to be listed on the policy. There is no physical damage coverage so the insurer doesn’t care what car you are in…as long as you didn’t “borrow” a vehicle without permission.

- Broad form coverage is secondary for insurance claims purposes if you borrow someone else’s ride that has existing coverage.

Example: You cause an accident that injures somebody while driving a borrowed car (that is listed on another policy). The car owner’s liability limits would have to be exhausted before the broad form policy will cough up any money.

- We are talking cars only: No coverage while on a motorcycle or operating a vehicle for business use, which would require a commercial vehicle insurance policy.

Tread Cautiously

Trying to purchase this policy to save money, when you are not the only driver of a vehicle, is a huge mistake and will not work out for you.

Many claims from this type of policy end up in court, as it is almost inevitable that a person not listed on the policy (but actually drives the car) will get into an accident if you have it long enough. You’ve been warned.

Another thing to consider is that this type of coverage can be confused for broad form comprehensive coverage for an automobile, which is on the opposite end of the spectrum from the policy described in this post.

Broad form comprehensive coverage actually “broadens” the types of losses you are insured against.

Typically, comprehensive auto insurance coverage limits the types of damage you are covered against to some pretty basic items. Broad form “comp” insures you against just about anything that can damage your car.

Note: The broad form named operator policy can be difficult to understand and lends itself to potential abuse (a cheaper policy), but can land you in hot water financially if someone else operates your vehicle and causes bodily injury or property damage to someone else.

This policy form is not available in every state. In fact, some states that offer it are currently reviewing the policy forms to determine if it satisfies the legal requirement for a state mandatory liability policy.

Why? It’s VERY restrictive in some respects (and very unrestrictive in others). In fact, it can be referred to as a “restrictive form” policy by insurance professionals.

You will likely never hear it called by that name, as it’s difficult to sell an insurance policy by using terms like “restrictive” when you’re referring to coverage!

Be sure to speak to a local independent insurance agent if you have more questions regarding either of these types of car insurance.

James asks…

What is the punishment for driving without a license in IL?

I have no drivers license and got a ticket for running a red light. I do have car insurance but i have to go to court. I was just wondering what I have to expect. Thanks for your time!

Administrator answers:

I am assuming you are an adult? Also, did you not have one (lapsed) or was it suspended?

I’ll give you worst case scenario, suspended license:

Fines and court costs in excess of $500
License suspension up to 180 days from date original suspension ends
30 days in jail (not likely – community service more probable)
Insurance surcharge of up to 100%

Again, that’s worst case based on a suspended license and assumes a pretty bad record. If this is a first offense it should be less. I also did not include the red-light violation.

Charles asks…

Can I add someone on my car insurance for 15 days?

I’m going on holiday at the end of the month for 10 days and was just wondering if I could add someone on my car insurance for 10 days? or what’s the least amount of days in can?
I’m the main driver on the policy but my dad is the 2nd driver, but I was going to see how much it would cost to put my brother on my insurance just for the time in on holiday?

Administrator answers:

Most state insurance policies have provisions for “permissive” drivers, however, under age drivers may be another matter depending on which state you live. Your best bet would be to ask your agent or broker and get your answer from the “horses mouth.” r

Jenny asks…

Chances of Getting Caught Having No Car Insurance?

I’m an 18 year old new driver, so car insurance would cost a ton for me…I just can’t afford it. I

As long as you drive correctly and don’t do anything stupid, what are the chances you’ll actually get caught for having no car insurance?

And what happens if you do get caught without car insurance? Thanks.

Administrator answers:

100% you can’t register your vehicle or get tags without an insurance binder number if you get insurance and then drop it to scam your tags and registration the State will know within a month or two because insurance companies are required to report your insurance status to the DMV/MVA with the advent of computers the State may know in days. When they find out you’ll get a letter demanding you return your tags and pay a huge fine the longer you ignore them the more the fine will grow. Once you have been notified if you are caught driving they will arrest you and impound your vehicle and suspend your license.

If you think insurance is expensive wait until you get caught without it if you have an accident any injuries or damage you cause will totally be your responsibility, can you afford a $50,000 medical bill and another $20,000 to replace the car you total? The victims insurance will pay their customer because you were uninsured but then the insurance company will come after you this could mean wage garnishment and liquidation of any real assets you have or will get in the foreseeable future. Some states require the driver to carry proof of insurance and to provide this proof in any traffic stop. This means a cop pulls you over for a tail light out and the next thing you know you are being ticketed or arrested and your vehicle is being impounded they won’t care if you have to work or any other sob story.

Find a way to get insured or sell your car and get a bus pass.

Daniel asks…

Does car insurance cost more for old people?

I’m doing a topic in my GCSE’s and i have to gather information on weather old people should be allowed to drive… so i would apreciate it if you would comment on that as well. But what i wanted to know was weather car insurance costs more for people over 65 (because thats the age you can retire and get a pension) or for people under 65.

Administrator answers:

Hell no. Don’t know where the dweeb got the answer of Yes. National stats for the Us show that the cheapest is for for drivers 40-65 then drivers 25-39, followed by drivers 66-99, then, 18-24 yr ikds, and the most epensive by far 14-17.

66% of all fatalities in automobiles involve a driver undr 18! This is shocking, and is where insurance companies make most of there money

I’m 45 good record no accidents my full coverage is under $800 a year or a 2007 car..

My dad is 74, a good record no accidents in 30 yrs+ for a 2005 car he pays $475 year

my daughter is 21 good record, no accidents, she too has a 2005 car and pays $1,200 a year!

My sone is just 18, he is getting his own insurance, he was on our policy , and paid us the differance, ($60 mo liability alone). He will pay about $800 for a 1989 car! (20 yrs old car!), for just liability, full coverage (not wise on such an old car) would be over $1,500.

And to cap it off: my grandfather who is 96, still drives, accident free for 12 yrs, drives a 2002 car , and for full coverage pays only $360 a year. So all I know is by asking by family, and this is what I got for figures.

Maria asks…

How much would a car insurance cost?

I am living in NYC and I’m almost 21 and im planning to get a car pretty soon and by that time i will be 21 but i just got my drivers license. And the car i’ll be getting will probably be a 2006 honda civic. So, how much would a car insurance cost me per month?
Your help will be appreciated thanks :)

Administrator answers:

No one here has the slightest idea of how much some insurance company may charge you for their insurance. You have to ask an insurance company.

Betty asks…

How much does average car insurance cost per month uk?

approximately how much would car insurance cost on a car worth £1000 for a 17year old who lives in a cul de sac with a garage.

Administrator answers:

For a 17 year old new driver expect premiums in the £3 – £6k p.a. Region, so work out a monthly figure from there.

For an alternative answer, that’ll get you an actual real figure rather than guesses is to ask an insurance company. The value of the car is almost immaterial, incidentally.

Joseph asks…

3 examples of how to decrease the cost of car insurance for younger drivers?

3 examples of how to decrease the cost of car insurance for younger drivers?

Administrator answers:

1. Take driving classes through a certified program.
2. Take road lessons from a certified instructor.
3. Get good grades (My son’s school offers a 10% good student discount.)

Michael asks…

How much would insurance cost for a 16 Y/O Girl with a 1997 Nissan Maxima GLE?

I’m buying a Maxima and I’m turning 17 in February. I plan on getting the car on the road next month and I have a 10% discount from my driving school for taking drivers ed. How much would insurance cost (roughly) per month for a 16 year old girl with a 1997 Nissan Maxima GLE?

Administrator answers:

Depends on a lot of factors.
Your driving record, where you live, etc. Etc. Etc.

It would probably not make sense to get collision since the car has very little residual value.

If you’re records clean and you don’t live in a big city and you get liability (not collision) and everything else that’s required you should be able to get covered for $1000 – $1200 per year or $100 – $120 per month.
If you can get on your parents policy that would lower the cost.
Their name would have to be on the car’s title.

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