Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About New Driver Car Insurance Rates

March 16, 2013

Paul asks…

Does a teen have to pay extra car insurance if they get their own car instead of using their parents’?

I’m 17 and have a license. We currently pay something like $800 / year for car insurance which allows me to use both my mom’s and my dad’s cars. If I got my own car, would our rate stay at $800 / year or would it increase because of me being the primary driver / having an additional car to drive / etc?
Wow Steve that really is expensive! I also heard that rates are disproportionately higher for teenage guys than for girls.

Administrator answers:

Steve has NO idea what he’s talking about. An added car means added premium. As long as you don’t get a sporty car your rates shouldn’t jump too high. If you are already on your parents policy then you are already rated, unless they haven’t disclosed you as a driver, which really wouldn’t be the right thing to do.

My 18 yr old son drives a 2011 dodge charger and he pays us about $130 per month for his portion of the insurance. Gets a discount for good grades, no tickets/accidents.

Donna asks…

Would buying more cars lowered the insurance rate ?

I and my parents have a clean record. I am car lover regardless of Which brand it is Or so on.

Administrator answers:

The rate per car may be reduced by the application of a multi-car discount but the total insurance premium paid will increase. The effect of the multi-car discount can be overwhelmed by the increase in premium if a youthful operator rating is adjusted from an occasional operator to a principal operator.

In operation it could work this way. If your parents have one car you would be rated as an occasional operator. If they bought another car they would they would get a multi-car discount on each car and still have you listed as an occasional operator. So while the rate per car is lower they are now insuring two cars so the total cost is higher. If they buy a third car you will automatically be listed as a youthful principal operator because there are 3 cars and 3 drivers. Thus increasing the premiums significantly.

Have your parents talk to their agent before buying an additional car.

James asks…

How can I get car liability insurance without USA drivers’ license?

I am a foreign citizen and we would like to buy a car in San Francisco for a cross country trip. The only problem seems to be the car liability coverage insurance, which is obligatory to have when driving. How the others do, who make such trip? Are there insurance companies offering daily rates, or periodical packages with not American drivers’ license? Car rental places offer liability insurance for 12.99 per day, so I think of something, like that.

Thank you for the responses.


Administrator answers:

Where is the car going to be registered? You can’t buy a car in the US, and register and insure it to a foreign address. Are you actually resident in San Francisco? There are exceptions for military personnel stationed in the US, but it is a little different for a tourist.

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