Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About New Driver Car Insurance Rates

June 4, 2013

William asks…

How would i go about renting a car in canada?

How would i go about renting a car in canada?
How old do you have to be? does 22 pass?

Buddies and I looking to fly up to canada next summer but trying to get a rough guidline on how we would go about renting a car to get around banff area in.

Administrator answers:

A lot of places will rent to a 22 year old, but there’ll be extra costs involved for that. You’ll also need a security deposit, which can be covered with a credit card.

You’ll also be offered really expensive daily collision insurance, and you might want to consider it. You don’t have to buy the coverage, but if you don’t you agree that you are 100% personally responsible for any and all damage that happens to the car while you rent it – regardless of what the damage is or how it was caused. If you buy the collision insurance, however, it’s all their problem and you walk away.

Nobody can tell you what sort of prices you’ll be looking at except the rental companies. Rates vary between companies, what day of what month it is, how many drivers, how many km’s (metric miles) and a few other things. There are just too many variables for anyone here to guess.

Charles asks…

Will my car insurance go up if this happens?

In NY, if you are under 18 and drive past 9pm you can have your license revoked for 90 days.

If you are under 18 and drive past 9pm, get your license revoked, will it drive up the cost of insurance? I have State Farm insurance.

Administrator answers:

It will not cause your rates to increase. It will cause you to be an excluded driver which means you will not be covered in the event of a claim.

Betty asks…

I was at fault in a car accident, there was minimal damage and I want to pay out of my pocket for damages?

I ran a red light today, the other car barely hit my back bumper. If damages are minimal I would like to pay out of my pocket instead of going through my insurance so my rates don’t skyrocket. What sort of things should I do to insure I don’t get sued or held liable for anything in the future?

Administrator answers:

I understand that you are worried about your insurance going up but it is best to go through them. If insurance information was exchanged and they reported to the accident to theirs, it is in your best interest to do the same.

The statue for a lawsuit in a car accident is typically two years, but it can variety from state to state. If it does turn out that the other driver does sue you, your insurance company will have an attorney to work the case.

Keep in mind, there is a reason that you have insurance and it is for these incidences.

Good Luck!

Daniel asks…

What auto insurance would give the cheapiest rate?

3 cars, 4 drivers(1 is 22yrs old, 1 is 16yrs old)
I checked Geico the gave me $293/mo
Any others?

Administrator answers:

It all depends,i would go to progressive.com and fill out there online form,if they dont have the cheapist insurance rates,they will tell you who does!!

Paul asks…

Is there a reason to notify my auto insurance company of a student driver?

It will raise the crap outta my rates and since every licensed driver is insured and the insurance follows the car, not the driver, is there a reason? My young learner is 15 and has a learners permit. Right now the lessons have just been in the country, so no worries yet, but shes getting better and will be ready to get out among the other idiots on the road soon.
Thanks

Administrator answers:

Yep, there’s a reason. That reason is the misrepresentation / non-disclosure clause in your policy agreement (every policy has one), and it’s serious stuff.

An insurance policy is a legal agreement, and wilful misrepresentation voids a legal agreement. Your policy is no exception, I assure you. Your policy also contains a clause that you’ll notify the insurer of any material change to the contract, and a new driver in the house is one of those material changes. If you ‘forget’ to let them know about this driver, they’ll think you did so to avoid paying the increased premiums. And they’ll be right.

Here’s how it always happens. You, knowing that the insurer will raise your rates, decide not to tell them about the newly-licenced driver just yet. Maybe you want to wait until she starts really driving, or maybe you figure the renewal date is the better time. You might even use that semi-technical assumption stuff like you did in your first sentence, figuring there’s some loop hole that you found that they haven’t seen before.

Then, unexpectedly and at the worst time possible (because accidents always happen at the worst time possible), you get that call. You lent her the vehicle, and it’s just been turned into a smoking ruin at some intersection. You call the insurer to put in the claim, hoping they won’t make a big deal out of the fact that the driver was someone they hadn’t heard of before. But they do make a big deal out of it, because they looked up her address and how long she’s been licenced (yes they can do that) and think you were deliberately hiding her from them to avoid the premium increase.

Next thing you know, you get a registered letter delivered to your house. It says that not only are they cancelling your contract with them immediately, they’re denying coverage for the accident for reasons of non-disclosure / misrepresentation of material information. And they’ll get away with it, because their team of expensive lawyers closed all the loop holes many years ago. Now you’re stuck paying all the repair & medical bills yourself, hoping against hope that no lawsuits arise from this one little incident.

I worked in auto insurance for 15 years, and I can’t tell you how many times I’ve seen that very thing happen to people. I’ve even seen people pay 10 to 20 thousand to lawyers and sue the broker, insurer and anyone else they can think of for not explaining that to them properly, but I’ve never seen anyone win.

Do you really want to be one of those people who finds out the hard way? Your call, but at least now you know.

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