Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About New Driver Car Insurance Rates

June 5, 2013

Carol asks…

In Virginia, is it illegal to drive without insurance when the car you’re driving has one?

I have a license, and I don’t like the idea of adding more cost to the insurance bill of my parents. They have their cars covered by insurance, but what if I chose to drive one of them without having my own insurance? Is it illegal in VA?

Administrator answers:

The insurance is purchased by the owner of the car. The insurance rates are set by who is declared as a licensed driver. Yes, the rates will go up when you are declared as a driver. If you are not declared as a driver, if you have an accident, their insurance will not cover the accident. (Plus, the company will likely drop them for future coverage.)

If you are caught by the police, their driver’s licenses and plates will be suspended until they pay $500 and show proof of insurance paid for three years, plus a reinstatement fee.

This is not a joke. Covering a young driver is expensive. You don’t get coverage for free.

If you cause an accident, your parents will pay for all the damage to all the cars as well as any medical bills. You might think that you will never cause an accident, but you will be surprised to find out how cops and courts assign blame for accidents to new drivers.

Daniel asks…

How many college credits do I need to keep my car insurance with my parents?

I have Hartford insurance! HELP!! Or at least point me in the right direction!!

Thanks!

Administrator answers:

For most insurance companies, as long as you are listed as a student in college, and a GPA of 3.0 or higher, the amount of credits doesn’t matter.

What does matter, is your age. Most companies will change your ‘class’ from underage driver to regular rate when you hit a certain age. 21 for females, and 25 for male.

Maria asks…

Is it good to inform auto insurance company about my license expiry?

My license has just expired and I am working on getting it renewed. It will be a couple of weeks before I can submit the documents that my state DMV needs and get my license renewed. In the mean time, should I inform my auto insurance company about the change in my license status?
- In what I learn – when there is a claim, insurance company doesn’t get into license status – so there is no need to worry about it (but the insurance company can use it to their advantage if they know about the expired status). So I wonder there is no benefit in letting the insurance company know about my expired status. Is this correct?

Administrator answers:

In my opinion you have no obligation to inform the insurance company you license has expired. You do have an obligation within your state to not drive any auto until the license is reissued and to keep your car insured or surrender the tags and registration. If you intend to allow another driver to drive your car for any reason you must list the person as a permitted driver. Your insurance company can be expected to immediately cancel your policy once they learn you no longer hold a valid license. If you lose your insurance in this fashion the rates can be expected to be much higher when you re-establish coverage. Good lock.

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