My kids (twin boys aged 17, seniors in HS) got their driver’s licenses last summer. Since then we haven’t been able to let them drive, since to put them on our insurance would cost $5400 :eek: EACH, per year, and (here’s the kicker) they’d have to stay on our policy the entire time they’re in college. Getting them their own policy would cost even more, $6400 each (that would be in “assigned risk”). The costs of their chosen colleges is already draining our finances to the (almost) breaking point. It didn’t cost my parents anywhere near this (even adjusting for inflation) to put me on their policy in the mid 1980s.
Any suggestions (other than don’t let them drive until they get out of college)? One of the boys is taking classes at a community college over the summer and it’s really inconvenient to drive him back and forth…
Is it $5400 to put them on your policy so they can drive your new, fairly expensive car with full coverage, or is it $5400 for them to drive their own, used inexpensive car with liability coverage only? Because the car they are driving and the coverage it has will make a difference.
That was my thought too; that might well be the cost for liability, comp and collision on a new or late model sporty-type car for 17 year old boys in Nassau County, NY.
When my parents put me on their insurance, it was liability only on a total beater that was almost as old as I was. It was still expensive- as in a couple hundred dollars a month more, and that was in 1989-1990.
A fair question. This would be with them driving our cars, a 2003 Honda Odyssey and a 2004 Infinity G35. Together they’re probably worth under $15k. Actually they’d only be driving the Honda, since the G35 is a stick and I haven’t taught them how to drive it.
We actually have an old car set aside (and the potential to get another cheap from a family member) for them but haven’t bothered insuring it yet because of the above costs. I don’t think you can just add them to a single car on the policy, it’s all or nothing (someone feel free to correct me if this is wrong).
This is with GEICO, a company that prides itself on low rates.
Start checking around. This happened when our kids started to drive, we switched a couple of times and found better rates. If you have a low deductible you can raise that and improve the rate. We still own their cars to maintain the insurance, it was costing them a fortune before and it’s still much less than if they had their own policies.
Geico sucks moose balls when it comes to pricing, and they have the charming habit of boosting your premium when you are the person someone else hits in an accident and were not even in the damned car. [mrAru’s car got nailed while legally parked in his assigned space when we lived in an apartment building.] To be honest, we have State Farm, and it is even cheaper than Geico here.
I would actually heartily recommend getting damned near any company but Geico for car insurance.
I would look around on that. My daughter was like $50 more to add her to our policy and that was driving a Miata! Actually the Miata was the cheapest car (of our vehicles) to put her on as they didn’t consider it a sports car and it is a 1994. But she is a girl (cheaper) and a good student (discount) AND she took the test/training that our insurance had to get another discount. Basically it paralleled the driving course and she had to keep records of her drive and then talk with the agent prior to getting her insurance.
The Miata is my car and I am just allowing her to drive it. She has now been driving about 18 months and so far no problems.
Different insurance carriers price these risks differently. If it was to add my 17 year old as a driver on my wife’s and my car, with full coverage, it would have been close to the amount that you mentioned. But I bought a 10 year old 4 cylinder import sedan, and only have liability coverage on it, and he is listed as the primary driver of that car. The annual premium is about $1,800.
Look into the discounts. We got a good student discount, and a significant one because she went to driving school (the discount was more than we paid for the school. Plus I think the school meant she didn’t have to take a driving test). That said, I don’t think our increase was anything near yours.
Yes, definitely shop around. My kids got big discounts when they got licenses. And they were girls, which helped, and they were one at a time - the older one was off to college with no car before the younger one started driving. You’re getting a double hit.
How much do you pay, btw? Growing up in Queens, I’d not be surprised to find that Nassau County is pretty expensive relative to most of the rest of the country.
I had an at-fault fender-bender accident with GEICO and my rate didn’t go up. Buying a 2013 car to replace a 1999 car? Rate doubled. Mind you, I’ve only had the new car for a couple months so I don’t know how quickly the rate will improve.
Perhaps OT, but this caught my eye. (Sorry.) If you are financially strapped due to children’s college expenses, then you are doing something wrong. First of all, both should attend a community college for a couple years to get their basic classes out of the way, and then they should transfer the credits to a college you can afford (not “one of their choosing”). Secondly, they should work during their college years to help pay for expenses. Lastly, saving for your retirement is way more important than their college education, so make sure any assistance you’re providing them is not eating in to your retirement funds.
I possibly exaggerated there a bit, we can afford to send them to the colleges they’ve chosen without having to modify our day-to-day living expenses, but it doesn’t leave us much in the way of extra cash flow (our retirement accounts are still being funded, no worries there).