Auto insurance dilemma for a minor

[etpm]

I'm gonna try to keep this as anonymous as possible just because of a minor being involved. So here goes. First of all, this is in Washington State. I know a minor, 16 years old, who just bought their first car. They worked hard and saved up, got good grades, bought the car, and now faces an insurance dilemma. To get insurance they apparently need to get it through an adult they live with. I don't know if the adult needs to be a guardian. This person lives with a parent who has lost their license because of drunk driving convictions. So it sounds like that might not be a good way to get insurance, especially since the insurance company will no doubt expect the adult will drive the kid's car. The other option for insurance might be for the kid to get insurance through the other parent, but the kid doesn't live with the other parent. The kid could move and live with the other parent, but the other parent lives on an island and so the kid would need to take a ferry, and drive about 30 miles to attend high school. These trips would cost about 25 bucks each time because of the ferry tickets and gas. The kid would need to live at least 50% of the time with the parent who they get insurance through, so I suppose the kid could live weekends with the island parent and then commute from the island two days a week and 1 day a week to satisfy the insurance company. But insurance companies are notorious for not paying claims and if a claim was not paid it would not be the kid who suffers but the person the kid injured so to be sure I think the kid would need to live on the island 4 days per week to remove all doubt and so would need to spend at least 50 bucks a week commuting. So, does anybody have any suggestions about getting this kid insured?
Thanks,
Eric

 

[RjCorazza]

Sounds like the 16 yo is in a tough spot in more ways than just insurance. Years ago I was able to get my own insurance at 18, but it was extremely expensive. The only option that comes to mind is that some states offer State sponsored insurance, but it would also be extremely expensive.
Perhaps the parental residency requirement is insurance company policy, and not universal across all companies?

 

[jyoutz]

They should just get insurance through the responsible parent and use that address for the policy. Lots of us have/had sons and daughters who live away from home while in college and even after graduation. We did this with my sons for several years until they finished school and were able to establish themselves in their careers. The best way to do this is to have the auto registration under the name of the parent and the child as co-owners and use their address parent’s address for registration. Then the vehicle becomes just another vehicle on the parent’s policy, with the son listed as a driver.

 

[ultrarunner]

Niece attends university in another state and this year took the old family car with her… as a student she is keeping her home state license and no issue with insurance for the car in her dad’s name and her listed… she also got several discounts for good student, etc when she started driving.

I worked with a guy who never put his son as a licensed minor on the policy…

His logic was anyone with permission to drive is backstopped by his policy… of course in the event of a claim he expected cancelation and higher premiums would follow but he rolled the dice and figures he is 12k ahead… son is now in the military so that window closed.

Another option for few is posting a bond in this state… it’s growing because it’s another option if you happen to have 35k in the bank.

I’ve been hit several times and the drivers have no license and no insurance and the police did nothing…

 

[etpm]

The thing with the insurance is it must pay off if the kid gets in an accident. If the kid tries some scheme to get around a higher cost, such as saying they are living with one parent when it can be proved they are not, then the victim in an accident doesn't get paid. Never mind that the kid gets sued or even prosecuted, the victim still wouldn't get paid by the insurance company and this is unacceptable. I'm trying to find an affordable way for a kid with good grades and a job to get insurance despite the kid having an irresponsible parent.
Eric

 

[MossRoad]

Can the adult parent that the minor lives with that has no license purchase an insurance policy for the car and be listed as an excluded driver?

 

[etpm]

Can the adult parent that the minor lives with that has no license purchase an insurance policy for the car and be listed as an excluded driver?

I dunno. I'll ask. Thanks.
Eric

 

[jyoutz]

The thing with the insurance is it must pay off if the kid gets in an accident. If the kid tries some scheme to get around a higher cost, such as saying they are living with one parent when it can be proved they are not, then the victim in an accident doesn't get paid. Never mind that the kid gets sued or even prosecuted, the victim still wouldn't get paid by the insurance company and this is unacceptable. I'm trying to find an affordable way for a kid with good grades and a job to get insurance despite the kid having an irresponsible parent.
Eric

This is why I said that the car must be registered in both the parent’s and kid’s name. The main policy holder is the parent, but the kid is listed as a driver. In fact, anyone who is given permission to drive the vehicle by the owner/policy holder is insured in the event of a claim. But the policy holder must file the claim.

 

[mikester]

Insurance companies are scam artists...especially in Ontario Canada.

My advice is to get your kids on their own insurance asap.

According to my insurers, kids under our policies don't accumulate any "insured" driving experience and all you end up doing is delaying the inevitable high premiums for several years while they get "experienced" under their own policies. Parents also get hosed by higher premiums with kids on their policies.

 

[KennyG]

Find an independent insurance agent. They know how to solve problems like this.

 

[notaz3]

My son has Idaho drivers license, vehicle registration, and insurance while attending school in a different state. Insurance knows that he is a student in the other state. We have two (not his fault) insurance clams in that state and no problem.

 

[garry1p]

My son was involved in an accident with a serious injury to a fellow student in the back seat (broken neck).
While the accident was not his fault, he was hit in the rear the other driver claimed his brake lights didn't work.

I received a summons to appear in court and faced a $100,000 fine. He was listed on my insurance.

What saved me was the car was titled in his name. During the deposition I swore under oath the car was not a family vehicle, registered in his name and only used by him.
My lawyer said if the vehicle was registered in my name and considered a family vehicle and any blame for the accident was his fault I could have been liable for the $100,000.
The other driver was charged with the accident however, his insurance would not come close to paying the hospital bill so they sued me.

I would contact his other parent's insurance agent for advise and make sure the title is in his name only.

 

[ultrarunner]

Judgement Proof does have benefits

 

[tomplum]

Well, I do know that just having a young driver without their own car in your household raises the car insurance exponentially. So whomever signs on should ask about that up front.

 

[kenmac]

So in that state, a 16 yr old (minor) is allowed to purchase a car and have it registered in their name ?
Here, a car can't be sold to a minor, the car has to be registered in an adult's name.
So here, since the car is registered in the adult's name, the insurance also has to be in the adult's name the car is registered to

 

[ultrarunner]

I bought my Model A at age 12 as a project and dad made sure the title was transferred to me… but as it was not running it was a title only transfer without registration.

No idea of that would fly today.

At the dealership a few cars were sold to Navy guys under 18 but my understanding is being in the military they were emancipated.

50 years ago things were simpler.

 

[jyoutz]

My son was involved in an accident with a serious injury to a fellow student in the back seat (broken neck).
While the accident was not his fault, he was hit in the rear the other driver claimed his brake lights didn't work.

I received a summons to appear in court and faced a $100,000 fine. He was listed on my insurance.

What saved me was the car was titled in his name. During the deposition I swore under oath the car was not a family vehicle, registered in his name and only used by him.
My lawyer said if the vehicle was registered in my name and considered a family vehicle and any blame for the accident was his fault I could have been liable for the $100,000.
The other driver was charged with the accident however, his insurance would not come close to paying the hospital bill so they sued me.

I would contact his other parent's insurance agent for advise and make sure the title is in his name only.

Would their lawsuit against you have had any merit if your son wasn’t at fault in the accident? In either case, your uninsured/underinsured motorist provision in the insurance policy should cover medical for passengers in the event that the at fault driver didn’t have sufficient insurance.

 

[jyoutz]

So in that state, a 16 yr old (minor) is allowed to purchase a car and have it registered in their name ?
Here, a car can't be sold to a minor, the car has to be registered in an adult's name.
So here, since the car is registered in the adult's name, the insurance also has to be in the adult's name the car is registered to

That’s my understanding also.

 

[4570Man]

So in that state, a 16 yr old (minor) is allowed to purchase a car and have it registered in their name ?
Here, a car can't be sold to a minor, the car has to be registered in an adult's name.
So here, since the car is registered in the adult's name, the insurance also has to be in the adult's name the car is registered to

In my state TN a minor is allowed to own a vehicle. It seems pretty stupid that a minor would be allowed to work and pay taxes and drive a vehicle but not own one.

 

[kenmac]

In my state TN a minor is allowed to own a vehicle. It seems pretty stupid that a minor would be allowed to work and pay taxes and drive a vehicle but not own one.

A minor is only allowed to work xx hours. Have to be an adult to have a vehicle titled in your name here. ''Land of the free'' ya know >> LOL

That same minor works, pays taxes and isn't allowed to purchase a gun, tobacco,and alcohol... too so ???