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.