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Im a 17 year old female getting auto insurance for the first time. my parents dont want to add me to their plan cause they dont want to be liable if i get into an accident. they say it will raise their rates.
1) is this true?
2) how much do u think i would have to pay? whats the average?
Welcome to the wonderful world of car insurance! As a 17 year old driver, you are one of the riskiest drivers to insure. That means you’ll pay higher premiums than virtually any other driver on the road (fortunately for you, 17 year old females tend to pay slightly less than their male classmates).
To answer your question:
1) Is this true [that your parents will pay higher rates if you get into an accident]?
Generally, yes, this is true.
As a 17 year old driver living at home, you will not be automatically covered under your parents’ car insurance policy unless you are specifically named in that policy. If you want to drive (legally), then you either need to be listed under your parents’ policy or get your own policy. If you plan on driving your parents’ vehicle (legally), then they will need to contact their car insurance company to add you by name to their plan.
Now, let’s get to the real point of your question: what happens when you get into an accident? Will your parents pay higher rates?
Generally, yes: your parents will pay higher rates on their own car insurance if you get into an accident while driving their vehicle. You are a covered driver on your parents’ car insurance policy. It’s not your own car insurance policy: it’s your parents’ car insurance policy.
Most car insurance companies will raise rates substantially after a single at-fault accident. You can expect car insurance rates to rise anywhere from 25% to 100% after a single at-fault accident. Some companies forgive a single at-fault accident (say, a minor accident). However, most companies don’t.
To make things worse for you, this at-fault accident will also affect future car insurance prices for yourself. Let’s say you move out when you’re 19. You get your own car insurance policy for your own vehicle. The car insurance policy asks if you have had an at-fault accident in the past 7 years. If you answer yes, then you may be required to pay higher insurance premiums on your own policy.
If this all sounds complicated, then here’s a simpler version: the car insurance policyholder pays higher rates after a claim is made on that car insurance policy.
If your parents have car insurance with you listed and covered as a named driver, and you get into an accident that requires a claim, then your parents’ rates may rise.
Now onto your second question.
2) How much do u think I would have to pay? whats the average?
If your parents don’t want to add you to their own car insurance policy, then it is possible to get your own car insurance.
As a 17 year old driver, you will pay some of the most expensive car insurance prices in America. Even if you’re the world’s greatest 17 year old female driver, the insurance company has little evidence to prove that. Even if you got your license the day you turned 16, the car insurance company only has 1 to 2 years of driving history proving you’re a safe driver.
All of this adds up to very costly car insurance costs:
- Average Car Insurance Premiums for a 17 Year Old Female Driver: $4,200 to $6,500 per year
- Average Car Insurance Premiums for a 17 Year Old Female Driver Under Parents’ Insurance: $2,000 to $3,000 per year
Rates vary widely depending on your location. In some states, 17 year old females pay more than $7,000 per year on average for car insurance. In all states, 17 year old males pay significantly more for car insurance than 17 year old females.
Fortunately, there are ways to reduce car insurance premiums as a 17 year old female driver, including:
- Comparing multiple car insurance quotes online to get the best rate
- Asking about good student discounts or good grade discounts from your insurance company
- Taking a defensive driving course
- Driving as safely as possible and avoiding at-fault accidents and other claims
- Using a telematics device that tracks driving habits to give you a customized car insurance rate
- Asking your parents (nicely) if they would re-consider adding you to their policy if you promise to be a safe driver
I have some good news and some bad news. I’ll give you the bad news first –
If you are under age 25, your insurance is going to be much higher than you average adult. There is no way around it. That’s just the way car insurance works.
Since you are going out on your own to find auto insurance, you are not obligated to use your parent’s company. I can’t say for sure, but I doubt they are getting the cheapest rates possible. There are many sites, such as this one, that allow you to compare insurance quotes from different companies until you find the best rates.
It’s hard to estimate your price per month for your car insurance because there is a lot to be taken into consideration. Your location, the type of car you’ve got, etc.
Yes, your parents insurance would potentially go up if you were in an accident and were the driver at fault. However, the price is still probably going to be higher for you to have insurance on your own. Who is paying for the insurance, you or them? If you’re paying for it, see if they’ll put you on their policy and then you pay them the difference. They’ll likely get an additional discount for adding another vehicle so that will be an added savings.
Do you get good grades? If so, be sure to tell this to your insurance company so you can get an extra discount. Another way to get an additional discount is to take a defensive driving or driver safety course. You may have already completed drivers ed, but an additional safe driving course is going to get you cheaper rates.
I hope your parents will reconsider.