Teen auto insurance


David Letterman : I have a child away at college (different state) with his car. For tuition purposes, the car was registered in the state where he’s going to school. We are currently with a large, well-known company (rhymes with farmer) and he’s on our PAP. My instinct and training tell me that we should put him on his own policy; however, you all know what that means in premium dollars for a youthful driver, clean record or not. There’s one additional important note, we are still on title for the vehicle, along with the bank. Insurable interest, yes? Anyway, I’m looking for opinion here from an underwriting and claims standpoint. Your feedback is appreciated!

Response : You should be able to keep the car on your policy. You have an insurable interest and if your kid is at fault in an accident they will go after the registered owner – you.

When I did personal lines this came up often. Garaging can & will make a difference in premium. I was in Iowa at the time, had a family send their kids to college in DC. Kept him on the policy, the premiums increased dramatically just due to the new location.

An issue could come up if your company does not write where he is going to school but (rhymes with farmer) is in most states for auto.

FYI if you take the kid off your policy they can keep good student with most companies but would lose multi car and auto/home discounts.
You can try online for a free auto insurance quote and find out the comparitive quotes.

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Teen auto insurance