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The Water Cooler
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Car Insurance for a New Driver?!
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<blockquote data-quote="FullAuto" data-source="post: 2775150" data-attributes="member: 5110"><p>Depending on the company, accident free discounts generally follow the policy, not the driver. At State Farm they start at 3 years and then grow until they max out at 10 years. I filed a collision claim on my diesel truck in 2010 and lost my 10 year accident free discount. As soon as it was repaired, I moved it to the policy I had my race car on and canceled it's insurance (because I pulled the engine anyway). I instantly got the 10 year accident free discount back. </p><p></p><p>Now for how you can use this....</p><p></p><p>If you have a policy with a larger discount like that, you insure the kids car on that policy. They will be rated on it but the discount as a percentage will save you more money than how much your car will increase because you have to move it to a newer policy without the discount. It's like yours going up 25%, but theirs dropping 25%. Their 25% savings is a lot more. </p><p></p><p>And as mentioned above, you can buy a 20-30 year old car for a few hundred dollars, black tag it and just insure the kid as a full time driver on it. Then let them drive a vehicle that is insured as your spare. If you do this, crank up the liability coverage on the car they are actually driving. It shouldn't be as much of an increase since it's under your name. But if they cause an accident, you are liable (you are anyway if they are living in your house and driving your car even if they are rated full time on a car and are 18 years old). Make sure you have enough liability coverage to cover your net worth. I see people exceeding their policy limits ALL the time.</p></blockquote><p></p>
[QUOTE="FullAuto, post: 2775150, member: 5110"] Depending on the company, accident free discounts generally follow the policy, not the driver. At State Farm they start at 3 years and then grow until they max out at 10 years. I filed a collision claim on my diesel truck in 2010 and lost my 10 year accident free discount. As soon as it was repaired, I moved it to the policy I had my race car on and canceled it's insurance (because I pulled the engine anyway). I instantly got the 10 year accident free discount back. Now for how you can use this.... If you have a policy with a larger discount like that, you insure the kids car on that policy. They will be rated on it but the discount as a percentage will save you more money than how much your car will increase because you have to move it to a newer policy without the discount. It's like yours going up 25%, but theirs dropping 25%. Their 25% savings is a lot more. And as mentioned above, you can buy a 20-30 year old car for a few hundred dollars, black tag it and just insure the kid as a full time driver on it. Then let them drive a vehicle that is insured as your spare. If you do this, crank up the liability coverage on the car they are actually driving. It shouldn't be as much of an increase since it's under your name. But if they cause an accident, you are liable (you are anyway if they are living in your house and driving your car even if they are rated full time on a car and are 18 years old). Make sure you have enough liability coverage to cover your net worth. I see people exceeding their policy limits ALL the time. [/QUOTE]
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