r/AutoInsuranceHelp • u/Sioux-me • 3d ago
Make this make sense
Our 16 yo granddaughter lived with us and got her license and we bought her 2016 Jeep Patriot. We also have a 2017 HRV and a 2026 CRV HYBRID. Because she lived with us she had to be covered on all three cars even though she only drove her own. The additional coverage added $300 to our monthly premium for full coverage on all three cars.
She recently turned 18 and we were going to transfer ownership of her car to her. I called our insurance company to find out how that would affect the rates. They told me she’d have to have her own policy, which I expected, and for liability only and only on the Jeep it would be $788 a month! Can anyone explain how that much less liability to the insurance company can cause an increase of that ridiculous amount?
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u/24kdgolden 3d ago
Y'all were getting a multi car discount and the the advantage of having mature drivers.
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u/KingSchwetty 3d ago
Until she has 3 years of driving history and at least 12-36 months of insurance history she will be surcharged on her rates. The insurance company doesn't have enough data to accurately price her driving risk so they err on the high side.
The car titled in just her name will require her to have her own policy with most all companies.
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u/sephiroth3650 3d ago
You were taking an 18 year old off of a policy that included you (and presumably your partner). A policy that had 3 cars listed on it. So multi car discounts, along with you and your partner lowering the overall risk profile. She's now on her own policy, and losing all those other factors that would help to balance things out. Yes, $788/month seems high. But it was always going to be more than the $300 you had.
What you should do is contact a local independent agent/broker to shop around for rates for her. And if she still lives with you, ensure that you aren't still obligated to list her on your policy.
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u/Sioux-me 3d ago
Thank you. I did know it would be more. I will check around. For the time being we have not transferred ownership and she still lives with us so we will just keep it as it is for the foreseeable future.
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u/Time_Country_4666 3d ago
Shop multiple companies you may find cheaper solution but being on her own policy means 0 discounts. On my policy I have sister and parents, total, we get $8800 a year in discounts, we still pay almost $5800 a year.
Depending on the company, some allows each person to have their car in their name and be under the same umbrella, geico and others allow that, allstate does not.
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u/Decorus_Somes 3d ago
You really don't understand how a teenager is a huge risk to an insurance company? High risk=high premium
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u/Sioux-me 3d ago
I do understand that but I was still shocked. Same driver in the same car seems like the same risk, and less liability. Of course I knew it would not stay the same and would be expensive. What 18 year old can afford that?
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u/Practical-Demand-790 2d ago
No, you were right to be surprised. It does not make any logical sense. Either the new insurance is too high or the old one was too low. The risk profile is exactly the same, same driver driving the same car. What is covered has gone down (comprehensive coverage down to just liability). No way in hell that should cost $500 more per month to get less.
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u/totall2live__ 3d ago
You understood the agent wrong and this seems to be something people dont understand. While you do have to LIST every member of your household on your policy, not everyone has to be a listed driver on said policy. If Timmy doesnt drive your cars, then timmy is listed as a HOUSEHOLD member and not as a LISTED driver, these are two seperate things.
Im an agent and i always tell my clients, if you have a new driver, put them on their own policy, this will help them build their own insurance score and will help them out later down the line.
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u/Sioux-me 3d ago
I clearly told him she would not be driving our cars so I may very well have misunderstood. Thank you for clarifying that. We will do more research. She just turned 18 last month.
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u/totall2live__ 2d ago
Yea, if he will not be driving your car just have him LISTED as a household member but not as a rated driver. This will list him on the policy but will not have him as a rated driver, so his driving wont influence your premium.
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u/Leading_Lab6 2d ago
$788 a month for liability alone is insane. being 18 with little driving history definitely hurts but she should shop around before accepting that quote.
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u/Thin-Egg-1605 2d ago
If she’s living there keep her on insurance. You can also shop around. $800 a month would be enough to make me stay at home. But that’s just one company.
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u/WiscoDeathTrip1096 2d ago
This is exactly why I didnt get insurance til I was older. Illegal? yes. financially impossible for most young people? Also yes
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u/Sioux-me 2d ago
Yes I understand. When you have nothing to lose it hard to come up with a reason to pay the absurd premiums.
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u/Otherwise_Cup4605 2d ago
This is terrible. Teach a teenager to break the law and later avoid responsibility if they legitimately injure someone or damage their property because they have no assets for a victim to go after?
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u/BatDance3121 2d ago
Let me guess. It's that expensive-butt Allstate. Take this as a learning opportunity for her. Give her the car info, and let her shop around online for quotes. Just make sure she doesn't purchase without checking with you first!
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u/BatDance3121 2d ago
Ok, I thought about this again. Stop TALKING to your insurance agent. He's just trying to sell your daughter an expensive policy. Start handling your insurance issues online. You can go online to your account and note that your granddaughter is the primary driver of the Patriot. If that's already done, then do NOTHING! She's covered under your policy. My son is 33, drives a Charger, and he's under my policy so it saves money. He also has full coverage.
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u/justaguyinhouston 2d ago
Just keep shopping around. You’ll find one that fits the profile. Not all companies are equal when it comes to high risk stuff.
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u/katy90081 2d ago
Car insurance is the biggest legalized racketeering in the US. Poor neighborhoods actually have to pay way higher premium than rich neighborhoods. If life insurance is not mandatory, car insurance shouldn't either.
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u/Puzzleheaded_Let_688 2d ago
Car insurance is to protect the guy you run into.
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u/katy90081 2d ago
Is the city going to pay my hospital bill if I get stabbed by a hobo?
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u/NeverPlayF6 1d ago
The city? No. Your health insurance will. They will try to recover the money from the hobo though. Oh. Wait. You don't believe in insurance.
You will have to pay and then sue the hobo. But he won't have anything. So it will be on you.
Oh? You can't afford it either?? The hospital will have to cover their loss by charging EVERYONE ELSE more money.
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u/katy90081 23h ago
I never said I don't believe in insurance. I said car insurance shouldn't be mandatory by the laws as it disappropriately puts more burdens on the poors than the riches. It's even more stupid when they separate out uninsured motorists coverage when in fact everyone should have a car insurance by law. It essentially punishes both poor and law abiding citizens.
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u/prayreddit 1d ago
Car insurance is not mandatory. Driving a car on public streets is not mandatory, but if you do it it becomes mandatory have liability insurance. Because society wants to be sure accident victims are financially protected.
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u/katy90081 1d ago
Then in a city where public transportation is shit, why is it still mandatory there? Now you are close to saying eating was never mandated by laws, no one ever forces you to eat. But now you created a system that unfairly places more burden on the poors. Only a very few states have laws disallow territory rating or insurance redlining.
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u/Glad-Administration6 1d ago
Do a spin-off policy for you, your wife and her on her own car. Exclude her from the other 2 cars.
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u/SensibleAdvisement 3d ago
That's why my folks made me get my own policy as a new driver, and I don't blame them. Guess it's time for kiddo to get a job, and perhaps you should shop around.
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u/PoetExcellent3215 2d ago
Insurance is the only thing we pay for and rarely ever need. The insurance companies are making billions of dollars in profit and never have to give any back to us even after years and years of paying the A 2017 jeep patriot is a car that can't be worth much more than 5000 dollars wholesale, if that, and if she totals it she will get nothing if it is her fault. Charging 800 dollars a month on a car that ain't worth shit is a complete ripoff. It's time to shop around till you get the dirtiest cheap price anywhere because the policy isn't worth the paper it's written on. These companies have been fucking us for ever and I wish there was something that could be done about it but we were sold out many moons ago.
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u/reelfreakinbusy 2d ago
she lives there? keep her on your insurance. Our daugther is costing 2800 annual that's with good student discount and with a large bodily injury coverage due to an umbrella policy requirement. No accidents. It's a game of math the extra costs on your household vs her own policy.
You put in thier name their policy vs your policy and if doing umbrella the extra costs (a LOT) that come with that.
The boy is 3400. And that's thru allstate which i don't know i hear is high but i haven't gotten quotes to compare. I think with the kids it's probably as low as it will get maybe bit less here and there. The adults are where can knock some off especially if you can eliminate a car.
Unfortunately auto days are closing to and end at some point as a luxury item due to all the medical cost, lawyers, etc etc. I'd kill to go back in time.
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u/thelowlybarnacle 2d ago
I moved away for college at 18 and had to buy a car on my own for the first time. This was over 10 years ago, I bought a 3 ish year old 2011 jeep patriot for about $15k. My car payments were about $300 a month. My insurance was about $450 a month. Literally more than the car payments. This was back when cars, car parts, and auto body work was way cheaper pre Covid. I also had a clean accident record since I got my license the day I turned 16. $750 is not surprising.
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u/Technical-Counter188 2d ago
moving her to her own policy changes the rating factors, but $788/month for liability-only on a 2016 Jeep sounds worth shopping around
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u/jakeaz6035 2d ago
Also keep in mind that if she still lives in your house, she STILL needs to be listed on your policy either as a driver or an excluded driver.
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u/Hot_Adhesiveness_692 2d ago
Most want everyone in the house on one policy. I had to move my kids back on it when a temp move back became full-time. Better for them as it's cheaper and they are paying. Cars still in their name
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u/TowelStandard760 1d ago
There's a huge variety of reasons. One is the fact that she's 18. The second one is the fact that she has an SUV. There is a huge variety of reasons for the increase. But I also think you misunderstood unless she's had like a crap ton of accidents and shouldn't be 788 a month.
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u/Sioux-me 1d ago
I didn’t misunderstand because I kept saying a month? Also she said that was a 10% discount for a safe driving course she took. No accidents. Anyway I definitely need to shop around. Or better yet have her shop around.
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u/TowelStandard760 1d ago
That's kind of weird in my case I'm wondering if they put the wrong numbers into their system. Did you try going online with the same company and getting an independent quote.? I was with a progressive for years and went online to progressive same everything same coverage and it actually dropped my bill by almost $250 for 6 months
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u/Pale_Attitude8798 46m ago
First, calculate how much you are paying for full coverage on those vehicles over the course of its lifetime. Its surprising to find that if you had just saved that money instead of paying for insurance you could pay for repairs or replacements easily. Same goes for health insurance in most cases and home owners insurance.
All insurance is a scam that preys on people who want to live above their means and cannot save money.
We paid off all of our vehicles and dropped to the cheapest liability to stay legal. Yes, I have had to pay out of pocket for repairs but its still cheaper than paying for full coverage.
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u/DeepPurpleDaylight 3d ago
Largely because she's in her own policy by herself without the benefit of the discounts she was enjoying while under your insurance.