How does insurance work?

by Guest » Mon May 27, 2013 11:15 am
Guest

I’m 16 and I want to have my own license. I haven’t yet gotten my license as I thought that I’d only be able to drive if I pay for my own insurance. But just today I heard in school that as long as the car is insured I could drive it on my dad’s insurance.
Does this mean that I can drive any car as long as someone owns it and has insurance on it and I don’t need to pay hundreds of dollars for insurance?

Total Comments: 3

Posted: Mon May 27, 2013 01:57 pm Post Subject:

Not exactly. Your fathers insurance may require him to add you onto the policy if you obtain your license (funny that insurance companies want to collect a premium for risks that they take). If he's required to add you and does not, a claim you file may be denied coverage.

Posted: Tue May 28, 2013 04:39 am Post Subject:

When you apply for your license to drive, you will sign a statement that says you will drive with coverage for your financial responsibility according to state law. Your parent will also certify that as true. The insurance could be your own or it could be as an additional driver under your parents policy. It will still add several hundred dollars to the cost of your parents' insurance, and you should be the one to pay it..

Posted: Tue May 28, 2013 05:34 am Post Subject:

First, friends in your school are wrong.

Every state has different laws and rules on this subject. While in some states you just need to be listed in your parents’ policy, in states like Minnesota, insurance follows the vehicle. Anyone here who drives the car with permission (sometimes explicit) of the policyholder is an “insured driver.” This may include any friend, a neighbor, or family member.

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