Insurance new driver in the family have questions !

[fat tire]

So we have a new driver in the family, and we have more vehicles than drivers. My insurance insists that my son the newly minted driver be on our policy as primary on at least one vehicle, cost $8700 a year extra on top of our already $4800 ish. Vehicle insurance bill. So that’s not so affordable.
the insurance company states it’s the policy to do this and I have no choice.
what are my options here and what is the law…..it seems insurance companies in Alberta have a blank check type policy. I don’t have that…… all our vehicles are 5 years old and older.
can anyone chime in.

 

[new_nytro]

So we have a new driver in the family, and we have more vehicles than drivers. My insurance insists that my son the newly minted driver be on our policy as primary on at least one vehicle, cost $8700 a year extra on top of our already $4800 ish. Vehicle insurance bill. So that’s not so affordable.
the insurance company states it’s the policy to do this and I have no choice.
what are my options here and what is the law…..it seems insurance companies in Alberta have a blank check type policy. I don’t have that…… all our vehicles are 5 years old and older.
can anyone chime in.

Pretty much accurate. $8700 seems a bit rich as my daughter was about $3500 for full coverage. But yeah all companies will make them a primary on one if there are more vehicles than drivers. Driving school will knock about 10% off. You could buy a POS and only put liability on it and make them the primary on that one to get it cheaper. They can still drive the other vehicles.

 

[fat tire]

I was thinking of getting my wife to insure two and I would insure two with different company and add him as casual. I really don’t know. They already sent me the bill.

 

[wheels]

I was advised to get them there own policy and a 4 door sedan with a 4cyl for $5k and under. Plus driving school which they already had. That would be the cheapest. Only liability because the car isn’t financed. They paid $2400 a year. Boys. Not sure if girls are cheaper. Also broker said if they start now they are building a record on there own and if they crash (which most do) it won’t effect my rates or risk loosing everything in law suits. I chipped in some but it comes out of their accounts every month. Hard for the kids to afford on their own. Makes you realize probably lots of people running with out it at these costs.

 

[fat tire]

Yeah I did the hand me down car to him but will look for a manual POS Sad it costs two arms and a leg…..it’s like they are from the government or something.

 

[rsmorin1]

I was advised to get them there own policy and a 4 door sedan with a 4cyl for $5k and under. Plus driving school which they already had. That would be the cheapest. Only liability because the car isn’t financed. They paid $2400 a year. Boys. Not sure if girls are cheaper. Also broker said if they start now they are building a record on there own and if they crash (which most do) it won’t effect my rates or risk loosing everything in law suits. I chipped in some but it comes out of their accounts every month. Hard for the kids to afford on their own. Makes you realize probably lots of people running with out it at these costs.

This is exactly what I did .. eventually lol. Both sons used the 2000 malibu for a couple years each on my policy. I couldn’t wait to get them on their own. $ 1000 car was 2k plus in liability only insurance. They each have their own cars & policy now. I help the youngest pay it for the year, saves a financing charge (AMA).

Note: there is a clause on my policy - no drivers under 25 unless a separate class 05 or 06 premium is charged

Keep this in mind. It sucks when you need a driver or just need 1/2 hour break.

 

[crazy_wheeler]

My broker said the same thing with our son. Have an older 4 door sedan that he will own with the policy under his name. Hate to see how bad insurance companies will try to soak him for having a disability & needing adaptive controls for the turn signal’s.

 

[TylerG]

My broker said the same thing with our son. Have an older 4 door sedan that he will own with the policy under his name. Hate to see how bad insurance companies will try to soak him for having a disability & needing adaptive controls for the turn signal’s.

Sadly Marty, youre likely not far off. They will definitely take advantage of that

 

[carguy]

My daughter got her class 5 GDL last summer before looking into insurance costs and when we asked about adding her to our policy it was an additional $5000+ per year. They based the rate on my wife's 2021 Explorer, which my daughter wouldn't drive alone. My other vehicles are a 2105 F250 and a 2000 4Runner - she would be driving this mostly. Can't afford an extra 5K to put her on our policy.

Considered giving her my 4Runner, still would cost almost $4000 per year with her as only driver. Even looking at other older vehicles like Corolla's, Civics etc are $2700-$3000 per year and anything 4wd is $3500 and up. Certainly I can help subsidize her insurance costs and will pay for a decent vehicle but cannot absorb all costs. And she cannot afford the real cost of ownership on her part time job. Her job is high school and making sure she gives herself every option possible and not worry about paying for car insurance.

Having her class 5 license meant she couldn't drive anymore as insurance costs adding her to our policy would double. We went to a Registry and asked about reverting back to a class 7 as she wanted to drive, even if only with a learner's license. They said can't be done. But it can.....I learned (from the registry office) as a parent I can remove consent for her as a minor to have a class 5 license. In doing so, it reverts back to a class 7. I paid the $38 service charge and she has 3 years from that date to reclaim her class 5 license. No test. Just has to pay the $38 service charge - which I will do at that time. My daughter wanted to drive, even with only a class 7 and realized she couldn't afford the cost of insurance yet either.

She wanted to drive and this was a way to continue under our policy, in all our vehicles at no additional cost. Sure, she can't drive solo but she really wouldn't anyway. She cannot get parking at high school. Her part time job is one block from home - no need to drive solo there. She drives everywhere she goes, obviously with a parent in the vehicle. She's gaining more experience driving in city. Sure she doesn't have her own policy and she will have to pay it later when she finally reclaims her license in summer of 2024. But until then she won't have the boat anchor of expense of vehicle insurance costs.

And we did pay for her to have additional driver training last summer for the experience and the discount - which doesn't help much. What we didn't do was inquire about the cost of insurance with her having a class 5 on our vehicles or one of her own. I have a second daughter just turned 16 that is waiting now rather than be in a hurry to get her class 5. And a third at 14, able to start with a class 7.

Insurance costs for new drivers are insane. Especially in the city. In a small town where I grew up, we have found insurance would be about $1000 to $1200 less than here in Calgary.

 

[rsmorin1]

My daughter got her class 5 GDL last summer before looking into insurance costs and when we asked about adding her to our policy it was an additional $5000+ per year. They based the rate on my wife's 2021 Explorer, which my daughter wouldn't drive alone. My other vehicles are a 2105 F250 and a 2000 4Runner - she would be driving this mostly. Can't afford an extra 5K to put her on our policy.

Considered giving her my 4Runner, still would cost almost $4000 per year with her as only driver. Even looking at other older vehicles like Corolla's, Civics etc are $2700-$3000 per year and anything 4wd is $3500 and up. Certainly I can help subsidize her insurance costs and will pay for a decent vehicle but cannot absorb all costs. And she cannot afford the real cost of ownership on her part time job. Her job is high school and making sure she gives herself every option possible and not worry about paying for car insurance.

Having her class 5 license meant she couldn't drive anymore as insurance costs adding her to our policy would double. We went to a Registry and asked about reverting back to a class 7 as she wanted to drive, even if only with a learner's license. They said can't be done. But it can.....I learned (from the registry office) as a parent I can remove consent for her as a minor to have a class 5 license. In doing so, it reverts back to a class 7. I paid the $38 service charge and she has 3 years from that date to reclaim her class 5 license. No test. Just has to pay the $38 service charge - which I will do at that time. My daughter wanted to drive, even with only a class 7 and realized she couldn't afford the cost of insurance yet either.

She wanted to drive and this was a way to continue under our policy, in all our vehicles at no additional cost. Sure, she can't drive solo but she really wouldn't anyway. She cannot get parking at high school. Her part time job is one block from home - no need to drive solo there. She drives everywhere she goes, obviously with a parent in the vehicle. She's gaining more experience driving in city. Sure she doesn't have her own policy and she will have to pay it later when she finally reclaims her license in summer of 2024. But until then she won't have the boat anchor of expense of vehicle insurance costs.

And we did pay for her to have additional driver training last summer for the experience and the discount - which doesn't help much. What we didn't do was inquire about the cost of insurance with her having a class 5 on our vehicles or one of her own. I have a second daughter just turned 16 that is waiting now rather than be in a hurry to get her class 5. And a third at 14, able to start with a class 7.

Insurance costs for new drivers are insane. Especially in the city. In a small town where I grew up, we have found insurance would be about $1000 to $1200 less than here in Calgary.

We were in a different “risk” grid when we lived north of Edmonton, cost went up when we moved to Cochrane.

That sucks, I remember how liberating it was to be able to drive myself. It shouldn’t be financially crippling for a young driver to start off.

 

[wheels]

Ya it’s going to be hard for our kids to get ahead. 2200 a month for a 2 bedroom apartment to rent plus utilities and food. Oldest thought him and a buddy would move in together but even with splitting everything plus phone and insurance vehicle gas/maintenance just no way. Basically working to have a place to live nothing left for investments or try to save for future needs. He’s going to be living at home for a while. Working full time for not bad money but everything is is so expensive.

 

[lilduke]

Suppose kids these days need a 18bedroom home and Ferrari for a first car. Going to be tough out there forsure LMAO

 

[fat tire]

Thanks for the reply’s, hopefully I can get some quotes and start looking at options. Realistically anyone without insurance history is in the same boat. Going to explore more options but if anyone has some helpful insight by all means chime in

 

[rsmorin1]

Thanks for the reply’s, hopefully I can get some quotes and start looking at options. Realistically anyone without insurance history is in the same boat. Going to explore more options but if anyone has some helpful insight by all means chime in

We found AMA to be one of the better priced quotes. I think they also base the price on weight of vehicle.

 

[neilsleder]

Driving school bring the prices down? Was a big difference when I was 16. But that was 27 years ago.

 

[mclean]

So genders still apply for insurance prices? Tell them your son is actually your daughter...just don't tell your son haha

 

[neilsleder]

So genders still apply for insurance prices? Tell them your son is actually your daughter...just don't tell your son haha

Modern day problems call for modern day solutions lol.

 

[dmoorhouse]

My son is 17 now and the best deal we could find for him and his 2012 Hyundai car was through Costco Insurance. I think it's $3300ish per year. That's full coverage.

 

[Anvil1010]

My daughter got her class 5 GDL last summer before looking into insurance costs and when we asked about adding her to our policy it was an additional $5000+ per year. They based the rate on my wife's 2021 Explorer, which my daughter wouldn't drive alone. My other vehicles are a 2105 F250 and a 2000 4Runner - she would be driving this mostly. Can't afford an extra 5K to put her on our policy.

Considered giving her my 4Runner, still would cost almost $4000 per year with her as only driver. Even looking at other older vehicles like Corolla's, Civics etc are $2700-$3000 per year and anything 4wd is $3500 and up. Certainly I can help subsidize her insurance costs and will pay for a decent vehicle but cannot absorb all costs. And she cannot afford the real cost of ownership on her part time job. Her job is high school and making sure she gives herself every option possible and not worry about paying for car insurance.

Having her class 5 license meant she couldn't drive anymore as insurance costs adding her to our policy would double. We went to a Registry and asked about reverting back to a class 7 as she wanted to drive, even if only with a learner's license. They said can't be done. But it can.....I learned (from the registry office) as a parent I can remove consent for her as a minor to have a class 5 license. In doing so, it reverts back to a class 7. I paid the $38 service charge and she has 3 years from that date to reclaim her class 5 license. No test. Just has to pay the $38 service charge - which I will do at that time. My daughter wanted to drive, even with only a class 7 and realized she couldn't afford the cost of insurance yet either.

She wanted to drive and this was a way to continue under our policy, in all our vehicles at no additional cost. Sure, she can't drive solo but she really wouldn't anyway. She cannot get parking at high school. Her part time job is one block from home - no need to drive solo there. She drives everywhere she goes, obviously with a parent in the vehicle. She's gaining more experience driving in city. Sure she doesn't have her own policy and she will have to pay it later when she finally reclaims her license in summer of 2024. But until then she won't have the boat anchor of expense of vehicle insurance costs.

And we did pay for her to have additional driver training last summer for the experience and the discount - which doesn't help much. What we didn't do was inquire about the cost of insurance with her having a class 5 on our vehicles or one of her own. I have a second daughter just turned 16 that is waiting now rather than be in a hurry to get her class 5. And a third at 14, able to start with a class 7.

Insurance costs for new drivers are insane. Especially in the city. In a small town where I grew up, we have found insurance would be about $1000 to $1200 less than here in Calgary.

Thanks for the great post. The only downside I can see to this is that now their driving experience/insurance rating is deferred to a later date. So you save now, but don't get the benefit of lower insurance earlier in the future by not having you own policy.

 

[ferniesnow]

The above information sort of rattles my nerves. Not that I have any new drivers in our household but the simple fact of what the insurance companies are demanding.

If you only have one vehicle in the household, how do the insurance companies handle the new “occasional” driver?