Insurance Company Charging For NON DRIVER??

State: NJ (Monmouth County) State Farm Insurance

Question: I am 19 years old and I have racked up many points, my license is currently suspended and has been suspended since November 11, 2001. I get it back July 11, 2002. I was under my parents policy, they just got there new policy today and my insurance company is charging me for 10 MV points, -2 for some reason, so 8 MV insurance which cause ~ $3,000 - $4,000 raise. I don't drive the cars in this house, I don't even have a current drivers license but still on Tuesday I was going to get a car I just bought insured, under my OWN name because it's going to be parked on the street. How can the insurance company charge me if I don't drive the cars, we told them to take us off the policy, etc. They refuse, is there any law that stops this? there must!! please help.. URGENT.. The bill came to ~ $8,000 for 6 months.. and we do NOT have that money!

[I AM ALWAYS LIABLE]

Originally posted by FocusOn718
State: NJ (Monmouth County) State Farm Insurance

Question: I am 19 years old and I have racked up many points, my license is currently suspended and has been suspended since November 11, 2001. I get it back July 11, 2002. I was under my parents policy, they just got there new policy today and my insurance company is charging me for 10 MV points, -2 for some reason, so 8 MV insurance which cause ~ $3,000 - $4,000 raise. I don't drive the cars in this house, I don't even have a current drivers license but still on Tuesday I was going to get a car I just bought insured, under my OWN name because it's going to be parked on the street. How can the insurance company charge me if I don't drive the cars, we told them to take us off the policy, etc. They refuse, is there any law that stops this? there must!! please help.. URGENT.. The bill came to ~ $8,000 for 6 months.. and we do NOT have that money!

My response:

You can swear, jump up and down, scream, yell, plead, beg, and everything else . . . but the reason why the insurance company is charging so much, and why you're going to put your parents in the "poor house" is because you still live with Mom and Dad, and the insurance company knows that you still have "access" to their cars - - and, it is a possibility (slim as it might be) that you'll get behind the wheel of one of their cars. The insurance company doesn't want to take a chance - - but, if they have to, and because you're still living there, they are going to charge the astronomical amounts to cover everyone in the house who has "access."

If you move out (since you're an adult), the problem will be solved.

And no, it doesn't matter that you have your own car and your own separate policy. Mom and Dad's insurance company only knows that, from a statistical standpoint, you'll drive one of their cars and get into an accident (especially with your record, the odds are good that you will sometime very soon).

Move out and your parents' lives, and bill paying ability, will go back to normal.

IAAL

Thank you very much for this advice! I just have one more question I guess that you might be able to answer me... We were all just discussing this issue, and first of all just to let you know, they WON'T pay.. I've always payed my bills, etc... It's up to me to pay, and well simply put if I don't pay... They'll kick me out We came to the conclusion after doing some math they're charging me 11,000/year for insurance. Our first thought was to get a quote of how much for this car I'm buying with just liability under this policy would be under my name, because all the other insurance companies, for just liability, with my record... Are charging me $1,117/year (average of all the companies)... How they charge me $11,000/year is beyond me.

If I wanted to "move out"... My grandma lives nearby, how do I "legally" move out? Any if I "legally" move out... can my grandmas insurance company find out about me and try and put me on her policy?

To satisfy the underwriter @ your parents insurance company it will probably take (1) a copy or proof you have changed your residence with the Dept. of Hwy. Saftey (DMV, license bureau etc) by providing a copy of the registration or title to your car, your drivers license or some documentation, and a copy of YOUR insurance policy, also reflecting your new address. I wouldn't be surprised if their insurer also requires they sign an Exclusion stating you will not drive, if your relative resides in the area, just as a a precaution. Good luck, and slow down -- you will enjoy lower insurance rates and probably a much longer life.

[I AM ALWAYS LIABLE]

Originally posted by FocusOn718
Thank you very much for this advice! I just have one more question I guess that you might be able to answer me... We were all just discussing this issue, and first of all just to let you know, they WON'T pay.. I've always payed my bills, etc... It's up to me to pay, and well simply put if I don't pay... They'll kick me out We came to the conclusion after doing some math they're charging me 11,000/year for insurance. Our first thought was to get a quote of how much for this car I'm buying with just liability under this policy would be under my name, because all the other insurance companies, for just liability, with my record... Are charging me $1,117/year (average of all the companies)... How they charge me $11,000/year is beyond me.

If I wanted to "move out"... My grandma lives nearby, how do I "legally" move out? Any if I "legally" move out... can my grandmas insurance company find out about me and try and put me on her policy?

My response:

I don't quite understand why you're asking " . . . how do I "legally" move out?"

Quite simply - - you pack your bags and go. You've been an adult since you were 18 years old. You're no longer a child, and you have the same rights, privileges, duties and responsibilities as your parents, me, or anyone aged 18 or over. So, that's "how."

They are charging $11,000.00 plus to insure you because:

1. You're still living there, and

2. Your parents obviously have better than mere "liability" coverage. And, since you're on Mom and Dad's policy, you get to pay for the same coverages. Insurance companies do not mix coverages. It's the same for all cars and all drivers on the same policy.

Sure, Grandma's insurance company will, at some point, find out that you're living with her. Since that's the case (it always happens), they won't put you on Grandma's policy, but they will markedly raise her rates because you now will have "access" to her car as a "resident" of her home.

Good luck to you. Isn't insurance a drag - - especially when you're such a poor driver?

IAAL

I was saying "legally" move out for many reasons... I just wanted to, as far as paper work move to my grandmas house. And was wondering what proof I need to move there, I do plan on moving out but that won't be until I get my license back.

Any fyi, I am honestly not a bad driver... One thing that screwed me up 100% on my license is I was driving the company car, company owned and insured and got stopped because they were looking for someone, everyone was being stopped... And they noticed something familiar about me and asked me for my info when they found the documents to be outdated which resulted in multiple tickets, of driving without valid insurance, registration, etc... ANYWAY....
I just wanted to state that I really am not a bad driver. Just someone with a lot of bad luck and trying to avoid the troubles it has caused now.

After a brief conversation (not I, but my Mom) with the insurance agent, and the reason it ended was because the insurance company hung up, or oh sorry... got disconnected. They said they need a lease agreement that I moved out.

How can they require a lease agreement or even some bill? I agree with just the fact that a car is registered somewhere else.

Many reasons for that, I can move in with a friend, I mean anything.. how can they require such information??

[tammy8]

They need a copy of the lease to keep people from screwing them out of premiums!

I understand that, to an extent. There are MANY reasons why someone who is moving won't have that. Perfect example:

Boyfriend/Girlfriend both 19... Girlfriends parents pay for an apartment for her, why? Maybe the parents moved to FL or a different state and she wanted to stay here... They got her an apartment.. Boyfriend wants to move in with her, got kicked out of house, whatever reason... He now lives there, 100%... Doesn't talk to the parents.. His name can't get on the lease.. Even his girlfriends name is not on the lease or whatever.. How can they require such information???

Well you can always NOT drive for a couple of years. till your 21.

You could move to New York city where having a car is a liability, since there is no where to park it.

Think about it... there is tons of public transportation, lots to do at all hours of the night, and in a couple of years it wont show up on your record and you can get cheap insurance again...

Why not have fun with your life in the Big Apple?

Is a car that important to you?

PS it should only take about an hour train ride to Middletown to see your parents from Penn Station!

with my son a few years ago.My son got three moving violiations in a year and I found out when my ins co sent me a letter cancelling my ins.At first I was told everyone living at home had to be on my ins.My ins broker told me there were a few companies that would not require this and thats what I got. My sons then got there own ins.

First, I guess the insurance company that insures your parents does not feel you really will move, and as an underwriter I may ask for the same thing. However, if you TRULY don't have a lease, perhaps the proof I recommended above would work. But,
what happens to your grandmothers rates????? As Vincent stated, there are some insurers that will take high risk drivers but that doesn't help your parents keep their coverage with a "preferred company". Face it, the time has come to pay up or go without for a couple of years until you have cleaned up your driving record. The insurance company can ask for anything (within reason) that they feel is needed to assure accurate underwriting of this risk, and I am afraid I would have cancelled the policy long before now. Best of luck.