Newly Licenced Driver Insurance Question

[crumb]

What is the name of your state? Utah

I have a step daughter that we are ready to sign up for insurance. She just got her licence last week after turning 16. If we add her to our current policy which we have had for over 2 years are we going to be penalized if we change companies in a few weeks?

 

[Zigner]

What is the name of your state? Utah

I have a step daughter that we are ready to sign up for insurance. She just got her licence last week after turning 16. If we add her to our current policy which we have had for over 2 years are we going to be penalized if we change companies in a few weeks?

Why don't you ask the new company?

 

[adjusterjack]

I don't know what you mean by penalized.

You have no choice but to notify your current insurance that you have a newly licensed driver. Your premiums will be adjusted upward.

Your next insurance company will also underwrite you based on a youthful operator in the household. The premiums will reflect that.

Before you jump ship I strongly suggest you add her to your policy and see what the new 6 month or annual premium will be and then shop around and check rates with other insurance companies.

If other insurance companies are higher priced, you might as well not change insurance companies. The only way you find out is if you know what your premium will be with the current company against what another company will charge.

Keep in mind that buying a new policy with a new company allows that company to cancel for underwriting reasons within the first 60 days. Might be better to stay with the same company for another year while your daughter gets some driving experience.

 

[crumb]

I already know how much prices will go up with the current company. The point is that if I search around and find a new company that can give a significantly lower rate then I would like to change companies, but I don't know if her(and us) changing companies (although under our 2 year old policy) after such a short time would trigger a penalty since normally they would give me a penalty if I hadn't been with my current company for a length of time. It seems like a grey area. Maybe this means nothing for us to change since we have been with current company 2 years. That is why I am asking.
If I would be penalized for this then I would wait a day or two before adding her to research some companies.

 

[Zigner]

If you have a licensed driver in your household presently, then you MUST notify your insurance company.

 

[FlyingRon]

I agree. You MUST report all licensed drivers in the household. Your rates WILL go up unless they allow you to explicitly exclude her, which they may not do (very risky for them, risky for you). It's possible that they will not renew you with a youthful, inexperienced operator. You need to contact your agent/insurance company (and frankly really should have done this before allowing her to get licensed).

 

[adjusterjack]

If I would be penalized for this then I would wait a day or two before adding her to research some companies.

That's unwise. I have read thousands of posts on legal websites about people who delayed an insurance decision by a day or two and "bang" that's when the accident happened and they have no coverage.

Concealing your daughter from your insurance company is a material misrepresentation that can result in a claim denied and policy rescinded. THAT's a penalty. And it doesn't even have to be her that has the accident. Any accident, at fault or not at fault, can trigger an investigation that will reveal the concealment.

Your rates are going to be your rates no matter where you are insured. They might be higher or lower depending on any given company's rate structure.

You gain nothing by concealing her from your insurance company, and you have plenty to lose.

 

[crumb]

I got my answer from elsewhere. For anybody looking for the same answer, here it is. The answer is no. You will not be penalized for quickly changing companies shortly after adding somebody to your policy. Thanks for the answers to so many questions that I did not ask.

 

[Zigner]

I got my answer from elsewhere. For anybody looking for the same answer, here it is. The answer is no. You will not be penalized for quickly changing companies shortly after adding somebody to your policy. Thanks for the answers to so many questions that I did not ask.

I told you to look elsewhere from the get-go.
You're welcome for the value-added service we provide.

 

[adjusterjack]

Thanks for the answers to so many questions that I did not ask.

Often the questions you don't ask are the ones that cry out for an answer.