Overhaulin'

car insurance on your parents policy?

my family currently has 4 cars on Geico insurance. Im 16 years old and when i got my license, the cost of our insurace rose to $1200 more a year. Now, im looking to buy my own car but my dad claims buying another car will raise it to $1800. Can someone explain this to me please? Does your insurance raise everytime you buy a new car? And is the fact that we have 4 cars making my share of the insurance cost more?

Public Comments

1. Since you are a youthful driver (under 21 for females, under 25 for males) you are considered "high risk" to insurance companies therefore you cost more to insure. The fact that you have 4 cars on the policy is actually giving you a discount (its called a multi-car discount). Its simply because you are young. If you go off and get your own policy it will cost even more so stay on your parents policy until you turn 21 or 25 (depending whether you are a male or female).
2. if you just add another car it should not increase a lot. if you buy or add a new car it will increase more. having four cars should not have make a big difference in fact you might receive some multiple car discounts. btw $1,200 is fairly inexpensive and $1,800 is not that high for a 16 yr old. until you reach 25 it will be high. can you qualify for a good student discount? your share of the insurance cost more because drivers 16 to 18 are more likely to get in accidents than any other age group. My friends parents told him they would buy him a car when he turned 16. he wanted a Corvette but found out the insurance would cost more than the car notes. He picked a Nissan Maxima so he could carry his gf and 2 huge dogs.
3. Hi, Good post. I had some problems with my car after I had an accident. My Insurer wanted to raise my rates $525 a year! I've never even gotten a speeding ticket! I looked for a new provider and found this website: http://www.assist-house-mortgage-rent.org They compare all of the major insurance providers and give you the best deal. I ended up saving over $300 from what I was previously paying (that's $825 a year!). Good Luck