Topic: Insurance for teens

[Dooodledude]

Im sixteen and looking for a sporty car. If my parents were to pay for my insurance for a year or two and then i would start paying at 18. Would the amount i would be paying at 18 years old if my parents were to pay for the last 2 years, be different if i were to pay my insurance for those 2 years my self?

[tortoise]

Where do you live?  Prices are heavily dependent upon location.

And no, the insurance company doesn't care who is paying for it.

[johngenx]

Actually, in Alberta, they do care who's paying.  If you're a casual/recreational driver on your parent's policy, the pricing is lower than if you're buying your own policy.

The key is not to buy collision insurance.  It's incredibly expensive for any young person.   That's why it's a big goof to buy a car that you would need more than liability insurance on.  The annual cost of collision can be shocking.

We can add our daughter to our policy for an additional $1800/yr (which I think is robbery) but that includes all coverage on all four of our cars.

[tortoise]

I don't think he can be added to his parents policy if he has his own car.

So his parents would be paying for the dedicated policy.

[Dooodledude]

Yes i live in Alberta, Edmonton. And is collision insurance just insurance that covers any damages to your car if you get into a collision?
And whats Liability Insurance?

I dont think i get how insurance works on cars. Please Inform Me?

[aquadorhj]

Yes i live in Alberta, Edmonton. And is collision insurance just insurance that covers any damages to your car if you get into a collision?
And whats Liability Insurance?

I dont think i get how insurance works on cars. Please Inform Me?

You are correct :

Collision insurance : you get in accident, it covers damages to YOUR car.

Liability insurance : you get in accident, it covers the damages YOU CAUSE.  includes cars, persons, properties.

in ANY CASE, unless you are Warren Buffet, liability insurance is most important.
if you hit pedestrian, car or property and cause disability or death or severe property damage, Liability insurance is the one that will pay for the damages caused.  (up to their policy limit, i.e.  1 million dollars, anything over that amount you are on the hook.)   and you will want at least 1 million dollar liability coverage.