One of our teens is getting her license today, so we are at the DMV this afternoon.
I’m happy to live in a relatively small town, as I don’t think I’ve ever had to wait more than about 15-20 minutes to do anything here at this location.
Once she passes and gets her actual license, I’m going to have to put her on my auto insurance. The fun is just beginning though. By this time next year, I may 4 teenaged drivers on my policy.
This got me thinking about the way auto insurance works (and the way I think I wish it worked instead).
The way it works now:
The rate on each of my cars will change based on who the potential driver’s are. Even though the teens will only be driving my old Hyundai that’s probably worth about $2,500, the rates on my Jeep and my girlfriend’s SUV will very likely be going up as well. At least according to State Farm, they will now base rates on the entire household. Individual cars no longer have assigned drivers.
Lol, I don’t even want to think about what I’ll be paying for insurance in 2026.
How I wish auto insurance worked:
(Caveat up front, I’m not even sure this would save me any money in my situation).
Every licensed driver should have to have liability insurance that will cover them in any car they drive. Their rates would be based on their age, driving record, sex, and whatever other factors insurance companies regularly use to determine risk profiles.
We could then have varying levels of coverage on individual cars based on their value, repair and replacement costs, whether we wanted full or partial coverage, etc., We could also choose to have no coverage at all on the car itself. In other words, if I wanted to let anybody with liability insurance drive my old Hyundai, and just not get it repaired or replaced if something happens, that should be okay.
Right now, just liability insurance on the Hyundai costs nearly as much as full coverage. This is despite the fact that I am also paying for liability as part of the polices on each of the other two vehicles I sometimes drive.
I suppose I can see why the vehicle someone drives might make a difference when it comes to liability. For instance, an 18 year old boy in sports car is probably more of a risk than that same boy in a minivan … but not always.
I’m sure there’s a reason the laws are currently written like they are. The cynic in me is whispering “it’s because insurance companies make more profit this way” (but I don’t know that for a fact either).
I just wish we could change the laws mandating insurance to make them tied to individual drivers rather than individual cars.
Okay, mini-rant over.
What do you think?
Til next time, Todd
DMV is such an interesting maze, Todd. Love your humor throughout. It brings a refreshing perspective.