Should I Drop My Insurance Coverage?
 

So, I'm moving in with nwlinkvxd to a city where everything is within biking distance (work, school, restaurants, even grocery stores). If we need to go anywhere, nwlinkvxd can take me there in his car (which his parents insure). If nwlinkvxd's car breaks down, he and I will also have two roommates that have cars.

Now, this morning I got in a car accident and made a claim with my parents' car insurance agents. Most of the damage was done on my car, and even though I didn't make a police report, I'm guessing the claim will make my parents' premium go up.

So, why should my parents be paying for my insurance while I'm living with nwlinkvxd when I'm not even driving? What do you guys think?

(If you have any questions about stuff, ask.)

If you're not going to drive at all, do yourself a favor and save the money. How much do you (or your parents) pay for your coverage now? That money could probably be better spent elsewhere if you won't be driving.

But since I know you're moving to San Jose (welcome - come to the get together!) I'd very, very strongly recommend that you keep your insurance if you're going to drive at all (even just a tiny bit). Even if you only keep liability, it can save your ass. Not to mention the illegality of driving without it here in California. There are some, shall we say, less capable drivers on the road hereabouts.

But like I said, I'm not going to drive at all. If I need a ride, I'll take the light-rail, have nwlinkvxd drive me, or have his roommates drive me (since we're okay friends). There would be no reason for me to drive.

About the capable driver thing- another reason for me not to drive. I have always have this unexplainable fear of driving. I have nightmares of getting in accidents (which is why I was so sure this morning's events were only a dream).

I think currently my parents get a reduced rate on my insurance since it's under my dad, but after this accident, it will probably go up.

Have your parents talk to their insurance agent. If you aren't going to have your own car, it may not cost anything to keep you on their insurance.
I have 2 daughters, one of which lives at home. In my case, I dropped the daughter that lives at home because it wasn't worth $500/year to insure her on my cars ( it was cheaper for her to get her own coverage on her car). The daughter that does not live at home is covered since it was free.

You just answered your own question. :)

If you don't drive, drop your coverage. You're covered under another person's insurance if you're driving their car (I do believe, this is what my insurance person said) because the person gave you permission to drive their car.

Save money any way you can!

I stopped driving for a number of years, dropping your coverage may put you into a higher risk category when you return to driving since they have no track record for your driving record, it happened to me, and I didn't get it adjusted again until after I turned 25, and then again, when I got married.

sage's info is only correct if you know 100% the kind of coverage that people have, most do not have that ability. Some have insured has to be in the front passenger seat when the uninsured is driving to be insured.

under 25 not married, it can be VERY expensive to insure on your own again. something to think about...

Cyn, most likely, the next time I'll be driving again is when I'm married (after I graduate from college). When you get married, doesn't that drop your insurance rates?

yes it does, but married and under 25 still can be pricey.

the idea is to look at what your current costs are and forecast what you will spend now and compared to future costs.

so if keeping your insurance for several years, even if you don't drive, may save you a few thousand dollars in the long run if you don't stop coverage. I'm going to just pull numbers for something tangible to look at, if it costs you $3,300 ($1,100/year) to keep your insurance for the next 3 years, and if costs you in 3 years $2,000 for the first year, you can see easily that you would be spending alot more. In 3 years at $2,000 the $900 difference you'd be close to having spent the original $1,100/year.

Obviously one shouldn't spend money on things that they do not use or need, so if you truly don't need to drive, (I don't live in SJ, but I did live in Belmont just north of you) then you shouldn't bother.

Well, my mom understands where I'm coming from, but when I talked to my dad about his potential money-saving, he refused to drop my coverage. His reason is that he doesn't want nwlinkvxd "chauffering" me around. Which of course, isn't going to happen, but eh- how can you get that through your dad's head when he's a stubborn guy? Heh...

Thanks for the advice, guys. After that accident, though, I'm glad I'm moving to SJ and not driving. Everything is SO damn expensive to fix!

well, if something does happen between the two of you or you need to reach him/family in an emergency, you'll have no options, and be at the mercy of someone else.

Since you aren't the one paying for it, then you shouldn't sweat it, since it's essentially not your choice. Be grateful though in the future because the difference could be substantial. It was for me. I wrote this in the previous post, and removed it, but will reword it and include it here.

I didn't like people bursting my bubble when I was engaged at 21 to a young lady of 18. I didn't want to deal with the reality of living for myself and combining my life as such. I was more interested in starting 'our' life, which never started and we parted ways. Had I just kept up simple things, car insurance being one of them, it would have saved me thousands of dollars in the long run. I can only say factually, that life changes in directions you least expect it to, for good and bad.

Cyn, I'm confused as to what happened between you and your ex-fiancee. Hmmm...

Anyway, I just wanna help out with my parents. I know I've costed them a lot, and because the accident is my fault and I will cause their premiums to go up, I just wanna make it the least expensive as possible for them.

I am not sure about your insurance, but with every insurance policy I have carried (State Farm, AIG, Progressive, and GEICO) a police report is needed in order for them to process a claim. Your parents' premium may still go up because a claim was made indicating you had an accident, but more likely than not they will not pay anything without a police report.

They asked if I made a report, and I said no. They had no qualms about it- and have said nothing about not paying. I have State Farm.