I thought I could go out and buy a vehicle for cash but was told by the agent that I’m not allowed to add another vehicle unless their is another license driver over age 25 in the household.
To add teen daughter to auto policy the insurance agent says I need to change one of our vehicles to a liability only policy for $5000 per year; can I do this if both our vehicles have a loan lien?
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Basically, the lienholder wants their interest protected which is the car. When a lienholder is listed, the insurance company is obligated to let them know if this coverage is dropped. If the coverage is removed, the lienholder, contractually, has a right to obtain coverage on its own and to add the cost to the amount of your loan.
Adding teen drivers to a household can be expensive since they are inexperienced behind the wheel and are statistically more likely to have an accident. Check with your agent to see if any additional discounts are available with a youthful driver. For example, many companies offer a good student discount if the teen driver averages a B or better in school.
Now, purchasing an older car and choosing not to carry anything but liability on oit is yours, not your agent's choice to make. Some companies assign a specific driver to a specific vehicle, others use a "driver averageing " system whereby no one is asigned to a particular vehicle.