My father-in-law is a new driver and has moved in with us. My wife and I currently have Geico insurance for one car, as we are a one-car family. He plans to take his driver’s test soon, and we’re giving him our old car that we don’t use.
Since we all live together, I’d like to occasionally drive the old car (a few times a year). Should I add my father-in-law and his future car to our existing insurance plan, or would it be better to open a separate insurance policy just for him and his car? Which option would be more cost-effective?
When deciding whether to add your father-in-law (FIL) to your existing auto insurance plan or to create a new separate policy for him, there are several factors to consider:
Cost Efficiency: Generally, adding a driver and a vehicle to an existing auto insurance policy can be more cost-effective than purchasing a separate policy. Insurance companies often offer multi-car discounts, which can result in lower premiums.
Coverage Options: When you add your FIL and his car to your policy, you can maintain a consistent level of coverage that matches or complements your current plan. This can simplify things in terms of claims and coverage limits.
Driver Evaluation: Since your FIL is a new driver, your insurance company may want to evaluate his driving history (if applicable) and may charge higher premiums based on his lack of driving experience. Ensure you communicate openly with your insurance provider about his status as a new driver.
Usage of the Vehicle: Since you mentioned that you would only be driving the old car once or twice a year, make sure that is factored into your decision. If the car will primarily be used by your FIL, it may still make sense to add him to your policy rather than create a separate one.
Policy Terms: Check the terms of your current Geico policy, as they might have specific rules regarding adding new drivers or vehicles. Your agent can help you assess the best option based on your specific situation.
Determine the Full Costs: After discussing with Geico, get quotes for both options: adding FIL and his vehicle versus starting a new policy. This will give you a clearer picture of which route is more affordable in your case.
Overall, the most economical choice is often to add your FIL and his car to your existing policy, but it’s best to confirm with your insurance provider to ensure you’re making the most informed decision.