Automotive

SOLVED [Ontario] Car Ownership and Insurance questions - for drivers still living a home with their parents

  • Last Updated:
  • Sep 11th, 2017 11:14 am
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes

SOLVED [Ontario] Car Ownership and Insurance questions - for drivers still living a home with their parents

We currently have three vehicles in the household with only two drivers as my daughter still has a G1 license.

Cosmic5, our RFD resident insurance broker was nice enough to advise me to ask my insurance company if she can only be rated on the one car that she will be driving. With TDMM, because there will be three drivers, one of us will be assigned to each of the vehicle. It will drive the insurance on this one car to about $2,900 when it is currently sitting at $700 or so.

Cosmic5 also confirmed that I could transfer ownership to my daughter and then have her apply for her own insurance policy. I tried simulating this using Sonnet's online quotes and noted the following:
  • If she is the only driver, she will pay around $250/month, which is about the $2,900 TDMM is quoting me
  • If I add myself as an additional driver to her policy, the premium drops to around $140/month.

Question 1: Am I really allowed to be included as an additional driver in her own auto insurance policy? My driving record seem to make her insurance premium drop by at least 40%.


Also it seems I am left with two options:
  1. Sell my beloved 02 Civic and maintain the remaining two vehicles in the next year or so. Most likely purchasing a BEV in early 2019 if the $14k rebate is still intact.
  2. Sell the Civic and get her a used vehicle subsequent to getting her an independent insurance policy. In this case, I would get a vehicle with electronic stability control and a few other safety features. My Accord coupe has less visibility and only have ESC as a tech nanny and it's almost considered full-size.

Question 2: Which of the two options would you take as a parent? As a child, of course I would like to have Option 2. :)

I like the flexibility of a third vehicle but I really don't go out much besides to and from work but I like the convenience of having a beater car to drive to the Go Station. We have a toddler who attends daycare now but will be in JK in September so in terms of emergencies, maybe the older daughter will be able to pick her sister up. My current boss and colleague are very considerate so it's not like I cannot take the Go Train, pick the daughter up and work from home.
Last edited by alanbrenton on Sep 6th, 2017 11:23 am, edited 1 time in total.
15 replies
Deal Addict
Aug 24, 2007
2271 posts
1749 upvotes
Ottawa
I might be wrong but I thought G1 drivers don't need to be reported on the policy?
Deal Addict
Mar 10, 2009
2354 posts
145 upvotes
Mississauga, ON
Let your daughter use the '02 Civic for a couple of years. *if* she ever ding/scratch/damage during her first couple years of driving .. you wouldn't be feeling bad about it or as bad if she does something to your "newer" vehicle
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes
Chrno wrote: I might be wrong but I thought G1 drivers don't need to be reported on the policy?
You aren't wrong. I just had TDMM run another simulation. I think you advice them of the G1 but not until they get G2 that they have to be put on the insurance policy.
win-star wrote: Let your daughter use the '02 Civic for a couple of years. *if* she ever ding/scratch/damage during her first couple years of driving .. you wouldn't be feeling bad about it or as bad if she does something to your "newer" vehicle
Haha, I wish, it's 5 MT and she has no intention of learning to drive one. I love it though as I always think of driving as an extension of my mobility and it does have A/C and I just do oil changes and various filter changes so it doesn't cost much to run. It doesn't even have ABS so if she gets into an accident, I will get screwed. We have 5-year replacement cost guarantee on the 16 RAV4 and accident forgiveness so it makes sense to have her drive that car. She is also probably safest in there in a bigger accident.
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
although there is no premium on a G1 driver, they still need to be disclosed to the insurer
Chrno wrote: I might be wrong but I thought G1 drivers don't need to be reported on the policy?
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
sounds like the online quote is rating you as primary, her as occ'l..
call the Broker and ask them to do the quote for you so its done correctly and you have the correct information/premium.
alanbrenton wrote: We currently have three vehicles in the household with only two drivers as my daughter still has a G1 license.

Cosmic5, our RFD resident insurance broker was nice enough to advise me to ask my insurance company if she can only be rated on the one car that she will be driving. With TDMM, because there will be three drivers, one of us will be assigned to each of the vehicle. It will drive the insurance on this one car to about $2,900 when it is currently sitting at $700 or so.

Cosmic5 also confirmed that I could transfer ownership to my daughter and then have her apply for her own insurance policy. I tried simulating this using Sonnet's online quotes and noted the following:
  • If she is the only driver, she will pay around $250/month, which is about the $2,900 TDMM is quoting me
  • If I add myself as an additional driver to her policy, the premium drops to around $140/month.

Question 1: Am I really allowed to be included as an additional driver in her own auto insurance policy? My driving record seem to make her insurance premium drop by at least 40%.


Also it seems I am left with two options:
  1. Sell my beloved 02 Civic and maintain the remaining two vehicles in the next year or so. Most likely purchasing a BEV in early 2019 if the $14k rebate is still intact.
  2. Sell the Civic and get her a used vehicle subsequent to getting her an independent insurance policy. In this case, I would get a vehicle with electronic stability control and a few other safety features. My Accord coupe has less visibility and only have ESC as a tech nanny and it's almost considered full-size.

Question 2: Which of the two options would you take as a parent? As a child, of course I would like to have Option 2. :)

I like the flexibility of a third vehicle but I really don't go out much besides to and from work but I like the convenience of having a beater car to drive to the Go Station. We have a toddler who attends daycare now but will be in JK in September so in terms of emergencies, maybe the older daughter will be able to pick her sister up. My current boss and colleague are very considerate so it's not like I cannot take the Go Train, pick the daughter up and work from home.
RIBO LICENCED INSURANCE BROKER, over 35 years experience
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes
Looks like getting rid of the Civic makes the best financial sense as leaving her on my policy or setting her up for an independent one leads to no savings. :)
COSMIC5 wrote: sounds like the online quote is rating you as primary, her as occ'l..
call the Broker and ask them to do the quote for you so its done correctly and you have the correct information/premium.
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
you also have the option of just keeping fire & theft on the civic... then if you decide in the future to put her on as primary, you'll still have the vehicle..
alanbrenton wrote: Looks like getting rid of the Civic makes the best financial sense as leaving her on my policy or setting her up for an independent one leads to no savings. :)
RIBO LICENCED INSURANCE BROKER, over 35 years experience
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes
My Civic insurance is $585/year and although I can't see the break down, I think the last time I asked months ago, the comprehensive and collision are only $80/year or less so I decided to just leave them on.
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
I was referring to reducing coverage to comprehensive only.. Smiling Face With Open Mouth And Smiling Eyes
alanbrenton wrote: My Civic insurance is $585/year and although I can't see the break down, I think the last time I asked months ago, the comprehensive and collision are only $80/year or less so I decided to just leave them on.
RIBO LICENCED INSURANCE BROKER, over 35 years experience
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes
COSMIC5 wrote: I was referring to reducing coverage to comprehensive only.. Smiling Face With Open Mouth And Smiling Eyes
Brilliant. I never would have thought about putting her as principal on a car she may never drive. Didn't know I can skip the personal liability portion. Maybe I should remove collision too. :)
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
having a vehicle with comp only, you won't have to have her as principle on any :facepalm:
when you reduce to comp only, you remove liability & collision...
alanbrenton wrote: Brilliant. I never would have thought about putting her as principal on a car she may never drive. Didn't know I can skip the personal liability portion. Maybe I should remove collision too. :)
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Addict
May 10, 2011
1373 posts
440 upvotes
Ottawa
COSMIC5 wrote: having a vehicle with comp only, you won't have to have her as principle on any :facepalm:
when you reduce to comp only, you remove liability & collision...
I thought if you remove liability you can't legally drive the car anymore??? Are you talking about if OP put the car in storage? I thought OP said he want to drive it to the GO station...
[OP]
Deal Expert
User avatar
Apr 21, 2004
54104 posts
19005 upvotes
COSMIC5 wrote: having a vehicle with comp only, you won't have to have her as principle on any :facepalm:
when you reduce to comp only, you remove liability & collision...
Got it. Now it's crystal clear.

It doesn't seem to be a very well known maneuver (tried to search on the web and none of them included this advice) so thanks so much for the tip and my apologies for my ignorance and stupidity.

I know this won't apply to the Civic (since you suggested I drop the liability and collision on it) but I'll read more into it during the weekend.
https://mitchellwhale.com/auto-insuranc ... e-ontario/
Deal Fanatic
User avatar
Aug 11, 2008
8759 posts
1379 upvotes
Ontario
thats the point. comprehensive coverage = fire & theft
csi123 wrote: I thought if you remove liability you can't legally drive the car anymore??? Are you talking about if OP put the car in storage? I thought OP said he want to drive it to the GO station...
RIBO LICENCED INSURANCE BROKER, over 35 years experience

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)