Splitting Up A Family Car Insurance Bill In A Fair Way
Splitting up a family car insurance bill in a fair way does not have to be a daunting task. Though factors can vary depending on your individual household situation, a few considerations are common. These include the age, driving record, schedule and type of vehicle owned by each individual on the policy.
Rates can vary for different age groups. For example, newly licensed young drivers are sometimes charged higher rates than more mature members of the household. When splitting car insurance bills within a family, take into account how much extra it really costs to have an individual on a policy. On the other hand, depending on the circumstances in your household, teenagers with a part-time minimum wage job, or the elderly on a fixed income may not be able to pay as much as others.
Claims and moving violations raise rates. For example, if you have an accident or get a ticket that increases your policy premiums, splitting up a family car insurance bill in a fair way means that you would pay the extra amount. It works the same way for the member of your household who lowers the rates on the policy with impeccable records or by taking courses such as defensive driving.
The specific type of vehicle that each family member owns also comes into play when splitting car insurance bills. For example, a vehicle that has a security interest, such as a loan through a bank, requires full coverage insurance. Some cars are known to have higher rates in general, such as bright red and fast sports cars. If two or more family members share one car, that will also lower their individual payments toward the entire policy.
The amount of time that each person spends driving also should be considered when splitting up a family car insurance bill. For example, if you drive back and forth to work every day, many states require additional coverage versus just pleasure driving. If your mother only uses a vehicle to go to the doctor’s or beauty salon once a week, she would pay much less than your son who not only drives to school, but also to work and weekend jaunts.
Splitting car insurance bills in a way that everyone in the household feels that it is fair should be done in a family meeting session. Write down the numbers on paper for everyone to see and agree upon. Ask for a detailed printout from your insurance company or agent in order to figure out exactly how all the different variables add up to the total amount.