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For a teenager, getting a drivers license is a pretty big deal and an exciting milestone. Your young driver is certainly anxious to take to the road, but as a parent, you may not be excited for the high cost of insuring your teen.
Can I Afford My New Driver?
Young drivers are expensive. Such drivers, particularly teenagers, frequently cause traffic accidents because of their lack of experience and because, due to their youth, they tend to be distracted, risky drivers. If your household is about to add a new driver, make sure that he or she understands that, besides endangering themselves and others, poor driving habits can result in higher premiums or a canceled policy. Here are some methods to help minimize the auto insurance cost of a new driver:
- Have your child complete a driver training class. The class’ cost is easily offset by lower insurance premiums. You also gain a more competent young driver.
- Ask your insurer if it gives discounts to students with good grades.
- URGE against texting and driving
- Find a company that charges a rate according to the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.
- Try to discourage or delay your child’s driving to school. Insurers charge a lower premium for less frequent driving.
- Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver’s first accident or minor traffic violation.
- Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.
- If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its’ insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
- Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance the considerations of convenience, cost and safety.
Don’t pursue lower premiums blindly. It’s important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy.
To talk to an insurance expert about more strategies to keep your new driver affordable, contact our office, LG Insurance Agency. We are your local Jersey Shore insurance agent, working to find the right coverage at a low price for our customers.
COPYRIGHT: Insurance Publishing Plus, Inc. 2014
All content provided in this blog is for informational purposes only. Topics discussed on this blog related to insurance products and issues in a general application, and are not an offer of insurance, a guarantee of coverage, or applicable to specific and individual circumstances. Contact LG Insurance Agency for questions and information specific to your insurance needs.
