Having a teenage driver is a nerve wracking experience. Your teen lacks practical experience behind the wheel and insurers are aware of this fact.
As your teens are new drivers, how much does adding them to your car insurance cost?
Teen drivers are classified among the highest risk groups by auto insurance companies. They are more likely to drive recklessly without considering other motorists due to the fact that they have never felt such freedom.
As a result, insuring your teenage driver can be an expensive affair. If you haven’t considered the impact of a new addition to your policy, expect your premium to increase.
The good news is that high rates do not necessarily mean that you have to break your bank.
This article will help you understand some strategies you and your teenager can use to keep those premiums low. These include:
- Good Grades Discount
- Include Child In Auto Insurance Discussions
- Take Defensive Driving Course
- Shop Around For The Lowest Rates
Good Grades Discounts
A good grades discount is meant to reward students for excellent performance in school.
Statistics show that top performing students are less likely to cause an accident. Auto insurers consider them as lower risk and offer savings on their premiums. Some insurers are known to continue the discount for a year after the student has completed school.
The discount rate varies from different insurers and states. It is a wise idea to visit many auto insurers to compare these rates tol end up with the most substantial discount with sufficient coverage.
To qualify for the discount, most auto insurers require the student to fulfill the following:
- Be a full-time student at a high school or university/college.
- Maintain a score of B average or be on the Dean’s list.
- Be under 25 years.
- Provide proof of good performance if schooled at home.
- Provide the report card.
- Evidence of a signed letter from your school’s administrator (depends on insurer).
If your child’s grades do not qualify them for the discount, you can help and encourage them to work hard and get the qualification. Once the grades are up, you can visit your insurance company and ask for lower rates.
Include Child In Auto Insurance Discussion
Talking to your teenager about insurance and how it can save you money is necessary. As a parent, you are aware of the value of your car insurance when appropriately used.
Aside from saving money, it is vital to pass on your knowledge and experience to your children.
As you prepare to hand over the car keys, discuss with your child the following factors:
- What auto insurance involves.
- When you should call your agent.
- Talk about how deductibles work.
- How to avoid auto claims.
What Auto Insurance Involves
Explain that auto insurance is a required policy that protects drivers on the road. The insurance policy will also protect against significant financial loss.Further, explain that the loss might be caused by accident based on who caused it, what happened.
When You Should Call Your Agent
If an accident occurs, explain to your teen that he/she should make sure all parties involved are not seriously injured. Report incidents to the police as soon as possible. After that, inform the insurance company of the accident and you will be guided through the next steps.
Talk About How Deductibles Work
Let them know that a deductible is an amount a policyholder (yourself) is supposed to pay before the insurer pays a claim.
Ensure that they understand the inverse relationship between deductibles and the cost of the premium.
How To Avoid Auto Claims
Speeding kills. It is essential for your teen to realize that the early years of their driving life are the most dangerous on the road. Auto wrecks are one of the largest risks every individual is exposed to on a daily basis. If your child is an accident magnet, ensure they are aware that filing many claims will significantly increase the cost of your vehicle insurance.
Discuss ways they can avoid claims by following all traffic laws. These include not only speeding, but also the dangers of tailgating, texting while driving, and driving under the influence just to name a few.
If possible, introduce your child to your insurer before adding your child to your policy. This will help build a relationship and provide your child the confidence to interact with these individuals regarding this complex process.
Take Defensive Driving Course
Some insurers require young drivers to take the defensive driving course. These insurers offer a discount to teens who have completed this course.
It is recommended for your child to take a course even if your state does not require it. This course will help them avoid accidents and notice when they are in a potentially dangerous driving situation.
Keep repeating the basics of driving to your child until they master them.
Shop Around For The Lowest Rates
It is important to shop around and compare insurer’s rates for your teenage driver. The insurer who offers you and your spouse good rates might have higher premiums for teenage drivers.Adding your child to your policy will affect your premiums, but it is best to shop around to understand the complete effect.
One company may be great with young drivers, and another might be horrible. Compare prices from several insurers annually or visit an independent agent for personalized service.
Do not be afraid to ask your insurer for better rates when your child has maintained a clean record.
Though teenage driving is risky, ensuring you have the appropriate coverage for your children may provide some extra comfort in knowing your child is covered should an accident occur. Having discussions about speed and intoxicated driving should also help your child be aware (and hopefully want to) avoid any accident situation.