Teen Driver? How to Avoid the Premium Shock on Your Auto Insurance.
Adding a driver is the best time to compare rates.
The time has come. Your teenager is about to be behind the wheel, or they already are. If you've already been through this, you know shopping premiums are not for the faint of heart. No. Quite the opposite. Short of making your child hold off on this right of passage, how can your wallet survive this awesome change in your teen's life?
Here are some options to keep in mind when insuring your teenage driver.
Add your teen driver to your auto policy.
Rather than taking out a new policy for your teen, you can add them to yours. This will help to reduce the rates, especially if you have a good driving record and your teen is in a safe and reliable vehicle. Remember, the type of car they will be driving will impact the kind of auto insurance rate you will have. Although that convertible top or sports car they're begging for may be tempting, your wallet may say otherwise.
Ask about discounts!
Do you have the "My Child is on the Honoroll" sticker on your vehicle? A discount may be available. Many insurance companies reward you with a "Good Student" discount.
If your child waited a while before getting their license and they are heading off to college without a vehicle, there could be a discount there too.
It's a good idea to discuss discount options with your agent.
Increase your deductible.
It may not be ideal, but raising the amount you pay out of pocket before your insurance covers the rest will reduce your premium.
Pay out of pocket for minor damages.
"Oops, my bad. That mailbox came out of nowhere". The mailbox is safe, but the vehicle has a big scratch. For any claim to your insurance, the rate goes up, especially within the first year of driving. That would be the ideal option if you can afford to fix it.
Always emphasize safe driving practices. It's a good idea to discuss safety and driving with your teen. Never text and drive. They should stay off the phone while driving, and you can talk about finding a safe place to pull over to use the phone if it can't wait until they reach their destination. Ensure they obey the speed limit and all traffic laws. Avoid any distractions while behind the wheel. The longer they go without an incident, your rate will decrease.
Your nerves and your teen may do well to go to driving school. Check with your agent to see if they would suggest any driving schools in your area. This may, again, reduce your rate with a discount.
Choose the vehicle carefully.
As mentioned above, the type of vehicle you choose can impact the rate you get. It may be nice to get them the shiny newer car with all the bells and whistles. However, a sturdy, reliable vehicle older than five years with four doors is a better option for a lower rate.
A PLUB may be a good option.
So what is a PLUB? It is a Personal Liability Umbrella Policy. This is an extra layer of coverage to the insurance policy that you already have. If an accident exceeds a specific limit, you must pay to cover the rest. The PLUB will cover the damages up to its specified limit.
In Conclusion, insuring your teen driver is a must. Having a good insurance company and an experienced agent is also a must. If you would like to compare rates or start the process of insuring your teen driver, we can help!
Our advice and consultations always come at no cost to you.
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