Insuring a Teenage Driver

It’s a big deal when your teenager gets their first-time driving license. A mid all the celebration (and worry for the elders) about the newfound freedom, there are the financial implications to consider.

Besides the cost of buying another car, (if you want to give the teen their own vehicle), there are the additional gas bills and more importantly insurance costs to bear. Insurance is one area where it is easy to make wrong decisions. Here is a guide to getting the right auto insurance for your teenager at the right cost.

Add the teen to your existing policy

Generally speaking, it costs less to add your teen to your own auto insurance policy than to purchase a separate one for them. The better your own driving record is, and the safer and more reliable the car you drive is, the lower will be the premiums.

Additionally, the type of car the teen drives impacts the cost. If it is going to be like your own safer model or another similar one, the cost of coverage will be lower than if you buy for your teen a high-powered sports car.

Assess your deductible

The higher the deductible, the lower is the premium. Increasing your deductibles can lower the premiums; however, should an accident occur, your out of pocket will be more. With a teenage driver at the wheel, the chances of fender benders and dings and dents are high, and so be careful about using this option.

Check for discounts

Ask your insurance company about the discounts that may be available. For example, the company may reduce the premiums if the teen has an image of a good student with a high GPA. If the teen is leaving for college and will not be taking the car along, a discount may be available as there will be less driving done. Explore all possible avenues of discounts.

Choose the right vehicle

If you are buying a car for your teen, consider getting a safe, reliable used vehicle. The cost of coverage will be lower than that for a shiny brand new car.

Avoid small claims

Scratches and minor dents are going to happen willy-nilly. If you file an insurance claim each time this happens, your rates will go up. Keep your deductible in mind too; since you will pay some part of the repair cost yourself, is filing a claim really worth it?

Think about a driving school

Teaching your teenager to drive is indeed a rite of passage. However, sending the teen to a driving school, preferably one approved by your insurance company, may entitle you to a discount.

Seek professional guidance

Auto insurance involves a large number of variables, some of which are easy to misunderstand or overlook. These mistakes can leave you with an avoidable high payment schedule. Even worse, they could leave you and your teenager underinsured; that could have serious financial implications, should an accident occur.

Obtaining the guidance of a reputed professional insurance agent will give you the right inputs to make the right decisions. That will ensure proper auto insurance for the new driver in the family.