Safe driving will take time and experience for a teen to learn. If parents are looking to add a teenager on their insurance, they will need to educate themselves. Parents need to understand how they should add their teen to their insurance and the factors that go into determining the cost of their policy premium.
Adding someone to your policy?
Individual states may have different laws and different companies may use their own guidelines, so you should check with an agent to make sure you know what laws in your state apply. A lot of companies will allow you to have a teen on your insurance with just their learner’s permit at no extra charge until they get their license, but this is not always the case. Make sure you ask an agent before your teen gets their permit just to make sure, and you can also inquire at that time about the cost of adding a teenager to your insurance.
Getting the best deal on car insurance for your teen.
A big surprise to parents can be the added cost for all vehicles on your insurance, not just on the vehicles your teen will usually drive. There may be some discounts that parents can take advantage of. Good student discounts are one for the individual teenage drivers. The whole family can enjoy certain discounts, such as low mileage and utilizing a program that monitors how your teenager drives. Take the time to talk with an agent to seek out all the possibilities. Discuss these things with your teenager so they understand how their actions can have an impact on the family’s budget.
To save money, a lot of people will bundle different insurance together, like their auto and home. It can be advisable that parents make sure their teens help with the added cost even though they may not be able to do so financially.
Make certain that your teen understands that if they earn good grades it can assist with the cost of insurance. Having good grades can have a noticeable difference.
More options for cheaper insurance for teens.
– Make the best car choice. Getting a teen a sedan, minivan or SUV can potentially get you the best insurance rates for them.
– Sharing is caring…and cheaper. While your teen is very young it can be a good idea to share a vehicle instead of putting another vehicle on the policy. By adding the teen as a secondary driver on your policy you can save a lot versus having them as primary on a vehicle.
– Wait on getting their license. Since insurance costs are so much higher for younger drivers it can be advisable to wait until your teen is 17. If it is not necessary for them to be licensed at 16, waiting that extra year can have noticeable savings.
– Increase the collision deductible. Raising your deductible for your comprehensive and collision from say $500 up to $1,000 can save you money on the monthly premium. You have to remember that if an accident happens your out of pocket expense will obviously be more. One thing you can do to possibly reduce your out of pocket expense is to set up something called vanishing deductibles on your policy which will allow you to build credits toward your deductible. You can start doing this a few years prior to your teen getting licensed.
To save money make sure you talk to an agent before buying a car and make sure the car you choose is sound mechanically but is a bit dinged up. The cost to insure and to repair a newer car will be a lot more.
Teenagers will always be more susceptible to accidents, sometimes just because they are around a lot of other teenage drivers who could cause accidents that are not your teenagers’ fault.
The best thing to do is talk to an agent to see what options are available for giving your teen coverage on your existing insurance.