It is the natural progress that children are going to drive one day. Yet parents appear to be caught by surprise and unprepared when that happens. It is an expensive business to be paying for teenage auto insurance coverage. So, it deserves some attention and care. It is best to go through the options, advantages and disadvantages of each choice, so that people can make informed decisions and find affordable policies.
Adding Children to Car Insurance
This is probably the easiest solution that answers many questions at once. Since there is a car and a policy in existence adding the new driver onto it would be a quick solution to say the least. Even a new automobile is bought for a youngster or for his/her use, it can be added onto parents’ policy as a second vehicle or as part of a multicar package, as long as there is no limitation in state rules. You need to be careful when you arrange coverage for a vehicle that would be allocated for mainly their use. The carrier needs to know this fact so that they can charge appropriate rates. Otherwise, they would unknowingly be offering cheaper vehicle insurance for teenagers that could be considered as deliberate misleading.
However, the question of would it be a good idea should be discussed in light of circumstances.
· Use Parents’ Low Vehicle Insurance Rates: They almost always attract high rates. However, mom or dad’s good record and experience can offset this. Savings you get would keep the costs down. That is why this is generally the cheapest option.
· Youngsters Get Protected Better: Mature and established drivers usually keep much larger coverage. it is certainly comforting considering that there is a high chance statistically that they may crash the car.
· Use of Multi-Car Discounts: Normally adding another auto in there would cost about 10 – 20% less than getting a separate coverage that makes this option even more economical.
· Risking Parents’ Policy Perks: They are over 3 times more likely to have accidents than over the age of 20. They may also have traffic moving violation tickets in the early years as well. When they have accidents it will go against parents’ policy and no claim bonus will be lost. This will affect premiums for at least three years.
· Legal Liability: There is a chance that third parties will be able to sue the policyholder for damages caused by the teen driver. Usually, most lawyers would prefer this course of action since parents are more likely to have assets to go after. So, it is extra important to have large liability limits if you are considering adding children to automobile insurance.
· Increased Premiums: They would increase quite a bit but this may not be seen as disadvantage if parents would pay for it in any case. It would be a lot more expensive to make separate arrangements.
Buying a Separate Teen Auto Insurance Policy
This option is usually plan B, as it is usually neither cheap nor quick. However, there can be circumstances in which it is best to take this route. One of them would be a terrible parents’ driving or claims history. They may be older and wiser but this doesn’t guarantee that they will have clean records.
For example, a DUI can make it pointless or impossible to look for one package for the whole family. Maybe carriers are looking for a reason to kick them out due to too many accidents that it may not be a good time to discuss about bringing in even more undesirable risks.
Also, it may not be practical or possible to include them if parents have sports cars. Most of them would not be happy to insure a teenager with access to a sports car. Then, you would need to buy a separate car and coverage for him/her.
How to Get Affordable Car Insurance for Teens
A few tips on how to save money when you face with a problem like this would complement this topic well. Yes, premiums would be expensive but there are still ways to lower costs as long as you are prepared to do what it takes. Here are some of the methods.
Purchase Safe Cars: Underwriters may not be much comfortable with age and inexperience but they love safe automobiles. So, you would probably qualify for some discounts if you have one of those cars. You can check the safety ratings before making a purchase. At least, you can avoid making a big mistake by increasing exposure to a level that most carries consider it impossible to handle.
Alternative Coverage for Cars: This could work well if you bought or allocated an older automobile for them. It would be acceptable to get a cheaper liability only policy if the vehicle is not valuable enough to cause financial worries. If you can handle the repairs or a total loss out of pocket you wouldn’t need to pay for Collision and Comprehensive. Most multi-car policies would allow different level or types of coverage for each car in the package.
First of all, after the deductibles you may not get much from claims you make on older cars. Secondly, making a claim would make matters worse at next renewal. Some companies may ask an arm and a leg after an at fault car crash in your circumstances.
Increase Deductibles: It is a good alternative to dropping Collision and Comprehensive. Instead of losing the protection entirely, you can choose to contribute to claims a bit more out of pocket by increasing deductibles and keep the coverage. Usually, this would help in getting cheap auto insurance for teenagers.
Look for Other Discounts: Depending on the state regulations, even them can qualify for some. Taking safe driving courses is one way of getting around a 10% rate reduction. A few carriers offer more economical automobile insurance for teens, who are in full time education and doing well.
Shop Around Tirelessly: It is a common knowledge that people can save as much as 50% by finding the most competitive company for their situation. Some of them avoid certain risks like a plague while others can be better equipped to deal with them. It is up to you to find those names and avoid paying over the odds premiums no matter what are the circumstances.