Teens would be very excited to start driving once they pass their tests. But parents may be worried about possible premium increases. After all, they have been hearing how expensive insuring young drivers can be. Many parents would have a sudden shock to see how much adding a child can affect their premiums. Probably they were enjoying great rates for years until their children comes to age.
It is better be proactive when you have a new driver in the house rather than reactive to expensive quotes. Various ways of making sure you get the best quotes are discussed below. So, let’s have a look at a few ways of insuring them.
Adding Teens on Family Plans
This could be a good solution for the time being and certainly in the first year or so. This way they can get some behind the steering wheel experience that can make it easier for them when they want to buy their own policies. Here are a few reasons why this would be a better option for you.
Sharing on the Savings: Parents would qualify for a few discounts. They can claim savings with clean driving history and no claim, married, homeowner and having good credit record. These savings will reduce the burden of higher rates for adding a youngster to policies.
Loyalty Discounts: If you are with your carrier for some time they would probably offer you loyalty discounts. This will reduce your overall cost about five to ten percent that will allow you to get more economical car insurance for youngsters in your family as well. It will be a few years before they can claim such discounts on their own.
Multi-car Policies: If your child has his/her own automobile they can benefit from discounts offered under the multi-vehicle policies if they can be included in the family plan. Having several vehicles under one policy can provide you discounts that a young driver can benefit from. You need to think about the auto ownership in this case as some states may insist on seeing the auto owner’s name on the documents too. But this can be overcome with a little planning or buying joint auto insurance policies.
Sharing Automobiles: When children are included in family plans you can share autos in the family. It may be possible for parents to exclude teenagers from their policies if they have their own car and insurance, depending on the state you live and carrier you apply.
Buying a Separate Auto Insurance Coverage for Youngsters
In some cases it may work out cheaper to purchase a policy for them and it may be more desirable. In any case, it is best to explore all your options before making a final decision since large sums of money at stake. Here are several reasons why it may be a good idea to get them their own coverage.
Expensive to Insure Autos: If parents have a high risk automobile it may not be cost effective to add a teen on and in some cases it may not even be possible. Many providers wouldn’t cover them with a sports car.
Parents with Bad Driving Records: A serious traffic violation like DUI can make parents’ policies expensive that there may not be any benefits of adding a child onto their cover. We have seen above how parents’ discounts would help to get cheap vehicle insurance for teenagers. Here we would see the opposite. You would be multiplying high risk with higher risk.
Separate Address: Your son or daughter may be staying in the college and keeping the car there most of the time. In that case it may be complicated to add them onto a multi-car policy. Then, you should talk to your provider and get discounts for buying another one from them. You can look at other discounts like savings for paying full premium and discounts for having a recovery service contract from companies like AAA.
Financial Independence: Some juniors may want to deal with their own expenses and want to establish their own history at early ages. Personal choices have to be respected and most parents would welcome a child who pays for himself/herself.
You should get quotes for both insuring your children under your coverage and buying them a separate policy. Then, it will be easier to see which option offers cheaper. If the savings are not great you might as well get them their own policies. In that case, your policies wouldn’t be affected if they have to make a claim in the future.