There are a few discounts available for families. To start with, married drivers get on average about 5% cheaper auto insurance rates. They can have a little more savings when they own their home but they can save about 10% when they bundle their home and vehicle insurance. If they have more than one automobile, they can consider arranging multi-car policies, which can reduce premiums as much as 20%. So, the overall savings can add up to give families a good premium relief.
Generally, married people who live in their own home are considered safer drivers. That is why they enjoy good discounts and they can increase these savings by shopping around to find the most competitive insurers for their particulars.
When children come to driving age things start getting really expensive for families. According to III, teenagers can increase family auto insurance costs at least 50% and often premiums can go up more than double. Most experts agree that adding teenagers onto parents’ policies is still cheaper than arranging a separate policy for them.
This is the best time to start looking around for the best rates for families as you can reduce costs more in terms of dollar amounts by shopping around when they are high. According to Zebra, these are the cheapest automobile insurance companies for families with teen drivers, in the order of competitiveness; Nationwide, State Farm, GEICO, Farmers, Progressive and Allstate. This order may change in time and depending on your state. So, get quotes from all of them and a few others.
If families have more than one vehicle, the number of ways they can insure them increases giving them some flexibility. Especially when they have a young male driver in the family, they may be able to allocate the older car for him and insure it separately for liabilities only, if its value is low enough. This way, they can reduce the effects of such a high-risk driver on other policies and protect their accident free and good driver discounts in case the youngster has an accident.
According to experts, it doesn’t cost a lot more to separate teen drivers’ policies if they are already included in parents’ coverage. They can still insure all the vehicles in the family under a multi-car insurance and reduce the impact of having a separate coverage for the higher-risk motorist. This is a highly effective strategy often used by many families in the US.
Parents would be charged substantially higher rates whichever way they arrange their policies when they have a teenage child to insure. However, they can bring overall automobile insurance costs down by qualifying for all the discounts they can get. Being married, a homeowner, bundling, having good credit scores, clean driving and accident records are all great qualities and allow them to save money to counteract against the increased rates due to high-risk drivers.
Also, good student and safe driving course related discounts may be qualified by one person but it is applied to their policies and other drivers on it benefit from it as well. That is why looking for over 50s discounts with AARP or membership discounts with AAA or even Costco are some of the handy discounts, which may be easier to qualify for but save a lot of dollars when a family is paying thousands of dollars a year for insuring their vehicles.
Major Benefits of Family Car Insurance Plans
Sharing is an important part of being related. What if you could share a bit more by passing around the savings. Here are some of the key benefits of these plans.
- A sizable discount received by a parent can be applied to other members. For example, if you get discounts by arranging multi-car insurance coverage or bundling policies, they are applied to every driver and car in the plan.
- They can still keep their own savings. For example, a student member can still qualify for low student rates on top.
- Discounts can be as much as twenty percent, which is great for getting the cheapest insurance for teenage drivers who wouldn’t otherwise qualify for them. It would mean a lot of dollars on a teen driver premium.
If multi-auto policies aren’t possible or favored, households can look into other ways of reducing insurance premiums for everyone. Many carriers can cover homes, cars and motorcycles and they offer savings when a current policyholder brings in another piece of business to them. It is a good way of keeping a few extra bucks in the pocket and insurers get the opportunity to sell more. If you know a carrier and are happy with the service and price you would naturally want to move other policies to them as well. This way, they may not save as much as having one policy for all the cars and drivers but they can still save some money.
Furthermore, it appears that when people have children they drive a lot more carefully for two reasons. One, they may have a loved one with them in the vehicle and they do not want any harm to come to them. Two, they are worried about the wellbeing of their family and understand the consequences of accidents. The unit would suffer if the bread earner was injured or died in an accident.
This attitude of responsibility and statistical data convince auto insurers to offer lower rates for married drivers with children, although it is a fairly modest discount in comparison to the other options discussed above. So, don’t hesitate to mention to your insurer that you are a family now.
This is being proactive at work at its best. No matter how bad the circumstances look and how expensive the initial car insurance premium quotes are you need to look for ways of cutting them down. Surcharges for being inexperienced and young have to be countered by discounts parents earned over the years diligently. Then, it may be easier to manage the costs.
As well as costs, practicality of the arrangements needs to be taken into account. And those arrangements will need to be reviewed as circumstances change. Wherever possible using the older, more experienced and safer driver as the lead insured can bring down overall costs, especially if that person is a female. Taking advantage of every little opportunity leaves more money in the coffers.