Allowing a teenage driver to drive away in a car can be a bit unsettling. Realizing how much that teenage driver raises your auto insurance rates can significantly add to the angst. Teens represent the demographic with the highest risk behind the wheel, a fact which is represented in your premiums.
If it is time for you to add a new young driver to your policy, here are some tips and tricks to make it as painless as possible.
Typically, auto insurance providers do not mandate that your teenage driver be added to the policy until they have their driver’s license. (Therefore not when they are learning to drive on a permit.) However, some carriers have different rules, so make sure that you check with your insurance advisor before allowing your son or daughter out on the road with their permit.
As soon as your teenager successfully acquires their license, they should be added to your policy. While some inquire about putting the teenager on their own policy, it is generally more cost effective to add them to yours. Regardless of how you decide to assign coverage, be prepared. Due to their age, risk group, and lack of experience, their coverage will be pricey. There is no way around it, although driving classes may help in some cases.
Given the certainty that your rates will rise significantly, this is an excellent opportunity for you to review your entire insurance profile with your advisor. They may have other deals, discounts or tips as to how to save money elsewhere. Here are some ideas:
- Multiple vehicle discounts: Typically, the cost of your own coverage will drop when your policy covers multiple vehicles. So although the premium for your teen adds to the total, your discount helps to offset it.
- Classes of coverage: Ask your insurance provider if there are available levels of coverage for your teenager. For instance, some providers offer discounts if the student doesn’t have their own car, will only be driving to school and back, or isn’t planning on driving on a daily basis. Not every carrier has options, but asking may prove profitable.
- Choose the car carefully: Every teen wants a late model, sleek and sexy car. However, buying them that sports car may cost you when it comes to premiums. Teenage drivers will get the best rates when driving a car with top safety ratings. They may not want a practical car, but it may be a solution until they are paying their own way.
- Reassess your coverages: If looking for ways to save on monthly premiums, you can reassess your other cars on the policy. Do they still require collision or comprehensive coverage? Typically, as a car ages these types of coverages can drop off to save you some money. Be sure to discuss the ramifications of dropping these coverages with your insurance advisor.
Take this opportunity to ask about any other discounts you may be qualified for – or if there is a better carrier option for you since last you obtained coverage. At Ezzi Insurance Advisors, we take pride in educating each of our clients as to the full range of options available to them. Whether a safe driver discount or a plan to bundle your home and auto policies together, we are always working to find the best solutions for you.
Call Ezzi Insurance Advisors today for a free quote and to discuss your options – and good luck with that teenager!
