It is normal for parents to worry when their teen gets behind the wheel for the first time. What is more frightening are your insurance rates increasing. Fortunately, we have ways for you to keep your teen drivers safe and save money on increased premiums.
Why Teen Drivers Have Higher Insurance Rates?
New drivers have higher rates for two main reasons—inexperience and immaturity. Teen drivers tend to take more risks and mistakes than drivers who have had experience for years. Statistics from teendriversource.org can confirm this statement. “Motor vehicle crashes are the leading cause of death for U.S. teens—in 2013 six teens aged 16-19 died everyday as a result to motor vehicle crashes.” They are going too fast for road conditions or are distracted by something inside or outside the vehicle. Despite car crashes dropping dramatically since the mid-1970s, motor vehicle accidents remain the number-one cause of death for teenagers.
Should I Add My Child To My Policy?
It is entirely up to you. Either way your child needs insurance whether it is their own policy or on your existing one. If your teen wants a policy of their own, it will most likely cost more since they won’t have the benefits from all your car insurance discounts. If your premiums are too high from adding them, you could remove them completely if they are not going to ever drive. Keep in mind that his or her driving record will affect your rate and if they absolutely need to drive, uninsured, that could lead to denied claims, tickets, and fines.
Cut Insurance Costs
You can prevent your auto premiums from skyrocketing with a couple of these key moves:
Get A Safe Car
Teens, as stated above, are more expensive to insure. Buying used cars or holding onto cars that are already in your possession is a smart plan. When we say used cars, we mean cars that are safe, but a bit seasoned. If your child is involved in an accident, it will be less expensive than an accident in a brand-new vehicle. To find out how safe your car is, take a look at NHTSA. They use a 5-Star Safety Ratings program to evaluate how vehicles perform in crash tests.
Good Grades
Most insurers offer discounts ranging from 10-20% (depending on insurers and state) for drivers who maintain a minimum B average in high school or college (12 credits). Also, talk to your insurer about other discounts that are available. Some insurers offer discounts to teens who take driver safety courses and meet a requirement of hours. Most teens can take this class before they take the test for their driver’s permit.
Teen Going to College
If your child is attending college more than 100 miles away and are not able to use or take their vehicle with them, most insurers will give you a big break on your premiums. Even when your child comes home for vacation, their vehicle will still have coverage.
When to Increase Comprehensive and Collision Deductibles
When you raise your deductibles to around $1,000, it lowers your premiums and prevents you from filing small claims that could jeopardize a claims-free discount. What you want to do is add more money to your emergency fund if possible. You’ll end up having cash to pay the deductible if there is an accident.
Protecting your new
teen driver with the right auto insurance provides security: for your peace of mind, as well as saving you from increased rates. At TJ Woods Insurance Agency, we go the extra mile to ensure your family is provided with the best insurance possible for everyone’s safety. If you want to discuss the right plan for your family or other possible discounts not discussed in this article, contact TJ Woods Insurance today.
