These are all contributing factors to that statistic
and for these reasons; teen drivers will generally pay more for auto
insurance than any other group.
Many states have a graduated
license program where the new driver does not get the full-privilege
license until they have gained some experience. Some of these elements
that allow the new driver to gain experience include:
1. Obtaining
a learners permit
2. Waiting for a period of time to pass before
getting an intermediate-type license
3. Getting a certain amount of
hours of supervised driving
4. Restrictions on the numbers of
passengers allowed in the auto
5. Obtaining a certain age before full
license privilege is obtained
The introduction of graduated
licensing for new teen drivers has resulted in a reduction of accidents by
this group. Most teens don't like the restrictions but better safe than
sorry. Parents are also urged to talk with the new driver about the
possible consequences of having an accident. For example, most teens don't
consider that when they are driving around in their parent's car and have
an accident that results in a lawsuit, that their parents are the one's
being sued. If they don't have a sufficient level of bodily injury
coverage then they could lose assets or possibly have a lien put on the
house. One teen night of fun out on the town could significantly put their
parents in financial distress. Most teens do not consider these grave
consequences.
Here are some suggestions on how to save some
money on the car insurance for the teenage driver:
1. Good
student discount
2. Driving school/ drivers education class
3. Get
on the parents policy
4. Reduce coverages on the car the teenager
drives
5. Wait to get licensed at an older age
Good
student discount - This discount can be significant; up to
25% or more. Typically the driver must have a B average or better grade
and be a full time student to qualify. Once they graduate from high school
they can usually qualify up until age 24 or 25 while attending college.
Once the discount is applied, you may have to re-qualify for it at a later
date and failure to respond to an insurers request will typically result
in loss of this discount. If you have had this discount in the past, make
sure that you check with your agent to make sure
that you are still getting it. It's worth it!
Driving
school/drivers education class - This discount can also
be significant; 5 - 20% is typical. Most insurance companies will want a
certain number of hours of experience of behind the wheel driving usually
equal to at least 6 hours. They also want 30 hours of classroom training
as well. Many high schools offer the "driver's education" class but do not
offer the "behind the wheel" wheel training. Parents are urged to sign
their teen drivers up for this type of program which may cost several
hundred dollars but could one day save their lives as a result. Further,
the cost of this training can usually be realized in premium savings as
the discount usually applies for several years. Sign up the new driver as
it is well worth the expense.
Get on the parents
policy - List the new teen driver on the parent's policy. The
parents usually will have had insurance with the same company for a while
and are likely getting the preferred rate with that company. Many
insurance companies also use credit as a rating tool and young drivers typically have no credit and could pay
a higher rate as a result if they have thier own policy. Simply list the
new driver on the parents policy as another driver in the household. If a
new car is purchased for the new teen operator, simply title the car in
the parents name and it can then be put on the parent's policy, listing
the teen as the driver. This automatically qualifies the teen driver for
the same type of preferred rate; although it will be much more than the
parents were paying. The disadvantage of this is that if the teenage
driver has an accident driving the parents car, the parents could be sued
and their assets are then at risk. It is advisable to make sure that a
sufficient level of bodily injury liability exists on the policy to help
cover this possibility. Consult with an agent for the proper
advice.
Reduce coverages on the car the teenager
drives - Reducing the coverage to liability only on the teens
automobile will reduce the premium significantly. Carrying collision and/or comprehensive could easily
double the insurance premium so eliminating these coverages will save you
plenty. However, these are the very coverages that will pay to repair the
automobile for a covered loss such as an accident. Newly licensed teen
drivers have plenty of them and will not have sufficient coverage to get
the car fixed if one occurs. Consider the "book value" of the car in
relation to the extra premiums that would have to be paid and make a
decision as to whether you wish to carry these coverages. Your agent can
help you with these decisions.
Wait to get licensed at
an older age - This one is pretty simple; just have the teen
driver wait until they are older to get their license and the rates will
be cheaper. Car insurance for young drivers is more expensive than car
insurance for older drivers. An 18 year old will have a lower rate than a
16 year old. A 22 year old will have a lower rate than an 18 year old and
so on. Insurance companies consider age as a relevant factor that relates
to the maturity level of the driver. Younger drivers are statistically not
as mature as older drivers.
Consider these 5 tips when adding your
teenage driver to your policy and you should be able to get a reduced
insurance rate.
The most important thing to teach the new
driver is to be responsible when getting behind the wheel at such a young
age. Of all of the things that a parent can teach a child, this one lesson
could save the child's life. Don't let them skip school on this one!
|
