When considering car insurance, one of the most important factors to look at is how many drivers you anticipate having in the household over the next few years. Teenagers in particular have a huge effect on the monthly cost of insurance. According the the insurance information institute, one teenager can increase your rates by 50, even up to 100 percent. While your child may be excited to get their license, all the extra costs, not to mention having your teen behind the wheel, would understandably give any parent the jitters. Planning ahead and choosing the right coverage can help with the transition.
Some Insurance Variables
Being specific about all the variables when choosing a policy can help your broker narrow down the options. For example, most insurances differentiate between the genders. Insuring a teenage girl is significantly cheaper than insuring a teenage boy. Perhaps this is because girls are thought to be more responsible, despite the fact that girls have been found to text while driving more than boys, and are are twice as likely to use electronic devices. The texting phenomenon has been found responsible for one in four accidents in the U.S., so knowing your child’s phone habits can help you decide what level of potential coverage you want to choose.
Region also has a big effect on cost– some areas are pricier than others.What type of vehicle you are insuring of course will also affect your bottom like, so if you are considering buying your teen a car, check out all the safety features, including anti-lock brake system (ABS), rearview cameras, and rankings before purchasing their dream car.
Some Money Savers
While having an extra driver can be useful for the occasional errand, and finally not having to cart them around all the time can be a blessed change, the change on your insurance pricing is probably not as welcome. Like it or not, your teen will have a huge effect on your anticipated costs. Yet there are a number of steps you and your child can take to save money.
For young drivers, taking a drivers safety course is always a good idea. Not only does it create more responsible driving, courses may qualify them for lower insurance policies.. Talking to your child about road safety, reviewing tips and good practices is good parenting and a way to keep premiums down. Less accidents mean lower costs, so setting an example for road safety and patient, cellphone free driving can prevent accidents, which are both dangerous and can significantly raise the cost of car insurance.
Making sure your child knows how to handle accidents can end up in lower costs in the long run as well, and has the added benefit of putting your child at ease in a scary situation. In the unfortunate event of an accident, knowing how to accurately record the event, being familiar with state requirements in regards to whether or not to move the car, and not accepting fault, even when pressured, will help to accurately portray the incident, and potentially find them free of blame.
Another potential money saver is a good student discount. Many insurances will lower the cost of insurance for students who can prove a grade average of B or above. This discount could be valid until your child goes to college or even into their twenties, so enjoy another excuse to take out that shining report card.
Finally, if you are buying a car for your new driver, consider the option of buying them a used car. Because teens have such a high likelihood of being in an accident, insurance companies, are wary of their costs when it comes to fixing brand new vehicles. Buying a sturdy old car with good safety ratings will likely lower monthly fees, and mean cheaper repair costs.
With all these variables and potential money savers, having a broker by your side who knows the ins and outs of your region and family structure can save you hundreds of dollars. Talk to our brokers about your options, and let them help you find extras like multiplan discounts and other insider tips.