Reader question:

Can I add my teen daughter to our car insurance policy while she still has her learner’s permit?

Ellen

Yes, you can, Ellen.

Most insurance companies will cover young drivers who still have not obtained their driver’s license, but the cost is steep, sometimes as much as 200% more than an adult’s. This is because the risk is high, especially with a driver who may not understand the importance of a full stop yet. Still, considering that same risk, it’s better to add your teenager than not, and the best way to go is to let the price go up on that end, but cut the costs in other ways.

• Watch the gradebook. Teenagers with good grades in school usually qualify for a discount on car insurance. It’s a good incentive for your kid to do well in school as well. What’s that? Can’t study for your test, can’t drive!
• Make them take a driver’s ed course. This takes the rate down by up to 15%.
• Make sure your insurer isn’t acting up. Some insurers will raise your rates by assigning the highest risk driver on your policy to the most expensive vehicle. This is not nice. If you catch your insurer doing that, find another one.
• Get them an older car. Sure, they may think it’s a shame, but it will save you money and might encourage them to be more careful.

Cheers,

Fashun Guadarrama

Reader question:

I have a 16-yr-old teen driver. How soon should I be getting them car insurance?

Martha

ASAP, Martha.

When it comes to teens and car insurance, the sooner and the more the better is what I say, and the American Insurance Association is inclined to agree. When they’re at such a young age, teenagers are not only subject to the more reckless behaviors of youth, but they also are new drivers who, though they may have passed their driving test with flying colors, are still very inexperienced on the road and not inclined to react correctly to more dangerous situations. Not to mention, they’re more like to be driving your car.

Because of these reasons, it’s the best idea to add your child to your insurance policy as soon as they get their license. You should notify your insurance company once your kid gets his permit, and then again once he gets his full license. In most states you’ll even be able to cover your child while he has just a learner’s permit under your policy.

Cheers,

Fashun Guadarrama.

Reader question:

My teenage daughter just got her license so we’re looking for a car. We want something safe, but also something that won’t hurt our insurance rates to much. Any advice?

Sharon

It’s important to get your kid into a safe car.

Lots of parents fret when their teenager comes to that time in life where they’re finally allowed to operate a motor vehicle, because once they get there it seems that’s all they can do.

This causes a lot of worry, because teenagers aren’t exactly known for their ability to behave safely and make great decisions. The worry also comes from a rise in insurance rates from adding a younger person to your policy. Because of these reasons, it’s important to think about the kind of car you’ll be getting for your teenager.

• Stay away from flashy sports cars that go fast. That’s basically your teenager’s car dream, but cars like these encourage risky behavior and you don’t want to get something that encourages your kid to drive faster. A vehicle that’s more sedate will lower the chances of your teen getting in an accident related to speed quite a bit.
• Get something stable. SUVs, the smaller ones especially, are very unstable because they have higher centers of gravity. Because of this, the more abrupt way of driving caused when a new driver is over-compensating for a steering mistake or just messing around can cause rollovers or skidding.
• Get crash protection. Young adults ought to be cars that have the highest amount of crash-protection.
• No small vehicles. I know this seems like a paradox. What, no SUV, now no small cars? It’s true that most parents prefer to opt for more economic cars so that the gas will be more easy to handle, but it’s better to put your teen in mid-sized car, like a sedan, because these offer greater protection in case of a crash.
• Binge on something new. You might be tempted to get your kid something older so that they can afford to buy it themselves. This is good, because it teaches responsibility, but think about the fact that cars these days are a lot safer from those from five or ten years ago.

Cheers,

Fashun Guadarrama.