Reader question:
What’s some advice for us people who have to deal with adding teenagers to our car insurance company in the next couple of years? Can it be done cheaply?
Laurie
Maybe not cheaply, but reasonably.
First of all, know that you’re going to be paying higher premiums and come to terms with it. Teenagers are widely known as irresponsible drivers, and car insurance companies are more aware of this than anybody else, so anytime you had somebody within that age group onto your policy you’re going to see your rates go up as defensive reflex by the insurance company. However, there are things you can do to keep those rates from getting out of hand. Taking advantage of discounts, having your child drive an older car, and paying close attention to safety can all lend a hand. Also remember that the gender of your child has an effect. Your son might triple your rates, whereas your daughter will only double them.
It can save a lot of money to assign the teenager to an older vehicle, but this should be done with some consideration. First of all, older model cars might not have the same safety features that come standard with more recently released vehicles. Because of this, you might want to err on the side of caution. Also, if your student is learning to drive in your newer car, and then switches to an older car of their own, they may have to learn new driving techniques to drive safely with the older technology.
Find out when your teen needs insurance. This is important, because it isn’t the same in every state. Call up your insurer and ask. It may be that your teenager needs to be insured as soon as he gets his permit, or you may be able to wait until he has his full license.
Take advantage of discounts. Make it a condition for your teenager that if they want to drive, they have to pull decent grades in school, and then you can get a good student discount. Put your teen through a defensive driving course. Call your insurer and find out what are all of the options that are open to you.
Cheers,
Fashun Guadarrama.