Obtaining Affordable Car Insurance for Your Teenager
Your children experience significant milestones growing up. And one of the most exciting and nerve-wracking ones is when they start driving for the first time. It’s crucial that you help your children learn how to drive safely. Obtaining car insurance in Harvey, IL is one way you can ensure their protection behind the wheel. With an insurance policy, you can get sufficient coverage for vehicle damage or injuries to other drivers, passengers, or pedestrians.
The catch: Car insurance is one of the most expensive components of car ownership. If you add a teen driver to your policy, your insurance premiums can quickly rise to as much as 80 percent. So how do you keep insurance costs low while making sure that your child drives safely?
Opt out of including your kids on your insurance policy
Insurance companies and agents often encourage parents to list their children in their car insurance policy. But this comes with the price of paying an additional premium.
But in most states, insurance follows the car. This means that anyone driving the vehicle with your permission is covered—including teen drivers. It helps to think of your insurance policy as lending a car to a friend. If they borrow a car and have an accident, your plan will cover the damage and injuries. For good measure, it pays to talk to an attorney familiar with the insurance laws in your state.
There are only two exceptions when you should include your kid in your insurance policy:
- If your teen has their own car – If you buy a car for your kid and their name is on the title of the vehicle, then you need to include them on your insurance policy.
- If you have a standard insurance policy - If your current insurance policy excludes anyone explicitly from coverage except the driver, then it’s a good idea to include list your child on your auto insurance instead.
Take advantage of student discounts
If you’re sending your kid off to college without a car, mention this to your insurance agent. Some companies offer provisions for teens attending college far from their homes and don’t have a car on campus. Other insurance providers offer discounts to students with impressive grades, and the price reduction can fall anywhere between 10 to 20 percent.
For instance, an insured student must have a grade point average of 3.0 or higher to qualify for the insurance. If their grades fall below the threshold, the student may lose their discount. As a parent, encourage your kids to get their grades up before getting their license. Or if they have a job, you can make them shoulder the extra premium that result from their bad grades.
And when they finally get their grades high enough to qualify for the student discount, make sure they aren’t driving a car that’s too expensive to insure. Used but safe cars are a wise choice if you want to keep your insurance costs down. So ensure that your child is the primary driver of an affordable vehicle.
Obtaining a driver’s license is a rite of passage for most teens, and getting behind the wheel is one of the ways your child can enjoy their newfound freedom. Keep them safe and happy on the road by shopping for an affordable vehicle and encouraging them to get high grades.