If you're like most parents with a teenager who is about to start driving, you're probably experiencing a combination of relief, happiness, and apprehension. You're relieved because this is the light at the end of the tunnel when it comes to being on the hook for providing your teen with transportation to activities and events and happy because it marks a milestone on your child's journey to adulthood. However, you're probably also experiencing significant apprehension for several different reasons, and one of these reasons is likely to be that you're concerned that your insurance premiums will skyrocket as the result of having a teen driver in the home.
Unfortunately, insurance companies consider teen drivers to be high-risk, and you will see a rise in the cost of your premiums. However, this does not mean that you are entirely helpless in this situation. There are strategies available to help parents in your position keep their premium payments manageable. The following are four of them.
Raise Your Deductibles
Although it's never wise to go with deductibles that are so high that out-of-pocket expenses in the event of an accident would wipe out your savings, raising them a reasonable amount will lower your premiums. For instance, if you currently carry a deductible of $500, raising it to $1000 will provide some relief as far as premium payment amounts but likely won't result in a substantial financial hardship if someone's involved in an accident.
Encourage Your Teen to Get Good Grades
Most car insurance companies provide reduced rates for teens who perform well in school, and many parents make this mandatory as a condition of having the privilege of driving. If your insurance company doesn't offer this benefit, consider switching to one that does.
Notify Your Insurance Company When Your Teen Leaves for College
Unless your teen takes a vehicle with them to campus, your premiums should drop substantially when your teen goes off to college and is only driving your car during breaks and holidays. However, you've got to let the company know; otherwise, they'll just keep charging you the same rate.
Send Your Child to Driving School
Not only does sending your child to driving school result in a break on your insurance premiums, but it also helps your child be a better driver. It's important to choose a state-certified driving school, however, and to check with your insurance company if you have questions. State regulations vary concerning driving schools, and some insurance companies offer specific recommendations.
After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.