by Treva Cassidy, CISR on Feb 27, 2013
So, your teen has gotten his license. Are you ready for the cost of insuring him? According to the Insurance Institute for Highway Safety, teens are 3 times more likely to get into an accident then drivers over the age of 20. Sadly, automobile accidents are the number one cause of accidental deaths for teens according to the CDC.
Here are a few tips to keep your costs down and more importantly, keep your kids safe:
- Enroll your kids in Driver Training – it may be a little pricey but the lessons learned by a certified driving school are invaluable. You will pay lower insurance rates if they take standard state approved Driver’s Education.
- Enroll your kids in Advanced Driver Training programs – many insurance companies in offer additional discounts and even reduced rates on the programs themselves. Take a look at Stevens’ Skid School and In Control Advanced Driver Training.
- Have a contract with your teen regarding use of the car - the CDC Parent-Teen Driving Agreement is a great example that puts the expectations you have for your new driver in writing.
- If your child is a good student, many companies offer up to 10% off the rate if your child has a B average of a 3.0 GPA.
- If you decide to buy a vehicle for your child, look at purchasing a safe but older vehicle and consider not carrying Collision coverage on the car. Collision coverage for a newer driver can be very expensive.
- Look at the cost of your child on his own policy with his own car versus putting a car on your policy for him to drive. Since you have been insured for a long time and may have credits for which he’s not yet eligible, it may be more cost effective to put a car on your policy for him to drive.
- Increase your liability limits to at least $100,000/300,000 – nothing is more expensive then paying out of pocket for an accident that your child was in.
As always, we are here to help you and your family make the best insurance decisions to fit your needs. Call us at 978-352-8000 or email info [at] georgetowninsurance [dot] com anytime for our professional advice.