Choosing Better Insurance Coverage

Few things are more important than having the right insurance coverage. About ten years ago, I was involved in a near-fatal crash where I experienced traumatic physical and emotional injuries. It was really challenging for me to endure the hospital stay and subsequent physical rehabilitation, but with the help of my medical team and my insurance company, I was able to overcome the challenge and completely recover. This blog is all about the importance of choosing the right insurance plan so that you can get on with your life and enjoy those precious years with your family and your friends.

Tips For Offsetting The Cost Of Adding Your Teenager To Your Auto Insurance Policy

Insurance Blog

On average, a married couple's auto insurance policy increases by 79 percent when a teenage driver is added. It can be aggravating to see your insurance policy increase a little bit, but for many people such as staggering increase isn't feasible. The good news is, there are a few things that you can do to offset the additional cost associated with adding your teen driver to your car insurance policy.

Purchase a Car That's Cheaper to Insure

While it might sound odd, it may offset the additional premium cost if you purchase a car for your teen. To make it work, you'll need to purchase a car that's considered cheaper to insure, such as a four-door sedan or a minivan, that you don't need to fully insure. When you add the vehicle to your policy, you'll make your teen the primary driver of the vehicle. This means that your teen will be driving the vehicle the majority of the time, which in turn, lowers the risk of loss on the the vehicles on your car insurance policy. Because you won't be able to tell exactly how adding an additional vehicle to your policy will affect the rates until it's added, it's a good idea to call your insurance company before you purchase a specific vehicle to get a quote.

Ask About Discounts

Many insurance companies offer numerous discounts that could help offset your premium increase. So, when you add your child to your auto insurance policy, ask if your policy qualifies for discounts, such as the following:

  • Good student discount. Some insurance companies offer a discount to students who maintain good grades throughout the school year.
  • Defensive driver discount. Many insurance companies offer a discount for anyone who voluntarily completes an approved defensive driver course. While you can have your teen take this course, it might be a good idea if all of the drivers on your insurance policy take it so that you can maximize the amount of your discount.
  • Safe driver discount. If your insurance company offers a discount to drivers who maintain a clean driving record for a specific amount of time, your teen will qualify for the discount too — as long as he or she doesn't get any traffic tickets or auto accidents within the time frame specified by your insurance company.

Monitoring Devices

Ask your insurance agent if your company offers a discount if you install a monitoring device on your car. The device monitors the driver of the car, looking for good driving habits, such as stopping slowly, not accelerating too fast, and wearing a seat belt. While this can help lower your insurance rates if you drive safely, it won't help you if you don't already have good driving habits. However, if you install a device on your teen's car, it will make you aware of any bad driving habits your teen develops so that you can encourage him or her to change bad habits into good ones.

Unfortunately, newly licensed drivers are considered high risk, so adding your teen to your auto insurance policy will most likely increase the cost of your premium. Offset the additional costs by taking advantage of any discounts that are available, purchasing a car for your teen that is cheaper to insure, and encouraging good driving habits.

For more information, contact a company like LA Insurance.


6 July 2016