5 Financial Tips Before Adding Your Teen Driver to Your Insurance Policy
The process of a teen learning how to drive can be a scary time for a lot of parents. Still, it’s something that must be done if want your child to grow into an independent adult. A Teen driver can also be very expensive as well.
This is especially the case in regards to car insurance.
Thankfully, there are strategies you can use to make sure your child is insured while not bankrupting yourself in the process.
Start Early
Don’t wait too long to begin investigating the possibility of adding your child to your auto insurance coverage.
You should start the process well before your child even gets his or her learning permit.
Start asking your insurer questions. Make sure you get a good idea of just how much extra it will cost to add your teen to your insurance.
Avoid Purchasing Separate Coverage
You may be pressured at some point in purchasing completely separate car insurance for your teen driver.
Absolutely avoid this option and shoot down the sales pitch.
Separate auto policy for a teen will certainly be far more expensive than adding your child to your existing auto coverage.
Aim for Full Coverage
Not all auto insurance coverage is equal. In general, it’s a good idea to try to obtain full coverage for your teen.
Teens are statistically more likely to be involved in an auto accident. You need to ensure that you’ll be able to pay for things like the injuries done to others.
You need liability coverage to pay for that. Collision coverage will pay for damage done to your teen’s car.
Comprehensive coverage pays for things like car theft and damage done by flooding, fire, and animals.
Check the Rules for Learning Permits
In most cases, your existing coverage should cover your teen’s driving while he or she has a learning permit.
However, make sure to call and confirm whether or not that is true with your insurer. If you’re wrong, you could run into serious problems.
List Your Teen as the Primary Driver for Your Cheapest Car
One strategy you can use to save money is to make sure your teen is driving your cheapest car.
List them as the primary driver on the cheapest vehicle you have. This will help save a good deal of money.
Never list them as the primary drive for your newest and most expensive vehicle.
Your teen learning how to drive can be a frightening time for you as a parent.
Still, you must think strategically about things like how your teen driver will be insured.
If you don’t, you could end up wasting a lot more money than you would have otherwise.
Make sure you let them know what to do in the case of a car accident.
They should know it’s better to have your trust and call the police, and yourself if they are in a crash than to leave the scene.
That can lead to legal issues. An auto accident attorney will be able to help cover the medical and car costs if involved in an accident that your insurance won’t cover.
Category: Car Insurance
