New Driver in the House? - What Every Parent or New Teen Driver Should Know
A teenager getting their drivers license is both an exciting and stressful time for both the parent(s) and new driver. While a license gives you freedom to explore the open road, it also brings on new worries and financial obligations.
Why Are Insurance Rates Higher For Teenagers
One of the main reasons why insurance rates are higher for teenagers is because they lack driving experience. With a lack of driving experience comes the unfortunate probability that they will be involved in an automobile accident. The likelihood of an accident and the cost of the accident, results in higher insurance rates for new, inexperienced drivers.
The good news is that the longer a new driver is continuously insured and maintains a good driving record, you should start seeing a decrease in the auto insurance premium in about 3 years.
How To Keep Insurance Cost Down For New Drivers
Telematics Devices - Carriers are now offering smartapp telematics that give a 5%-10% discounts. You can either install the device in your car or download the app on your smartphone. Usually for 90 days, these devices monitor your driving habits by tracking your mileage, speed and breaking. The silver lining is that this device will make your new driver more aware of their driving behavior as the parent(s) is able to monitor it.
Shop Insurance with an Independent Agent - Use an independent agent, like Bergen Insurance Insurance Group, to shop insurance rates for you. Premium vary from carrier to carrier. Make sure you are getting the most competitive rate at the time.
Use Good Student Discount - Many carriers have a "Good Student" discount for high school and college students who maintain a B average or higher. Provide your agent with a transcript as proof of good grades.
Driving Training - If your new driver went to a driving school and completed behind the wheel training, they may be eligible for a driver training discount.
Defensive Driving Course - Many carriers offer a discount if you take a 6 hour online defensive driving course. There are courses like Safe2Drive. Enter code "Bergen" and get 20% off the course. *Bergen Insurance Group gets no compensation for sending customers to this course. Instead of receiving compensation, we asked they give our customers a discount instead. We put our customers first.
The Car - The make and model can have an affect on your premium. Normally, cars with more expensive parts to repair can cause higher premiums. Consider getting an older vehicle with good safety features.
When Should a Parent(s) Add a New Driver to Their Auto Insurance Policy
Generally, every household member that is licensed needs to be on an insurance policy, whether it is their own or their parent(s) or relative. Failure to disclose a newly license driver in the household could lead to harsh repercussions from the insurance company.
It is unfortunate, but you should expect to see a substantial increase when you add a newly licensed driver to your policy. It will most likely be cheaper if you add the new driver to your policy as opposed to them getting their own policy.
However, if they also get a new car, and the car is registered in the new driver's name, most carriers require the vehicle registrant to have their own insurance in their individual name.
Student Away At College
But my child is away at school and doesn't drive? Yes, but technically they are still considered members of your household and they must be added to your insurance policy.
The good news! If they are away at school with no vehicle and the school is located over 100 miles away, there is a rating discount. A guess that is one good reason to let your little one go to school on the opposite side of the country.
Hope this helps.
*The content contained in this blog is for informational purposes only. It should not be considered insurance advice since every client's needs and circumstances are different. Bergen Insurance Group, LLC makes no representation as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All statements represent the sole opinion of the author and is provided on an as-is basis. For an actual description of all coverages, terms and conditions, refer to your insurance policy.