One of the scariest things for a parent is letting their child drive off in a car alone for the first time. All the training and coaching that has to lead up to this point will now prove itself worthy. Cheap Insurance recommends that you start preparing for this endeavor well in advance. Not only will you have to prepare yourself to have your child driving without you and hope that they are following your advice but, you will have to prepare for the cost of insurance. Drivers between the age of 16 and 24 are statistically a higher risk and therefore will cost more to insure.
It is your job, as the parent, to give your child the tools to be a successful driver. It is our job, as licensed insurance agents, to give you the tools to make the right insurance purchase.
Before you toss them the keys, you’ll need to make sure they are now a rated driver on your auto insurance policy. You may want to be sitting down when you make this call to your agent because your premium will increase, many policies will double or more.
There are several ways to save on insurance and get the best rate possible.
Good Student Discounts. This discount can be as big as 20% for those students who qualify. Driving is a privilege, you can always encourage your child have maintained good grades in order to get this privilege and keep it.
Buy an older car and carry just liability insurance for that car. The largest part of the premium when rating a newly licensed driver on a car is the property damage of the car itself (collision and comprehensive deductibles). You will save money on insurance if you can go without those coverages.
Low mileage discounts. Statistically, US drivers drive 13,000 annual miles or more. If you can prove* that your student drives less than this amount, you could be eligible for a reduced premium. See your agent for acceptable proof
Occasional driver. If your child will be sharing a vehicle with you and only driving it occasionally, you could qualify to receive this credit and not pay as high of a premium.
SHOP around. Each insurance carrier will be filed differently based on their rating factors. Adding a newly licensed driver to your policy significantly changes your risk, the policy that covered you before may not be the best, most affordable option for you now. Companies like Cheap insurance are brokerages that offer access to multiple insurance companies and are happily willing to compare rates for you.
Multi-policy discounts. Many companies offer home and renters insurance and will offer up to a 15% savings on the car insurance policy when you package it with another policy with the same company. Ask for this to be compared by your agent.
Cheap Insurance is here to assist in answering all of your young driver questions and we will make your experience of adding a newly licensed driver as painless as possible. Reach us online or by calling (800) 486-1866
Read our article: What happens if a driver is caught without a Drivers License?