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A mixed blessing: your teen got a driver’s license!

 

It’s an exciting time when your teenager gets their license. The big question on every parent’s mind, though, is: what does this do to my auto insurance premium?

Statistics show that young operators are at much higher risk to get into fender benders than experienced operators. This results in the cost of your collision coverage going up.

So, what do you do? Since the biggest statistical risk in the eyes of insurance companies is the collision coverage, the best thing you can do is increase your deductible. If you currently carry a $500 collision deductible, we suggest going up to $1,000. We think it’s worth it, due to the significant savings associated with the higher deductible. It’s also important to note that a lot of insurance companies waive the deductible in a not at fault accident. This means that if it’s determined the accident was not your fault, your deductible stays in your pocket.

If you’re weighing the cost of driver’s education, pull the trigger and do it. Insurance carriers offer up to a 25% discount for completion of the course, meaning that driver’s education essentially pays for itself in the first couple years of the policy.

If your child is away at college more than a hundred miles away, or is currently serving in the military, and does not have a car, be sure tell us and take advantage of a pretty significant discount. Grades are also important to carriers; if your teen currently earns a B average or better, please consult us on a possible good student discount.

Children are a blessing, but they can be a curse on your insurance bill if you’re not taking advantage of all your options. Contact us today and we’ll walk you through them.