Insuring your newly licensed teen or a driver with less than 6 years driving history is an eye (and wallet) opening experience. The facts are simple- insurance premiums are calculated based many variables including risk and claims statistics. Simply put, less experienced drivers are at a much greater risk to have an at fault accident than drivers with a few years behind their seat belt. In fact, 42% of newly licensed drivers have an accident within 12 months of licensing.
The good news is there are ways to minimize the cost by taking advantage of driver discounts available for less experienced drivers.
Let's start with good grades. If your child earns 3.0 or honor roll status then he or she may be eligible for a discount. Why? Insurers review claims and find higher achieving students have fewer accidents so they factor this into the pricing.
Does your child attend school more than 100 miles from your home? Do they leave all cars at home? If so, your student may be eligible for a discount because he or she will not have regular access to a vehicle. The beauty of this discount is that your child may drive when they return home on breaks or vacation.
Has your child taken an advanced driver training course such as InControl driver training? This certificate can also earn a discount with many insurance carriers.
Consider raising your collision deductible to $1000. This minimizes premium particularly when younger drivers are insured on the policy. A word to the wise- you may want to add to your household emergency fund in the event there is a claim.
If you insure an older model vehicle for your child, you may want to drop collision coverage. Since you receive actual cash value for total losses, typically, the premium outlay with a teen driver does not justify continuing the collision coverage on an older vehicle.
If you are looking at reducing coverage, steer clear of minimizing part 5- optional bodily injury liability coverage. This is the coverage that protects you and your child if you are sued due to an at fault accident. Even if your child has no appreciable assets now, future wages can be garnished in a successful lawsuit.
Other ways to save premium on your policies with or without teen drivers include:
Packaging your policies with the same independent insurance agent, including www.agordon.com
Insuring home and auto with the same company
AAA or roadside assistance membership discounts
Low mileage- this can vary by company so be sure to tell your agent your average miles per year
Vehicle recovery systems
Payment plan discounts- some companies offer discounts if you pay in full.
E-Documents- if you elect to receive your policy billing and policy by email- there are discounts offered.
Keep us posted if you have a freshly issued MA operator's license in your household. Our agency, www.agordon.com can offer solutions to keep the premiums low with comprehensive coverages.