Your Teen Cost a Lot to Your Insurance

No doubt, it is a relief when your teen gets his/her driving license when he/she turns 18. You half load is taken off you. Your young driver can pick their siblings, go to school by themselves or go to a far-off market by themselves. This may seem a good idea to put your teen behind the wheels, but you do not know that how much it will cost you in terms of your insurance policy.

By the addition of a new family driver, and according to a recent study made by good to go insurance , your insurance premiums may increase by up to 79%. This is because young drivers tend to drive harshly which damages the vehicle and increases the repair costs. The premium costs for young drivers also depend upon your area of residence. For example, upon adding a family member as a new driver, if you reside in New York and Michigan, your insurance policy costs will increase by 55%, but if you live in New Hampshire and Rhode Island then there will be a 100% increase in the prices.

This may lead you into thinking again before adding your teen as a driver, but certain steps mentioned here by High point auto insurance company can be taken to reduce this boost in the premium prices significantly.

Driving Tracker:

You can get telematics installed in your vehicle to monitor your teen’s driving. With these devices, your insurance can check your driving, and if you drive sensibly and do not go crazy upon seeing an empty road, then your insurer will give you a discount on your monthly premiums.

A summary of your driving data is sent to the insurer where it is checked that how you drive your vehicle, how hard you apply brakes and many more aspects are taken into account. uses a bit similar process. They install a system like OnStar in your vehicle. It collects all of your driving data such as speed, braking, and mileage per day. In this way, you can improve your driving to get discounts from your insurer. By driving the right way, you can get discounts of up to 30%.

Additional discounts:

There are a variety of other discounts offered by the insurance companies including Good to go insurance company. These include.

  1. Discounts on good student package.
  2. Being married discount.
  3. Low annual mileage discount.
  4. Discount on just personal use.
  5. Discount if you have any other policy with the same insuring company.
  6. Discounts on higher deductibles.
  7. Discounts for taking online driver test specifically designed to test your driving skills.

Distant driver discounts:

If your teen goes to college in his/her car, then it will be a good choice to inform your insurer about when does your teen goes for the semester. You will get the “Distant Driver Discount” if your teen goes 100 miles away from home for his/her studies.

Get your teen a used car:

It is more likely that your teen will crash your car somewhere even if they drive carefully. So, buy your teen a cheap used car. If your teen somewhere wrecks your car somewhere, a used car will not be a big loss. Also, the used cars are cheap to be insured. If you have an old car, give it to your child, instead of buying him a new one.

Liability Insurance:

It is the riskiest time in your life when your teen starts driving. The car is yours; the insurance is in your name. So, all of your property is at risk, if your child does a big damage with his/her car. A go to go insurance expert says, “You should be able to buy $1 million of liability coverage that sits on the top of the liability coverage provided by your auto policy for $250 to $300. If you want a second million, it will cost you even less.

The average insurance costs per year are $1200 per year. This amount is $1,900 for under 25 drivers. Below given are a few tips that will cut at least $100 from your annual insurance payments.

Third party is not always the cheapest:

There are typically three types of car insurances.

  1. Third part only.
  2. Third party fire and theft.
  3. Fully comprehensive coverage.

You save a total of $2,200 if you choose the comprehensive coverage rather than a third-party policy.

A second driver:

In an experiment, the company added a 40-year old driver to a main 18-year old driver. Interestingly, the premium costs were cut down by $600.

Car insurance is all about risk:

If you are a driver who does extreme driving, then you should consider adding a second driver who has lower risk, the one who does safe driving. In this way, the average risk will drop down, and you will get a lower priced premium package.

Not just for young drivers:

This is the best for the young drivers as they have a high risk-rate. But this isn’t just for them. You can also get it to cut your premium costs.

Driving records:

A better driving history will also get you discounts on your premium policy. Driving history makes a huge difference so that you can get help from a person with low driving-risk records.

This is about doing trials:

No one knows which family member will decrease your premium costs. So, keep experimenting to get the best policy costs and discounts on them.

Add a second driver with low risk:

If you add a second driver with higher risk-rate, it will do more harm than good. To add someone with a low-risk rate as the second driver.

Don’t add someone as the main driver, if they are not:

If you add someone as a main driver, but they are not the main driver, it is considered as fraud. Moreover, your insurance will become invalid if you get caught doing it.

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