We have all been there before or are fast approaching the dreaded budget-busting day when we must add our children to our auto policies. Undoubtedly one of the more expensive, price-driving events for an auto insurance policy, many parents may find themselves struggling with the cost of adding a young driver. However, there are a few things you can do when working with your experienced insurance professional that can help soften the impact and save you some serious money when going down this path. When you’re ready to add that young driver to your insurance, the following article will prove extremely helpful in breaking down 4 cost-saving strategies.
Why are Young Drivers so Expensive to Insure?
Today’s information age makes it easy to find a wealth of facts about teenage drivers and their propensity to be involved in auto accidents. As a result of several organizations keeping track of every statistic related to motor accidents, parents may feel unnecessary fear when handing their kids the keys to the car. However, with the right training and guidance, that shouldn’t be the case with your young driver, and you can drastically lower the likelihood that your child may be involved in an accident. In the most basic of views, young drivers are most at risk and expensive to insure because they lack experience, and the only way to counter that is to give them that experience so they can improve as motorists.
What can we do to keep our costs down when adding a young driver?
1. Good Student Discounts
A majority of carriers offer generous discounts for students that possess a 3.0 or higher GPA. These discounts can range anywhere from 8-15% depending on the insurer which can make a huge difference in your annual rate. Hit the books and save!
2. Telematics Programs with the Carrier
With telematics programs, your insurance company can monitor your driving habits by plugging a device into your car or downloading an app to your smartphone. Examples of these patterns include mileage driven, the time of day you are driving, and rapid braking and acceleration. To accurately learn about your driving habits, each carrier will want to run these analytics for a certain period of time. However, after that period has gone, they will proceed to reward safe driving with savings. These discounts, which, depending on the carrier, may exceed 30%, will surely aid in reducing the cost of adding a young driver.
This is actually one of my favorites for new drivers and the parents of new drivers. It is really a win-win. Think about it, if the young driver knows that their actions are being monitored, the less likely they are to drive erratically thus greatly reducing the risk of an accident. As the parent, you have access to the monitoring online and you can advise as needed based on the information you receive. Match that with an added discount and it is a great recipe for success.
3. Make a Smart “First-Car” Decision
Although it is crucial to make sure your child is in a safe car. If you don’t want to pay a fortune for insurance, you also don’t want them driving a brand-new vehicle. You can choose liability-only or comprehensive-only style coverages to assist in keeping your rates lower if you can find a vehicle for them that you don’t have to finance. Finding the ideal balance between these two elements would be quite beneficial because, on the other hand, insurance does offer discounts for safety features like airbags, anti-lock brakes, and many others for good reason (they significantly reduce the chance of accidents).
4. Work With an Independent Insurance Agency
All carriers have different appetites and price structures for young drivers. An independent agent will have their finger on the pulse of who tends to be a little more lenient with adding young drivers and have access to those specific markets. On top of that, as your youthful driver gains more experience they will be able to ensure your policy is in the most optimal spot for years to come.
Since an independent agent has a wide range of carriers at their discretion, the mindset tends to lean more toward serving you, the customer, and your interests rather than a particular carrier. Adding a young driver to your policy doesn’t have to be a challenging feat when you have a good agency on your side. Contact the Staples Agency and one of our personal lines specialists will be pleased to help if you’d like more details or to have a more in-depth discussion.