Car Insurance For Young Drivers

2007-03-08 10:33:40

( Automobiles )



If your teenage son or daughter is just starting to drive, you are probably ready to shop for car insurance for the newest driver in your family.

As you know, auto insurance for teens can be quite expensive – and with good reason. According to statistics, drivers aged sixteen to twenty-four have the highest accident rates. Consequently, most insurance companies view young drivers as ‘high risks’ and thus charge higher premiums.

What you probably don’t know is that there are ways to reduce the cost of car insurance for young drivers.

To start with, you need to consider whether you should buy your child his own auto insurance or add him to your existing policy.

If your child is just learning to drive, it may be a smart idea to just add him to your policy. In fact, most insurance providers would actually require that you add your child to your coverage as soon as he gets his learning permit.

Since learners are always accompanied by licensed adults, they are not considered a significant risk. Therefore, you only need to pay a minimal amount to incorporate your teen into your policy.

There are times, however, when adding your child to your policy is not the most practical option.

For instance, if you are planning to get only basic car insurance for your child, a separate policy may be cheaper.

Additionally, if your teenage child is driving a second hand car with an insignificant market value, it would be more practical to buy him his own coverage. If you add him to your policy, the premiums would ultimately cost more than the money needed to repair a second hand vehicle.

On the other hand, there are some insurance companies that offer discounts for incorporating your child into your existing policy. If the discounted premiums cost less than a separate policy, then adding him to your coverage may be your best choice.

Before you pay for additional coverage, however, talk to your agent first. Your agent can help you compare the costs versus the benefits, and even tailor a policy that fits your child's needs. In getting car insurance for your young driver, it's imperative that you get the best value for your dollars.


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