Are your teens nagging you about adding them to your auto insurance? Here are a few things to consider so that you make the best choice for you and your driving teens.
Auto Insurance 101
In most cases adding your teenager to your auto insurance may be cheaper for you and them. Teens and young singles can often be charged higher insurance premiums because insurance companies deem them to be higher risks than older adults. If your teens are currently living at home, even if they’re college age, they’re eligible to remain on a parent’s car insurance providing they don’t have their own vehicle. If your family has more than one car it’s best to do your research and calculate insurance premiums. The cost of auto insurance varies depending on the make and model of a vehicle as well as the year.
Adding your teen to an expensive car can increase your costs. It’s a good thing to check with your insurance company to see if they provide cheaper rates for an older vehicle. Inquire through your insurance company about how much coverage is enough for your teens. Young drivers tend to have a low net worth with auto insurance companies, so it may not be necessary to go overboard in the amount of liability coverage you get for your teen.
Cutting the Costs
If you insure you teen with an older car or choose to purchase an older car for them, you may consider cutting out collision insurance in order to lower expenses. With older cars the cost of collision can exceed the total value of the vehicle. Also, encourage your teens or college students to keep their grades up. Many insurance companies provide continued discounts for a student’s good grades – and consider raising your deductible. A higher deductible can lower your premium cost.
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