Everyone worries about having enough money for their child’s education but they tend to forget about another huge expense, young drivers’ car insurance. If you have a baby girl, you can wait a little to start your fund, but if your baby’s a boy, start saving money for that first policy the minute you get home from the hospital.
Of course, that’s a little bit of an exaggeration on the cost of young drivers’ insurance, but if you’re a parent with a new teen driver, you probably may think it’s pretty accurate.
Young drivers simply pay more for their insurance.
There’s a reason they pay more. They have less experience on the road, statistic show they have more accidents and they have limited histories driving so insurance companies are looking at an unknown risk factor also.
If you’ve ridden with your child at the wheel, you may decide that no matter what the insurance company charges, it’s a bargain price. That’s where you might be wrong. You can get cheap young drivers’ car insurance if you shop online for quotes at several different sites.
Since your young driver is on the family policy, you’ll have to secure quotes for your family car insurance. If you carve out the high priced child and insure them through another company, your company will still charge you because they still see him as a driver in the household.
Most sites offer multiple quotes and you might find that in addition to saving money on the insurance for your young driver, you dramatically reduce the cost of insuring your other vehicles.
See if you can find discounts for your new driver. Often companies offer discounts for good students, additional savings if your child took a driver’s education course and multiple car discounts. You may also have a discount if you carry other types of insurance with the company, such as life or health insurance.
Just because it’s expensive, you might be tempted to reduce the amount of coverage. If your child’s car has a loan, you must carry full coverage. Don’t even consider selecting the state’s minimum liability for coverage. Most state’s minimums barely cover a visit to an emergency room, let alone the cost of a hospital stay.
The best way to keep your insurance rates lower when you have a young driver, besides comparing rates is to put specific rules in place for your child’s protection. For their first year of driving, don’t allow your child to become the crowd’s Taxi Cab. A vehicle filled with talking, rambunctious teenagers detracts from the driver’s focus on the road. Minimize the potential danger by limiting the taxi service they perform. Get your son or daughter a hand’s free headset for their cell phone. Set curfews for your child, when they drive. Late night drives mean sleepy drivers and an accident waiting to occur.
You’ll save your family budget from certain death when you start shopping for comparison rates. You’ll be happy you shopped.