Auto Insurance for Your Teen

Teenage Auto Insurance Guide

The time has come for Junior (or Juniorette) to get a car. You’ve hemmed and hawed put it off for months, but now your child is threatening to run off and join the Moonies if you don’t break down and help that kid get a car. And besides, aren’t you ready to stop playing chauffeur to your teen every time he/she wants to go hang at the mall or the pool or the latest gotta-be-seen-at place? Time to take the plunge, Mom and Dad, and the first thing you need to know about is that dreaded “I” word – insurance – before you even start thinking about visiting the car lots or calling ads out of the newspaper. This article should help guide you with information on how to go about getting insurance for your teenager and the best way to do it without having to get a prescription tranquilizer.

There is no getting around it: Adding a teen driver to your policy is going to mean higher premiums. But there are a few ways to soften the blow, at least for you, the parent.

But I Wanna Be Cool, Ma!

This will be difficult, but you might try explaining to your teenaged wannabe Speed Racer that with the money you save in premiums by getting an older, slower, bigger car (but not so old it doesn’t have safety features like airbags and antilock brakes), you can get him that faster-than-the-speed-of-light computer he’s been wanting since he was twelve or, if you really want to get to him, tell him it will keep you from defaulting on your house note so the whole family won’t wind up homeless, or worse – living with Uncle Elmo who still doesn’t have indoor plumbing. Because you can drop collision and comprehensive coverages, a used car with the above attributes can decrease the cost of auto insurance for your teens dramatically.

No Ogling Allowed

Even if you have to threaten taking away the beloved wheels, make sure your teen drives safely. Keeping the eyes on the road and not on the hottie crossing the street may make the difference between a crash and cash. Just one ticket or a minor fender-bender can send your teen's rates through the roof.

A No-Brainer – Not!

Good grades can equal big savings on insurance rates – up to 25% if your child can maintain a 3.0 GPA, and that ain’t chicken feed!

I Cannot Tell a Lie (Most of the Time)

There are two schools of thought on the issue of listing your teen as either a “primary” or an “occasional” driver on your policy in order to avoid higher premiums. As a so-called occasional driver, the insurer will give you a reduced rate by taking your word that your child only drives the car once in a while. If, however, you have a second or third car, the insurance company knows your teen is really a primary driver and can possibly deny collision and reduce liability payments to get back the difference that should have legitimately been paid since the teen really was a principal driver. As they say, “Honesty is the best policy,” and besides that, think about that fleet of attorneys most insurance companies maintain!

Not MY Kid

Another thing to keep in mind is your own financial security. Your teen may be a devil-may-care type who refuses to abide by the rules of the road or those of his parents, so where does that leave you? Holding the (money) bag, that’s where – unless you take steps to protect yourself from potential lawsuits that could leave you in the poorhouse. If yours is one of “those” kids, attorneys advise registering the car in your child’s name thereby distancing yourself from his or her driving record and protecting your own assets.

So Where to Buy?

A gaggle of insurance companies sell coverage for teenagers, but as always – shop around! These rates vary just as much they do for us grownups, so be sure and do your homework. Check three or four different companies at the very least, and to ease your mind further, go the extra mile by checking each company you’re seriously considering with your state’s department of insurance (http://www.naic.org/state_contacts/sid_websites.htm). Here is a link to help you get started on your quest for covering your kid:

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