Teen Drivers and Insurance Dollars
Ahhhhh, freedom! Who can forget the feeling of walking out of the DMV with your first driver’s license?
Little did you know, what a road it was to get there for our parents. The training…the tests…surviving the hours at the DMV…the prayers…the sweat…the tears…the paperwork!
All that was left to do was for our parents to add us as a new driver to their auto policy.
Now, it is your turn to celebrate little Johnny’s milestone. You happily boast to your agent about Johnny passing the driving test on his first try on his 16th birthday! It is all seems very exciting. Then, your agent lets you know what the additional premium is to add little Johnny to your policy. You blink a couple times and clear out your ears to make sure you heard correctly. Yes, you have not lost your hearing – adding Johnny is going to cause your premium to double.
According to carinsurance.com, the average increase to your auto policy is 123% in North Carolina when a youthful driver is added to your auto policy. Statistically, the risk of a new driver getting into an accident is higher than any other age group. This statistic is not only scary for you as a parent, but it is the reason for the substantial increase to your auto premium.
Below are a few things to consider that can help in reducing your auto premium when adding a youthful driver, especially if they are going to be driving their own vehicle:
Slower is Better: Not only can a vehicle with lower horsepower minimize the “need for speed”, they are typically going to result in a lower premium for your youthful driver. Think minivan, not Maserati.
Safety Features: What kid does not want to pull up to school in his own Jeep Wrangler? He will love you forever and never ask for another thing in his whole life, he swears! What you’re not going to love is how much his dream vehicle is going to cost you. Vehicle types that are equipped with better safety features are going to be more cost effective from an insurance standpoint. Typically, the safety features on a vehicle will trigger discounts on your auto policy. Examples of safety features that many insurance carriers provide discounts for are:
Anti-lock brakes
Air bags
Daytime running lights
Electronic stability control
Knowledge is Power: Do your research! Grab the VIN on that Jeep he wants and then jot down the VIN off the 2000 four-door Lincoln sitting next to it. We are happy to run an estimate on how a potential vehicle is going to affect your premium.
Smart Kids: You have an honor student driving so check for “good student” credits! Some of our carriers will provide a discount to your auto policy if your youthful driver is maintaining an A or B average in school. Just be prepared to provide documentation, such as a report card.
Good Drivers are Rewarded: Some carriers will allow your agent to re-rate your auto policy mid-term when a driver has earned a year of driving experience, which can result in a sizable return premium IF the driver has maintained a clean driving record.
Driving with a Teenage Brain: Take advantage of certified driving classes beyond the required ones. Your carrier may be able to offer a discount for participating in these classes. If they don’t, it will still help minimize your child’s chances of being involved in an accident or getting a ticket. Feel free to check with us prior to signing up to see if discounts are available. If you think your premium is high for your teen driver with a clean record, you do not want to see what happens when they get a speeding ticket!
While these recommendations add yet another item to your “to do” list, we certainly hope it helps you plan and budget for the future. With the increasing cost on just about everything these days, every penny counts!
Here at Bagwell & Bagwell, your goals are our goals and at the end of the day, we are all traveling the same road with similar experiences…even navigating the roads with a teenage driver.