teen driver insurance

School is back in session and so is teenage driving. Whether they drive to high school or college, adding them to your auto insurance policy is required by law. If the child holds a driving permit, you need to let your insurance company know. They will not be listed or your policy charged. Many parents are concerned whether the addition of a teenager to their policy will affect the rates. Let’s look at how you can make sure your rates see the least possible increase.

In our dreams we’d all wish we could drive a Ferrari to school to show off to our friends. Let’s just say our parents would not be so happy in those dreams. It is better for your child to drive a standard vehicle than a sports car. According to Russ Rader, spokesperson for the Insurance Institute for Highway Safety (IIHS), “Putting your teen in a big, boring vehicle is going to be a lot easier on the wallet than giving them the zippy small car they may want.” Insurance companies look at make and model and the likelihood of an accident in that vehicle to determine a rate. Giving your child a sports car will cost more than gifting them a Camry. Furthermore, it is more economically convenient for you if your child drives an older model. The reason behind that is because older models are cheaper to repair after an accident in comparison to a newer and faster car. So, keep that in mind. It is also important to always look for discount opportunities.

In a study done for Nationwide in 2010 found that auto insurance costs increased on an average of $800 a year for adding a teenager to a policy. But, discount options exist. For example, some companies offer discounts for students who maintain a B average or higher. Some offer discounts for teens who have completed a driver’s course. And, most importantly, as with adults, a clean record helps keep your rates small. So, don’t forget to impose your parental influence by reminding your children to be super safe on the road (no use of cellphones by hand, drunk driving, etc.)

Do you need coverage for your teen driver? Palm Desert can find you the best insurance package. Visit our website at http://palmdesertinsurance.net/ and you can learn all about our auto insurance coverage. You can also call (888) 880-8872 to speak to a representative who can get you more information and a free quote!