A parent can assign a specific car to their teen
Certain cars are more expensive to insure than others, which makes sense considering that newer luxury vehicles and/or imports are often more expensive to repair or replace than older cars.
If you have a 2018 BMW, a 2013 Honda Civic, and a 2005 Chrysler Sebring in your home, you don’t want your insurance provider to believe that the teenager is driving the BMW or your premiums might be exorbitant. Talk to our agents at Malhotra & Assoc. Insurance to learn more about assigning the appropriate vehicle to your teen.
Good grades can mean cheaper insurance
You are one smart cookie for exploring your teen’s insurance options, but did you know your teen’s grades can result in cheaper insurance? There are many reasons to study and maintain good grades. One of the factors is that it will be able to assist you in obtaining lower auto insurance rates. Good grades often result in a ‘Good Student Discount’. Car insurance discounts (especially for teenagers) can be beneficial as you plan for the future. Bear in mind that you’ll most likely need to provide evidence of your teen’s good grades, such as a report card, and satisfy the policy requirements. However, in the event that your teen doesn’t have great grades, don’t be worry about it. Ask us to find a discount that fits your situation.
Will driver’s education lower my insurance?
One way to reduce the expense of insuring a teen is to enroll them in a driver’s education course / defensive driving course. A driver’s education course is a great way to maximize your savings and teach your child excellent driving skills. Many carriers offer up to a 10% discount after proof of training, so capitalize on this option if you can.
Add your teen driver to your existing policy
Adding a teenager to their parents’ insurance is normally less expensive than insuring them separately. Most insurance providers will not charge an extra fee until the teen has obtained his or her driver’s license. Parents must notify their insurance provider or insurer that their teen will be added to their policy. Coverage can be harmed if you purposely disguise your teen’s driving habits.
There are several exceptions to adding your teen to your policy, but if you have an economical policy, adding your teen to your policy is usually less costly than having them buy their own insurance. If you’re trying to instill responsibility in your child by asking them to pay for their insurance, there are options that we can discuss.
If your teen gets into an accident that raises your premiums, you can remove them from your policy and require them to purchase their own coverage. However, you should double-check the rules and regulations—some states have laws that require you to cosign for insurance coverage, even if your teen has their own policy.
In the unfortunate event that your dependent gets into a fender bender that raises your premiums, you can remove them from your policy and purchase a new policy for them. In any case, you should check the principles and guidelines— your states’ laws might require you to cosign for insurance coverage.
Drive a safe and affordable car
Insurance premiums are even higher for cars that are a favorite target for criminals, are costly to fix, or are deemed ‘high value’. Before you purchase a car, get a quote from your insurer to see how much it would cost to insure it.
Obviously, you don’t want to have your teen driving an old car with no safety features. So, get it thoroughly inspected by a mechanic before you buy it.
Furthermore, compared to a vehicle that is flashier and faster, driving a car with good safety ratings reduces the cost of auto insurance. Airbags, anti-theft measures, and anti-lock braking systems are some of the newer safety features that can help lower premiums.
Our blog articles are intended for general informational purposes. Please contact one of our Licensed Insurance Agents if you have specific questions about your coverage.
*Our blog articles are intended for general informational purposes. Please contact one of our Licensed Insurance Agents if you have specific questions about your coverage.
About the Author: Alekha is an expert in the insurance space and has been with the Malhotra & Assoc. Insurance team since its inception. Alekha works to provide expertly written and researched content for the Maholtra & Assoc. Insurance agency.