Milestones of Life
Driving is one of the highly anticipated milestones in a young person’s life. They can’t wait to get behind the wheel of the car and feel independent and free. Parents, on the other hand, often dread the day. They know that their young driver is going to need insurance in order to drive legally and they also know that driving insurance for young drivers is typically higher than that of older, more mature drivers. There are some tips that can help find the best prices and relieve some of the stress involved in getting the new driver ready for the road.
Academics and Driving Insurance
Many automobile insurance companies have discounts for young drivers that have a high GPA (grade point average). This is a win-win situation for parents. The discount on the insurance is the first win and the added incentive for the student to maintain higher grades in school is the second win. This is one of the benefits worth asking about when shopping for car insurance for young drivers.
Drivers Ed or Training
Many states require young people to attend a drivers education course; however, if not, it is worth considering since most insurance companies offer discounts for people who have taken a driver’s education class or have attended driving instruction school. Many people know that this discount is available but didn’t realize that it also applies to young drivers. Many schools offer the class as part of the high school curriculum. If it is not offered, the cost of the school is usually not very high and is made up by the discounts that are offered on the car insurance.
Car Selection
It’s natural for young people to want impressive sport’s cars. They want to stand out and look cool; however, the type of car a young driver has will play a large role in the cost of the insurance. Sports cars are very expensive, particularly what are considered “muscle cars”, those with big engines that are meant for speed. Convertibles are also increase insurance premiums. Young drivers needs cars with safety features that are not considered sports cars, like small coupes. If they want a sporty car, they should wait until they are older and the premiums are less.
Family Policies
Another consideration that must be factored in is the family’s insurance. In some states, the young driver who still lives at home with their parents will automatically go on the parents insurance when they obtain their driving license. This means that the family insurance will increase which in turn means that the family insurance should be well researched and price shopped with this in mind.
This is especially true if the family has a sports car or other vehicle that would be a high premium for a young driver. The insurance may not be high until the young driver obtains a license to drive and then suddenly the policy skyrockets. Families should check their state insurance laws and their policy terms and conditions so that they are not caught unaware with a huge price increase.
Don’t Skimp
It is important not to skimp on coverage for young drivers. It might seem tempting to keep the cost of the policy down to simply insure them for the required amount; however, statistics show that new, young drivers are at a higher risk for accidents than most other drivers. If they are involved in an accident it is important that they have enough insurance to keep from being sued in court. If the young driver still lives at home, it is possible that a court suit could affect the family finances. In many states the law allows lawsuits to extend to parent if the person at fault is a minor living at home.
Young drivers need to have full coverage in order to be able to make repairs to the vehicle if they are in a fender bender. However, the key is to make sure the liability coverage is fairly high and that the medical coverage is high as well. These two areas will help protect family finances if an accident does occur.
Future Insurance
One of the best pieces of advice any new driver should heed is to keep their driving record clean. A clean driving record will help them keep their insurance costs down in the future as they move into adulthood. Speeding and reckless driving are the two most common incidents found on young driver’s records; DUIs are the next most common as they approach adulthood and are out with friends. These things can be detrimental to future insurance costs and should be avoided.
Using tips for purchasing driving insurance for young drivers will help find the best insurance at the best prices and allow them to spend time on more important things like learning the open road.
