What fond memories we have of turning 16… Taking our drivers test, buying a car, driving to school for the first time, or picking up your friends for the first time, many exciting things happen around that age(or at least from the child’s perspective!). \u00a0For parents it opens the door for many new worries and\u00a0anxieties, including “how much is this going to cost me?” \u00a0Adding a teenage driver to your insurance policy is very expensive, I will try to help you understand why, as well as give you some pointers to help lessen that, and explain the importance of having them on your policy instead of on their own.<\/p>\n
Teenagers are risky, we all know it. \u00a0At 16 years old the human brain is not finished developing nor is it common that a 16 year old brain has reached its full capacity for decision making. \u00a0The biggest issue insurance companies have with teenage drivers is simply lack of experience. \u00a0It is very common that an accident that you or I would easily avoid safely, can cause an\u00a0inexperienced\u00a0driver to panic and overreact. \u00a0Add on top of that the numerous distractions they have from stereos and smart phones to friends in the car with them. \u00a0Aside from smart phones there are other risks associated with younger drivers that may not have been an issue in years past such as the time constraints placed on teenagers these days. \u00a0Teenagers today are under more pressure than ever to play sports and practice, study for SATs, figure out where to go to college, all on top of much harder\u00a0curriculum which requires much more time studying at home. \u00a0These factors all lead to the second biggest risk which is speed.<\/p>\n
Now, if you are looking to save as much money as possibly when you add your child there are several things that will help significantly! \u00a0#1 Be a Good Student, most insurance companies offer\u00a0sizeable\u00a0discounts to those underage drivers who can maintain a 80 or above average, some as much as 15%. \u00a0#2 Driver Training! \u00a0In the state of Georgia you are now required to take a drivers training course to get your license, and some insurance companies still offer a discount for it. \u00a0However, there are other programs including an offensive drivers course that can help get some additional discounts. \u00a0#3 Choose the right car! If you put your child in a new high performance sports car, you will pay heavily for it. \u00a0The best option for saving money is to buy a cheaper car that you do not need comprehensive and collision coverage on, these two coverage is where the bulk of the premium will go. \u00a0In the end it is not just the discounts you get on the front end. \u00a0The best thing you can do is get them as experienced as possible, and make sure they are aware of the dangers of driving and the importance of paying attention. \u00a0When they have the learners permit take them every day to drive, put them in situations that they will experience and get them used to ignoring distractions and issues that can\u00a0arise. \u00a0 This may not save you money the day you add them to your policy, but if it helps avoid a ticket or an accident it will be worth more than any discount, let alone if it saved them from injury!<\/p>\n
The last topic I want to discuss is a very common mistake that parents make. \u00a0Even Clark Howard gets this wrong! \u00a0There are certain situations where it is cheaper to put your child on a policy by\u00a0themselves. \u00a0The problem is that while it might save you money it opens you \u00a0and your family up to a very large amount of risk! \u00a0The problem lies in Georgia State statute that if they can prove that you are supporting your child in anyway, they will name you in the lawsuit. \u00a0Your child’s insurance will pay first, but in the case of a serious injury or death it will not be enough coverage. \u00a0Your insurance will not protect you because your child was not a listed driver and the vehicle was not insured on your policy so they have no duty to defend you. \u00a0Even if the judge and jury determine that you should not have to pay anything(very rare cases), you will be\u00a0responsible\u00a0for all of your legal fees which as you can imagine can get very high especially involving death or serious injury.<\/p>\n
Please remember the purpose of Insurance. \u00a0It is not for you to fix your car when you have a fender bender, it was designed to protect you against\u00a0catastrophic\u00a0losses that could ruin you financially. \u00a0Think about it; as bad as it would be to get a $30,000 car stolen from you, wouldn’t it be much worse if you seriously injured someone and had a judgement against you for $1,000,000?<\/p>\n
The safest option is to do it the right way, when it comes to insurance it usually does not pay to try and skimp on coverage. \u00a0The amount of liability you buy is not the most the other person can collect, it is simply the most your insurance company will pay on your behalf! \u00a0If you carry 25\/50\/25 and you seriously injure or kill someone, you will get a judgement against you, and if you do not have anything worth taking, they can garnish your wages fro the rest of your life!<\/p>\n","protected":false},"excerpt":{"rendered":"
What fond memories we have of turning 16… Taking our drivers test, buying a car, driving to school for the first time, or picking up your friends for the first time, many exciting things happen around that age(or at least … Continue reading