Adding Your Teen - Insurance Dos and Donts

When you allow your child to begin driving your car, you will find teen insurance premiums are very high. Teen drivers are considered highly risky because of a number of factors; among these reasons, teens have not been driving long enough to learn safety techniques, and they also tend to drive faster and more distracted. Insurance companies know of these dangers, and they will penalize you with higher rates each month. To keep rates as low as possible, consider some do’s and don’ts.

Do Require Driver's Ed

Driver's education classes can reduce insurance premiums with most companies. Before your child even takes a driver's exam, ensure a driver's class has been completed. Submit this information to your insurance company. Further, you may require your child drives with a learner's permit longer than the state actually requires. Many insurance companies have noticed longer periods with a permit reduce the cost of insuring teenagers, and they will pass these savings on to you. Make sure your teen drives with you in the car for 6 months to 1 year after receiving a permit.

Do Submit Good Report Cards

Good students have a lower incidence of traffic accident and other driving issues. If your child has good grades, your insurance company will usually extend a good student discount. You can submit report cards directly to the insurance company. This will allow you to save money at the same time as it reinforces good study skills with your child. By explaining this is one way to make driving less expensive, you can encourage your child to keep grades high and continue the good work.

Do Not Permit Distractions

Distracted driving is a huge problem for all drivers, but teens have a higher rate of issues. You can eliminate the temptation by not permitting an ipod or CDs in the car. You can also reduce the problem by restricting text messaging capabilities on your teenager's phone. Some states have passed laws stating no teenage drivers are allowed to use an ipod, music player, or phone while in the car. If your child is ticketed for this behavior, your insurance premium will go up. Another major source of distraction is young passengers. Most states restrict the number of young people permitted to ride with a driver who has just received a driver's license. If your state has put this law in place, it is up to you to enforce it in most cases.

Do Not Permit Breaking Curfew

The costliest teen accidents occur late at night. Even if you do not have a curfew in your home, the state will place a curfew on a new driver's license. You should ensure your son or daughter has returned home by curfew to avoid a ticket and also avoid dangerous circumstances. Talk to your son or daughter about drunk driving as it is one of the costliest mistakes a young driver can make. States now enforce a no tolerance rule for young drivers, meaning even one drink before driving is punishable by law.

 

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