Parents love to see their children grow up and enter new phases of their lives, but along with the pride is the understanding that each time they level up, the expenses go up too. Gone are the days when your son or daughter would be happy with their five-dollar allowance. School costs, extracurricular activities, and even just hanging out with their friends become more expensive as their tastes and interests mature. One of the more expensive shifts is when they learn to drive. Even if they only borrow your car, you are going to have to get them on your insurance. And the premiums for young drivers can be shocking. Fortunately, there are some tactics to reduce the premiums.
- Higher Deductibles: Insurance companies usually have a few options for types of coverage and the amount of deductible required. You can start your search here, www.rabbitfinance.com/car-insurance where you will find cheap premiums. Essentially a higher deductible means that you have less insurance coverage, but they don’t promote it in those terms. Regardless, it is less money from you at the start of coverage, and if your young drivers manage to keep from having any accidents, then it is a win for you.
- Choose a Safe and Inexpensive Vehicle: Insurance companies partially base their premiums on the amount of money they potentially need to pay out after an accident. A second-hand low performance car with a good safety rating is the best way to go. But you will have to listen to some grumbling from your teen if they were hoping for something a little more relevant.
- Black Box Technology: A relatively new bit of tech on the market is something called the black box. It is a device or sometimes simply an app for a phone, that monitors a person’s driving habits wherever they go. Statistics can be derived from this that the insurer can use to determine what level of risk a driver represents. Insurance companies compare speeds to traffic and road conditions. An additional benefit from this technology is that young people who drive with a black box installed are 40% less likely to be in an accident. This builds in accountability, and it may just save you more than money.
- Driver’s Education: If your teen has completed a driver’s education course, most insurance companies will automatically make a deduction to their premiums. It is a sign that they have received proper training and that they at least understand what safe and responsible driving looks like.
- Adding Your Child to Your Own Policy: Instead of taking out a fresh policy most companies allow you to add your son or daughter to your policy as an additional driver. If they are not the primary drivers for the vehicle in question, they will be in the driver’s seat less often, and therefore qualify for a lower premium.
There are a few other ways to get a lower policy, but the most important thing you can do is teach your son or daughter the value in driving responsibly. The longer they can go without having an accident, or getting traffic violations, the less you will need to hand over in premiums.