5 Mistakes Parents Make When Insuring Teen Drivers
Do you have a teen driver in the family? Or is your teen about to get a driver’s license? Then you should know how worrisome it is to get them behind the wheel. Not only are they inexperienced but they are prone to accidents as well. Aside from that, you need to prepare for a higher car insurance rate.
Does car insurance have to be very expensive for teen drivers? No. What most parents don’t realize is that there are some things they aren’t doing right on their car insurance. Let’s take a look at the five common mistakes parents with teen drivers make when insuring their vehicle.
Parents do not take advantage of the discounts available for their teens.
While it’s true that teens are expensive to insure, but it doesn’t mean they don’t get discounts. Asking the right questions to your agent will save you a lot of money. There are three most popular discounts for teen drivers:
- Defensive Driver Safety Courses. Some insurers offer discounts if your teen has taken an approved safety driving courses.
- Good Grades. If your child has a B average or better, some insurers offer discounts. Ask your agent if they offer discounts for good grades so you can save on premiums.
- Living Away from Home. If your teen is already in college more than 100 miles away without a car, inform your insurer. Most companies will give discounts.
Parents do not assign drivers to certain vehicles.
Some insurers will let you assign cars to specific drivers. This prevents teens from driving the most expensive car to insure. Take, for example, you have three cars:
- 2015 Audi R8 – Your Car
- 2012 Ford Edge SUV – Your wife’s
- 2010 Ford Fiesta – Your teen
If you don’t assign drivers to those vehicles, insurers may immediately assume that your teen is driving your Audi R8 (the most expensive car to insure). Knowing that teens are riskier to insure than experienced drivers with good records, this would lead to a huge increase in premiums.
Parents aren’t getting the right uninsured/underinsured motorist coverage.
There are some cars on the road that has little to no insurance coverage. Thus, when your car is totaled in an accident caused by someone who has little coverage, you won’t get fully reimbursed.
You might ask how much you UM/UIM insurance you need. A good recommendation is you get the same amount as you do with bodily injury on your own policy.
Parents get low liability limits.
As mentioned above, teens are prone to getting into accidents. Most teens usually drive with friends. More people in the car also results in more liability.
How much liability coverage do you need? Talk to one of our agents so they can understand your situation. Our agents know the right questions to ask to determine the coverage you need.
Parents don’t get umbrella policies.
Umbrella insurance covers the cost of an accident that exceeded the limits of your regular insurance. If you’ve never considered this coverage before, it is a good idea to add it when you have a teen driver. Although umbrella insurance is an additional coverage, the good news is it won’t cost you that much.
When it comes to insuring your teens, there are a lot of variables at hand. If you only add teen drivers to your existing policy, then you won’t get the best rate there is. The most important thing you can do as a parent is to invest time talking to your agent.
At Velox Insurance, we strive to give you the best car insurance coverage at a reasonable price no matter what age you are. If you want to get a quote from us, you can visit our page or visit our office today. You can also give us a call at 1-855-468-2569.
