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The insurance impact of young drivers
Adding a new young driver to your auto policy
can more than double the cost of your insurance. The actual impact
on your insurance varies according to your state's regulations.
Insurance premiums for new drivers may be based on driving experience,
age or even gender. Young drivers add another peril since some
states permit policy cancellations after such operators suffer
a single accident or violation. So let's focus on ways to control
a young driver's impact on your insurance premium and your peace
of mind.
Reducing
your insurance premiums
- Have your child complete a driver training
class. Classes can be expensive, but you save on premiums and
develop a more competent young driver.
- Seek premium discounts given by many insurers
to students who maintain above-average grades.
- Find an insurance company that charges
premiums based on the car your new driver operates most of the
time. (Many companies automatically assign young drivers to the
most expensive vehicle.)
- Does your child have to drive to
school? If so, expect your company to charge a higher premium
for the increased amount of driving.
- Build a long-term relationship with your
insurer. Some companies reward longevity by forgiving a driver's
first accident or minor traffic violation.
- Help your son or daughter understand that
poor driving habits can result in higher premiums or a canceled
policy. Do everything you can to avoid the prohibitive expense
(and often limited coverage) of substandard automobile insurance.
- Increase your policy deductibles or, for
older vehicles, consider eliminating this coverage.
- If your child owns a vehicle, he or she
should have a separate policy. However, if you share the cost
of the car and its insurance, it may make sense to also own or
co-own the vehicle. Your ownership interest lets you take advantage
of a multiple-car discount.
- Think carefully about giving a young driver
his or her own car. Coverage for young drivers who have full-time
access to a vehicle is very expensive. Make sure you balance convenience
against cost.
Keeping your young driver safer
- Consider preparing your child with a course
in defensive driving as a tool for avoiding accidents and ask
your insurer if it gives a premium credit for such classes.
- Require your young driver to understand,
sign and comply with the Youthful Operator Driver Safety Agreement.
- Be a proper model by using seat belts and
never using alcohol or drugs.
- Provide your child with a well-maintained
vehicle, equipped with safety devices such as air bags and anti-lock
brakes. Also, avoid vehicles that are prone to being highly damaged
in collisions or are vulnerable to "rolling over."
- Control your child's driving privileges...don't
hesitate to curtail or revoke them in response to poor behavior.
- Set high driving standards and test your
young driver. YOU must be certain that he or she can properly
pass vehicles, maintain a correct distance, park, merge and exit,
change lanes make turns, obey speed limits and be aware of pedestrians.
YOU must be responsible for knowing if your child understands
traffic laws and has a healthy respect for the power of the automobile.
Don't let your child become licensed until he or she passes YOUR
driving test. Don't forget to also test your child's ability to
drive under adverse conditions (dark, fog, rain, ice, snow, rush-hour
traffic, etc.).
Don't Trade Protection To Save A
Few Dollars.
You must not let the pursuit of lower premiums
replace the need for proper protection. It's important that your
young driver is protected from the financial consequences of causing
a serious accident. Further, you may need to protect yourself
since you could also be sued for an accident caused by your son
or daughter. You might consider getting higher limits of liability
by purchasing an umbrella policy.
The best advice is to talk to an insurance
expert about a strategy to keep your new driver safer and to maintain
affordable coverage.
Revised: 12/99
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