If you just got your license or if your teen just got their license there are a few steps you can take to keep the insurance cost down. But, initially, expect to pay a hefty sum to insure your teen driver.
In the Springfield area of Massachusetts you are looking at paying about $2500 for for the year for a new driver – if they have taken a certified driving course it goes down to about $2300 – then the rates go down from there depending on what town you live in.
Adding a teen driver to your car insurance policy can boost rates by 20 percent to almost 200 percent, depending on circumstances including type of coverage and type of car the teen drives.
It is still a good idea to get them their license when they are first eligible because once they reach three years of having an active license their rate will significantly go down – then again after 6 years – so get them licensed sand start the clock ticking.
But you must know that once they get their license they must be added to your policy as an occasional driver – this will definitely raise your rates. You can contact us for a quote – we will get you the best price we have.
Your other option is to license the teen, but don’t let him or her drive your car. It’s called a named driver exclusion, and it means the insurance company won’t consider the teen when it calculates your rates. But you are agreeing that the child won’t drive your car – and the insurance company will not pay for the damages if he or she wrecks it.
Be sure to shop for a company that offers a “good student discount”. A good student discount can save you as much as 20 percent. A good student discount is among the biggest money-savers you’ll find for your teen, decreasing a typical full-coverage bill by an average of 12 – 18%.
The usual qualifiers may include being a full-time enrollment in high school or college, average grades of at least a “B,” Dean’s List status, or a ranking in the top 20 percent of his or her/class. Often the discounts carry over even after the student has left school, up to a certain age. Check with your agent.
If your teen leaves for college and won’t drive your car, you may want to see if your insurer will temporarily remove him or her from your policy. Check with your agent.
Most importantly – and the ultimate goal is to stay accident-free and ticket-free. You don’t want to be on the wrong side of an accident claim with a teenager on the policy. Insurance companies also can levy surcharges after accidents or major traffic violations. With a teenager on the policy, that surcharge gets multiplied again.
Let’s say your $100-a-month liability car insurance bill doubled when you added your teenager to the policy. Then you have an accident, triggering a claims surcharge of at least 25 percent. On a policy by yourself, your bill would rise to $125 – with the teen, it goes to $250. Not good.
As a parent or if you are the driver yourself you must do all you can to never have an accident. Just because you are young it does not mean you are supposed to have an accident – the key is NO SPEEDING – if you can do this the chances of you having an accident go way down. Remember no speeding – that is what leads to all the problems.
And to the teen driver themselves – no texting while driving. That split second you are looking away can cause an accident – please concentrate on driving safely and save your testing for when you get to your destination.
For the parents – the National Association of Insurance Commissioners released a report showing that teens whose parents set rules and were engaged with their teen drivers were 50 percent less likely to become involved in a crash. So be a big part of their driving situation and teach them the right way to drive.
Lastly, be sure to review your policy with your teen – help them to understand what type of coverage they have and what is covered and what is not covered – this will help them become a better driver.
If you have any questions be sure to call my office for assistance 413-543-3800