Did Your Child Just Start Driving? How To Prevent A Huge Auto Insurance Premium Increase
Unless you live in a city with great public transportation, like Chicago or New York City, being able to drive is essential to getting around. Your child will eventually get their driver's license, and when they do, you'll need to add them to your insurance as a driver.
Since your child is new to driving on their own, your insurance company will see them as a higher risk than somebody who is experienced and has an accident free record. Your insurance premiums will go up, but there are some ways to limit how much it increases.
Have Them Take Defensive Driving Courses
One way to lower your premiums is to have your child take some defensive driving courses. Even though they are new to driving, taking the initiative by enrolling them in defensive driving courses will show that they are a responsible driver looking to decrease the chance of getting into an accident.
Before you sign up your child, make sure to check with your insurance company about if they would be eligible for a discount by taking these courses. Each state has their own laws regarding defensive driving discounts, and if they do, there may be a minimum age requirement for it to have an impact on your premiums.
Have A Great Academic Record
Does your child currently get straight A's in school? You should definitely let your auto insurance company know. A great academic record is another way to show that they are responsible and may qualify them for an academic discount.
Your insurance provider can give you more information, and you may be surprised that they are even eligible for an academic discount when they are in college as well.
Increase Your Insurance Deductible
The biggest factor that determines the price of an insurance policy is the deductible, which is how much you pay when you need to make a claim. While you are taking a risk that your child won't get into an accident, it can help you save a significant chunk of money with insurance premiums. Just make sure you have enough cash on hand to cover the higher deductible if you need to.
Buy A Cheap Car
Newer cars are going to be more expensive to insure, which is why you should consider giving your child a car to drive that is not that nice. It is possible that they may get into an accident, so there is no reason to pay for higher insurance on a car that will need more repairs if it gets into an accident.
For more advice on lowering your premiums, speak with your auto insurance agent.
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