06 Nov Our Agents’ Top Ways to Increase Savings on Auto Insurance
As parents, we’re rarely ready for our children to grow up. Time flies, and suddenly they are asking to borrow the keys to the car! (Weren’t they just in diapers?) Having a teen who is ready to start driving is not only nerve-wracking, but it’s also a tremendous milestone in both of your lives. This is an exciting time for your family! However, it also includes new responsibilities for both the teen and the parents.
Since our founding in 1931, we’ve seen it all. Working with customers on their auto insurance over the years, there are two topics that people need to know about. The first is simple steps on how to decrease their auto premium. The second is how to handle a new teen driver–should you add them to your policy or give them their own? Let’s take a look:
6 Ways to Decrease Your Auto Premium
Let’s face it, teens can be expensive. (Have you seen the new iPhone prices?) When you add your teenager to your auto policy, the premium will inevitably go up due to the increased level of risk now on the policy. What many people don’t realize, though, is there are discounts available and actions you can take that offset this increase in cost. Here are the big ones:
Good Grades – Some insurance companies offer discounts to teen drivers who have good grades.
Accident Prevention Course – Sometimes, enrolling in a driver’s education or defensive driving course can decrease your premium, especially in the case of teen drivers.
Safe Driving – Sometimes accidents are unavoidable, and one accident can cause your policy premium to sky rocket. Talk to your teen about safe driving practices such as removing distractions (ahem, cell phone) from the car and being alert.
Telematic Discounts – The use of usage-based car insurance devices can monitor your teen driver’s habits while you’re not in the car. Good driving behaviour can sometimes lead to discounts.
Safe Vehicle – Choose your vehicles wisely. The more safety features it has, the more likely you are to pay less on your auto premium.
Bundle your Services with one Agent – Bundling your home and auto with the same agent often provides efficiencies in time and money.
Should Your Teen Driver Be Added to Your Auto Policy?
Whether a teen or adult driver is added to the parent’s policy ultimately depends on your particular situation. For example, if a teen has their own car and holds the title, then they need to take out a policy in their name. If, however, the title is in the parent’s name then they can be added to the parents’ policy.
It’s important to recognize the pro’s and cons of adding your teen to your auto policy. We’ll begin with the down side: if the teen gets into an accident or has a bad violation it can have an impact on the policy premium. What many people don’t realize, though, is there can be substantial cost savings that come with adding your teen to your policy that may outweigh the potential negatives.
The largest benefit involves cost savings. Specifically, adding your teen to your auto policy establishes a history of insurance coverage for them. Insurance companies consider uninsured drivers “high risk,” and adding them to your policy will give them “proof of prior” insurance coverage. When they eventually get their own insurance, they can get premium relief due to that prior coverage.
At the end of the day, it’s up to you!
No parent is ever really ready for their children to grow up, and when they get to driving age, there is a lot to consider. By acting wisely, you can significantly cut the cost of your teen car insurance premium. But one thing you shouldn’t have to worry about is your teen’s auto policy. Between understanding your choices and taking advantage of numerous discounts, the process doesn’t have to be a daunting one. So, when you’re ready, come in for a quote or give us a call. We’ll walk you through your options and make sure you feel comfortable with the choice you ultimately make.