Page 32 - BusinessWest September 5, 2022

Counting the Cost
How to Save on Your Teen Driver’s Car Insurance
By HUB International New England
When do you need to list your teen driver on your car-insurance policy, and how can you make this addi- tional coverage fit in your budget?
It is certainly not inexpensive to get car-insur- ance coverage for a new teen driver. When a teen driver is added to their parent’s policy, the typical insurance premium for a one-car family is likely to increase by 40% to 50%. If you’re a multi-car family, then you will probably see your insurance rates rise even higher. And if you’re opting to reward your new driver with a car and expecting them to secure their own insurance policy, you should prepare yourself — or your teen — to pay at least a couple thousand dollars in car-insur- ance costs.
So we understand why parents might want to hold off on getting auto insurance for their teen driver until absolutely necessary. However, even if you think your teen will only occasionally be borrowing the family car, the fact is they are now a licensed household member. As such, if you do not add them to your current policy as a covered driver, you risk being denied by your insurance carrier for any future claims, having your cover- age terminated, or both.
In addition, should you decide you want to shop around for a better car-insurance rate, you will also need to make sure your teen driver is
• Investing in accident forgiveness can limit the financial impact in the event your teen does get in a car accident. Since 16-year-olds have higher crash rates than drivers of any other
age, we recommend that our clients with teens strongly consider this endorsement, which can cancel out the surcharge points that are typically assessed by your insurer after an accident.
“
can not only help you keep an eye on your teen when
they are on the road, but also earn you discounts on
”
• Sharing a vehicle with your teen rather than giving them their own vehicle may allow you to classify your youngster as an occasional driver rather than the primary driver, which is another excellent way to keep your insurance rate lower. If you decide, however, that your teen will need a car of their own, it may make financial sense and keep your insurance
listed on all of your insurance applications so that you get an accurate quote and adequate coverage.
Six Tips for Saving Money
At HUB International, we have several strate- gies for saving money that we discuss with our clients:
• You can take advantage of discounts such as Good Stu- dent, which rewards teens with a grade point average of ‘B’ or higher. If your student is eligible for this discount, it may save you hundreds of dollars on your car- insurance premium.
Monitoring your teen driver with today’s technology
• Completing defensive-
driving courses can also earn
you and your teen significant monetary credits toward your policy premium. Even more, your teen will hopefully drive away from this course with a better understanding of how to keep
safe behind the wheel. Since even minor fender benders can drive up your insurance costs, it’s critical that your teen — as well as all other fam- ily members listed on your policy — do their best to keep their driving record clean of any acci- dents and moving violations.
costs down to assign them as the primary
Teen
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your car-insurance premium.
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