As a parent, when you have a teenage child that is ready to get behind the wheel, you want to insure them in a way that works best for you financially. Whether that child will be driving the family vehicle, or a vehicle of their own, it is important that they understand how much responsibility they are being entrusted with. Before ever insuring a child, it is important to make them earn the privilege by teaching them responsibility. If you add your child to your auto insurance policy and they have an accident caused by their negligence, your premium rates will rise.
Teach the child that they need to be responsible while driving and if possible, get them to help pay some of the additional costs associated with adding them to an insurance policy because they will value the insurance coverage more if they have to help pay for it. Make sure to check your child’s driving record frequently and look for speeding tickets and other traffic citations because they increase the perceived risk of the child who is covered on the policy. When the policy comes up for renewal the premium rates will increase if the risk associated with the child has increased.
Young drivers can qualify for discounts based on good grades. They can also receive discounts for having taken driver’s education classes. For a good grades discount, a child must have at least a 3.0 out of 4.0 grade point average. Encourage your child to do well in school, and sign him or her up for driver’s education if possible, because it will save you money in the long run.
It is important for parents to understand that adding their children to their auto insurance policy is a very cost-effective approach to insuring the child. Deciding to buy a single auto insurance policy for a teenager is too expensive for most parents. In some cases, when a child goes to school and lives on campus, a parent can list their child as a secondary driver on their insurance policy. Whenever a parent adds a child to their auto insurance policy, you can be sure that their insurance rates will increase. However, the cost of adding a child to your current automobile insurance plan will be significantly lower than buying a completely separate one.