On average, what does it cost to add a teen to your auto insurance?
Question:
Answer:
There is no "average" cost to add a teen to your auto insurance, but once they obtain their license, you must report it to your insurance agent. Other information to consider:
1. Depending on the company you are insured with, your new driver may be classified as a "principal" operator or an "occasional" operator. As an example, suppose you and your husband each have a car and now your child receives his or her license. You now have two cars and three drivers. Your child will be classified as an "occasional" operator and their risk will be assigned to the car they will drive most of the time. Note that they can drive either car, but their rate will apply to the one they use most often.
Now suppose you have three cars and your child gets his or her license. They would be classified as a "principal operator" on the 3rd car because in theory, they have access to at least one car 100% of the time. Naturally, a principal operator costs more to insure than an occasional operator. One other thing - it does not matter if you say your child won't have access to that 3rd car. If they have a license and they live in your house, the insurance company will assume they have access to the car.
2. Some companies offer good student discounts. These can reduce premiums by a meaningful amount. Find out how much you can save with the discount. Tell your son or daughter they will have to pay this amount if they lose the discount. That should be incentive to keep their grades up.
3. If you don't have one already, consider purchasing a personal umbrella policy. It is a fact of life that your auto rates will go up by quite a bit after adding a teenage driver, but spend the extra money on an umbrella to protect your assets. A $1,000,000 umbrella policy covering the typical one-house, two-car family would cost you about $300 per year. Now if your child (or anyone else in your family, for that matter) gets into a bad at-fault accident, you'll have up to $1,000,000 above your auto liability limits to pay for the claim. It is a tough, but unavoidable fact of life that teens get into accidents much more than experienced drivers and the accidents they have are worse than average. For $300 a year extra (over the cost of adding them to the auto insurance) you can have peace of mind that you won't lose your house after your child has a bad accident that injures or kills someone.
In summary, it will not be inexpensive to add your teen to your policy. Unfortunately, you will have to bite the bullet and pay the premium.
For me it doubled. However a friend of mine says that if you have full coverage your child is automatically insured just because he/she lives in the house and is a licensed driver. She said she got that info from her insurance agent.
The last quote I heard was $100/month, OUCH!
Here are 10 suggestions to help lower premiums and keep your teenager's license free of violations:
1. Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean. Make safe driving a family project. In some states, restrictions apply to new drivers. Parents should know what the laws are and insist that their sons and daughters follow them.
2. Set a good example. Do you break the speed limit and tailgate? Do you yell at other drivers when you're behind the wheel? If you do these things, how can you expect your children to act differently? Start watching your own driving long before they get their license and you'll have a much easier time convincing them to be safe drivers. Remember, actions speak louder than words.
3. Put your teenager on your policy. Rather than setting up an independent policy for your teen driver, put them on your auto insurance policy as an additional driver. In this way, all the discounts applied to your policies will be passed on to them.
4. Pay your teenager to get good grades. Here's a creative tip — find out how much you save if your teenager gets a good grade point average and pass it on to them. Usually, having a 3.0 or higher GPA will reduce your car insurance premium by 10 percent. Figure out exactly how much this saves you and give that money to your teenager. This accomplishes two things. First, it provides a direct reward for academic performance. Secondly, it motivates them to continue getting good grades.
5. Enroll them in driver education courses. Discounts are available for teens who take recognized driving classes. But call your car insurance company to find out which schools are covered before paying big bucks.
6. Steer clear of sports cars. Don't try to live vicariously through your teenager by giving them the hot car you couldn't get in high school. Getting your teenager a safe car to drive, with the latest safety equipment, will lower your premiums. Not only will you save money on car insurance, but fast driving will be less of a temptation.
7. Get their support. Don't assume that your teenager wants to vacuum clean your wallet. Ask them for help cutting costs and point out that you will share in the savings (see rule #4). Tell them how much car insurance costs and show them how this fits into the family budget. If nothing else, you will score points for treating them as adults.
8. Talk to your kids about drugs and alcohol. This is a tough subject to broach with teenagers, who think they have everything under control. But the consequences of saying nothing can be catastrophic. Take the time to lay down some guidelines in this important area.
9. Take traffic school to beat tickets. Once a ticket is on your teen's license, it takes months to get the violation removed. Instead, encourage them to take traffic school if the judge allows it. A day spent thinking about the consequences of unsafe driving can bring rewards for years to come.
10. Ride with your teenager. Your teenager was a safe driver last year when he or she got a license. But what's happened since then? Let your son or daughter take the wheel while you sit back and relax in the passenger seat. If you see them doing something that breaks rules or seems unsafe, point this out in a diplomatic way. If they are doing a good job driving, praise them for their efforts.
If you follow the above suggestions, you will find that you can make it through the teenage years safely — and without paying an arm and a leg for car insurance. It just takes cooperation and understanding from both sides of the generation gap.
There's no such thing as an average amount, since the amount depends on a variety of factors. Call your agent and you will get the exact amount.
Girls are cheaper than boys. Grades make a difference too. Driving record, ZIP code, type of vehicle, usage, credit rating...and the beat goes on...
Here http://hort.net/+1i5y is a good resource on car insurance and the best plans.
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