When the time finally comes for your child to hit the road, they can be a costly addition to your premium. However, there are a few ways to successfully combat this price increase.
There are several things new drivers can do to help keep their insurance prices as low as possible. First, grades go a very long way with most insurance companies. A B-average report card can save an enormous amount of money. Wondering if your current policy includes a good student discount? The best indicator is to think back if you ever submitted a report card to your insurance company. This type of discount requires annual updates. If the company isn’t made aware of your child’s grades or improvement in grades, you likely are missing out on some savings for your student driver. While agents and their staffs have the best of intentions, it is possible for a discount such as this to be missed or dropped from your current coverage. An added perk to the good student discount is how long it lasts. This discount is valid during high school years and with some companies even continues through college years up until the driver reaches 25 years of age – which could mean up through graduate school! Is your child attending college over 100 miles away and leaving the car at home? This can qualify your driver for savings, as well.
In addition to a good student discount, a young driver can also receive a large discount for taking and passing driver’s training. Make sure your insurance agency has a copy of your child’s successful completion of this course in order to obtain this discount.
While new drivers themselves can impact their own rates significantly, there are steps parents can take toward keeping the rates low as well. Credit score, claims and tickets all affect the rates. When your child is on your policy, anything that affects your rates will affect theirs as well. Also, be sure to call in and get a quote for the vehicle you’re looking to add for your new driver to insure your expectations concerning your new premium match reality. It is wise to do this prior to purchasing the vehicle. With young drivers, just like with anyone’s policy, the value of the vehicle directly impacts the rate implemented. Meaning, for example, a new Mustang will be drastically more expensive to insure than a used Civic.
Finally, there is a considerably new feature some companies are utilizing to help decrease their clients’ rates. Some companies are installing devices in vehicles in order to track motion. Rapid acceleration, quick breaking or violent movement of the vehicle get recorded by this device. A lack of movements like these can mean up to a 30% discount in rates. A few companies that currently promote devices like these include Progressive and SafeCo. Progressive’s program is titled “Snapshot” and SafeCo’s is titled “Right Track.” Below is a link that provides a visual explanation for how the SafeCo Right Track device functions.
While having a child behind the wheel for the first time can be scary, hopefully now their insurance doesn’t have to be.
For questions concerning this article or any other post by the Dean Ballenger Agency, don’t hesitate to call us at (317)867-5433.