If you have an excellent driving record and drive a stodgy family car, the cheapest option may be to add your child to the policy. With a single car, driven only infrequently by your child, the premiums will be more modest. But if you have a poor driving record or there is an expensive, high-powered car sitting in the garage, the cost of insurance just took off.
The insurance company will assume your child will be allowed to drive all the family cars. Once you put a teen behind the wheel of an expensive car, the premiums rocket. The cheaper option is to buy a low-powered, secondhand car and insure it in your child’s name. The sooner your child starts building up independent track record as a driver, the better.
Now it all comes down to getting the maximum discounts. Auto insurers believe that good students make responsible drivers, so if your child has a grade point average of B or better, this can shave between 5 and 10% off the premium. There are also discounts if your child goes on to college or university, particularly if this means leaving home.
|
Now look at all the safety features that can be installed in the car and, to reduce the risk of theft, fit better locks and an immobilizer. It is never a good idea to teach your own child how to drive. Most insurers recommend specific instructors or courses. Some offer additional discounts if your teen will sign an agreement about driving style, and reward safe driving and no tickets with reductions.
Obviously, any combination of driving with alcohol or drugs is financial suicide. Get as many auto insurance quotes as possible and read all the small print to see exactly what is on offer. Discuss discount options with sales agents before finalizing your decision. It’s possible to save money, but only if you invest time and effort into it.
|
