Like any automobile insurance, premiums are based on a number of factors. Gender, driving record, prior liability limits all play a role in your insurance rate, but nothing has more of an impact on your insurance policy premium than adding a driver and even more so a youthful driver.
There are a few things you should know about adding your teenager to your policy. First if your child has a Learners Permit then most likely they do not need to be added to your policy, you do however need to make your insurance carrier aware that your child is driving but has only a Learners Permit. Once your child gets their Operators License, they will need to be added as license driver in your household.
Keep in mind that young males typically cost on average more to insure than females, either way you will see a distinct change in your premium. To offset the cost of adding your teenager to your policy there are discounts that are available to you. All insurance companies are different but most offer these basic discounts.
The discount that typically offers the most savings is the “Good Student Discount” this applies to high school students that have a 3.0 GPA or better. Good grades equal lower premiums.
If you have a teenager that is almost at driving age or will be getting their Operator License soon, talk to your agent about your options for minimizing cost and see what discounts are available to you. Knowing what’s in store will help you make the right decision.
Another discount is the “Trained Driver Discount” this discount is given when your child has taken a trained driver course, usually given through the school, there are however other options for taking this course. This discount is not as much as the “Good Student Discount” but the course is inexpensive to take and could save you up to 10% on your policy.
Most importantly, your teenager should avoid violations and accidents whenever possible, as most violations and accidents stay on your driving record for three years, as a result your policy will also take a three year hit.
Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.
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