Most adults recognize the importance of obtaining auto insurance. Whether they were the victim of a traffic accident or the cause of one, they know that the auto insurance helped them to avoid some hefty fees. When parents start to see their children venturing out on to the road, they know they have some new obstacles to overcome with car insurance.
Adding Teen Drivers to an Existing Policy
Evaluating the costs is one of the issues that appears when teenagers begin to drive. In Texas, they are required to obtain auto insurance. In some cases, parents add their teenagers to their existing policies. Naturally, this action makes the price of the auto insurance policy rise. However, having all of the policies bundled together is usually less expensive than maintaining separate auto insurance policies. The issue arises when parents need their children to pay for their own insurance. Parents who are paying for their children’s insurance will likely want to opt for a bundled insurance plan. Those who are not should consider alternatives.
Expect High Rates
At some point, you may have looked at your own policy and wondered where all of the costs associated with your auto insurance payment come from. However, you should not expect that your children’s policy rates are going to be lower than yours. In fact, younger drivers generally have higher rates because they are considered a more at-risk category. Speak with your auto insurance provider to find out at what age that designation is dropped. Knowing that a discount will eventually arrive sometimes helps to make larger payments seem less irritating now.
Paying for Their Own Insurance
If parents add their children to their own insurance policies, they must trust that their teenagers will pay them the money for the plan. If they don’t, then the parent will have to make the decision to pay the auto insurance themselves, or they will need to tell the teenager that he or she cannot drive anymore. In the former situation, the parent is not teaching the child responsibility about paying for his or her own auto insurance.
Discounts for Good Drivers
Explain to your children the importance of maintaining a good driving record. They will likely notice this impact more if they are paying for their own auto insurance plans. Essentially, many companies offer a discount to individuals who maintain a good driving record. However, teenagers do not have the experience behind them to show the maintenance of such a record. Usually, it takes a few to several years to build up the credibility needed to secure this discount. Teenagers who are paying for their own auto insurance will likely be eager to obtain the discount and to keep more money in their bank accounts and for recreational activities.
Discounts for Good Students
If you’ve been begging your children to start paying more attention to their studies, your auto insurance plan might be just the way to meet that goal. Many auto insurance companies provide discounts for students as long as they maintain good grades. Let your children know that hitting the books more often is a way for them to save money and to have a better chance at obtaining that scholarship they so desperately want. Different auto insurance companies have various policies. Some will require higher grade point averages than others.
Look into Different Affiliations
For yourself, you can check to see if the place that you work for makes you eligible for any auto insurance discounts. If your children have a job, you can do the same for them. Furthermore, you should find out if the college or university that they attend offers any discounts to students at the school. Sometimes, maintaining membership in an organization or club allows people to receive discounts on their auto insurance too. Keep in mind that such discounts are not active 100 percent of the time. Adding them to your account, however, can ensure that you receive them when they do become active.
Promote Good Driving Habits
As you can see, a number of auto insurance discounts have to do with how well the driver operates the vehicle and how safe of a driver he or she is. Helping your children to maintain good driving habits is important. While no one likes to be labeled as a backseat driving, sometimes it is necessary in order to ensure that your children are driving safely. Also, speak to them about intoxicated driving. Let them now that you are available to give them a ride. This point is not important only for auto insurance, but for life as well.
When your teenagers finally obtain their license, you likely feel some sense of relief that you no longer have to cart them around, but you also may feel anxiety about topics such as auto insurance.