Having your newly licenced teenager drive can cause mixed feelings. For one, it can be terrifying. Also, it can be a relief seeing that you no longer have to pay for cab fees, accompany them for errands and drop them at school.
Teenagers, especially those newly licensed are more prone to accidents as they are easily distracted not forgetting they are inexperienced drivers. As such, handing over the car keys to a teenager necessitates the need to get your teen an insurance cover or add them to your insurance policy.
Teen insurance can be expensive! However, you can manage these costs depending on the insurance provider you choose, the policy you opt for, the state you live in, the type of vehicle you hand over to the teenager not forgetting whether the teen qualifies for discounts.
If you’re looking for car insurance in Toronto, check out Surex.
Here’s everything you need to know about teenage car insurance.
Table of Contents
Assign a low-cost car to your teen
If you want to keep the insurance premiums low, assign them a low-cost car. This will keep the premiums low. This makes sense given the high costs that may be incurred when repairing or replacing luxury or expensive vehicles. If you have the option of giving the teen a used car as opposed to a new one, you will save a good amount on the premiums. However, you want to ensure that the car is free of mechanical problems.
If purchasing an old car, ensure you get a full inspection done. And if an old car has been lying in the garage for quite some time, have a comprehensive mechanical check done before giving the teen. This is not only important when it comes to insurance claims but also ensures sufficient safety standards are maintained.
Here are four factors to consider before assigning your teenager a car
The thrill of finally being able to drive unsupervised can be exciting to a teenager. Fast speed is common with most teenagers. Given that a car with a powerful engine will encourage teenagers to speed up, consider giving them a low horsepower car.
Research shows that small cars have a higher death rate as compared to bigger cars. As such, assign your teenager midsize or large cars.
You do not want your teenager driving a car with low safety ratings. Better be safe by purchasing a car with a high safety rating for your teen.
For maximum safety, ensure your teen is driving a car with an electronic stability control feature. This enables them to maintain control of slippery roads and curves.
Shop around for the best insurance policy
Luckily, you will have different insurance options for your teenager. Among the factors you should consider before picking an insurance company includes the rates and the policy provisions. Ensure you get different quotes from the insurance companies. If it seems like too much work, visit Surex and get matched to a licensed insurance advisor. While every insurer prices their services differently, getting various quotes will help you wade off overpriced vehicle insurance policies for your teens.
Add the teen to your policy
If you have a good vehicle insurance policy, you can add the teen to the policy. This enables you to pay fewer premiums. However, if the teen gets to an accident, you might be required to remit more premiums. While adding the teen to your insurance policy is not a bad idea, it may make them codependent on you.
If you want to teach them on insurance responsibility, ensure they get their policy and remit the premiums on time.
The power of good grades!
The power of good grades applies even in vehicle insurance. If your teen gets good grades, they can have access to student discounts. While discounts vary, you will be sure to save some amount that can be channelled elsewhere.
Let the insurance company know if the car will not be in use for long periods
For instance, your teen may attend college miles away. If they do not go to school with the car, remitting expensive premiums for a car or is barely used that is sitting in the garage may be a waste. While cancelling the insurance premiums is not a good idea, inform the insurance provider and detail the period under which the vehicle will not be in use. The insurance provider may reduce the premiums.
If you need to use the car sometimes, ensure you check with the provisions of the insurance provider to ensure that it will be covered.
Encourage good driving habits
Nurturing responsible driving habits takes a lot of patience. While getting a teenager’s car insurance is paramount, encourage safe driving. For instance, encourage your teens not to use the phone while driving, to concentrate on the road and observe all traffic laws.
This brings the importance of ensuring your teen learns responsible driving habits more than they get during the driving lessons. Also, if your teen keeps a clean driving record, they can receive a good driver discount. However, most insurers require people to have a clean license of 3-5 years before they are awarded the discounts.
Enrol the teens in the graduated driver’s licensing program
These are available for teens above the age of 16 years. This program will equip teenagers with the required driving practices.
It has 3 steps;
The Learners permit
The learners’ permit is issued after a person passes the multiple-choice question and the eye exam. A teen who has this permit can drive with a person who has a full driver’s license.
A person can undertake this test after having the learner’s permit for 12 months. If it’s a new driver, they can only have one passenger.
This is available 12 months after a person has earned the G2 license. With this license, a person is not prohibited between the time they should be on the road. However, they MUST still observe the given road safety measures.
Monitor your teens driving habits
Accidents, even minor ones can be expensive. Even with an insurance policy, you may want to monitor your teens’ driving habits. This is especially important if you have a usage-based car insurance policy. The fewer miles you drive and the safer you drive, the fewer premiums you get to pay. If your teen can prove that they are less likely to be involved in car accidents due to their precautionary driving habits, you will save some coins.
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