With today’s shaky economy, we all understand the it is crucial to balance the burden of cost with the assurance of auto insurance. Bring together a combination of these experts, and we can develop a consensus, basic rules, or seven essential commandments when it comes to purchasing insurance for the rookie driver.
The Rules Thou Must Follow
- Thy children shall attend a good, DMV-approved driving school: Don’t waste your money on a shady school. Your child may not even get a license, let alone an insurance policy. Before putting your rookie driver into any traffic school, make absolutely sure that it is approved by your state’s DMV. Usually the DMV’s website has lists of approved schools available to the public.
- Thy children shall maintain good grades: Your smart kid is more likely to get a 15-20% discount on premiums by an auto insurance company. All they have to do is maintain a B average (GPA of 3.0 and up). Save some money by keeping them at their studies.
- Thy children shall complete the graduated licensing system: Most states are not willing give rookie drivers full road access until they have had the proper supervision and training. Until then, expect your premiums to be higher than usual due to the high-risk factor. Time and experience will ultimately lower your rookie driver’s premiums.
- Thou shall not buy thy children new, fancy cars: It’s like being at the grocery store..no matter how much they want the candy, your child needs the broccoli to grow on. Giving your 16-year old the car of his or her dreams (usually that Beamer, that Mustang, that Escalade that they claim all the other kids are driving) may significantly increase your premium. Avoid this by putting them in the older, embarrassing car that’s still in good working condition.
- Remember the deductibles, and keep them high: It’s a risk, but more deductables result in lower premium rates. All the more reason why it’s better to put your rookie driver into the older car. Take it into consideration.
- More cars may equal higher premiums: If you have two or more cars, be careful. Insurance companies like to place the rookie driver’s insurance policy on the most expensive of your cars. Take care to designate your child’s policy to the correct car, which hopefully, is that cheaper, less risky, older one.
- Thou shall seriously think before reducing liability coverage: This is an easy way to greatly reduce your rookie driver’s monthly premiums, but it’s also extremely high-risk. If your rookie driver ends up in a serious, or fatal, at-fault accident and the claim greatly exceeds your liability coverage, your assets and finances will suffer greatly.
With all this in mind, remember that you can keep your rookie driver’s premiums low while keeping him or her well insured. Just remember these three words: play it safe.
Please read these additional articles for more information regarding insuring a rookie driver.