« Auto Insurance
a teen driver is often an additional cost for many parents. Many
companies consider drivers under the age of 25 a higher risk, and
this often translates into higher premiums. Here are some tips from
the National Association of Insurance Commissioners (NAIC) to help
you get the best value for your auto insurance dollar.
1. Teen Driver Facts
According to the American Academy of Pediatrics, one-third of deaths
of people ages 16 to 20 are due to motor-vehicle accidents. Thats
more than 5,000 teens a year. Faced with those statistics, its
important to view teen driving as a privilege, not a right.
2. Establish Ground Rules
Insuring a teen driver will result in additional costs for you,
no matter which insurance policy you choose. However, how well your
teen respects the privilege of driving is a factor you can control.
Lay some ground rules for safe driving before your teen ever gets
in the drivers seat. Set up driving rules, including:
Hours during which the teen can and cannot drive
Number of friends allowed in the car at one time
Number of miles teen is allowed to drive per day or week
You may also want to consider setting up a driving
contract with your teen. The contract should clearly list the teens
duties and responsibilities when driving and caring for the vehicle
and should be signed by both of you.
3. Purchase a vehicle or add
You may not want to purchase a car specifically for your teenager,
but adding another driver to your policy can be costly. For example,
if you drive a newer, expensive sports car, adding a teen driver
may considerably raise your premiums. However, a modestly priced
economy car with liability coverage may be more appropriate for
your teen. Make sure you discuss options with your insurance agent.
4. Give complete, accurte information
When you call for a quote or fill out an application, give complete
and correct information, such as make, model and year of the car
the teen will be driving. Since your premium quote will be based
on this information, it is very important that your information
be as accurate and complete as possible.
5. Shop Around
It pays to shop around before buying insurance. Different companies
can offer noticeably different premiums. For example, if your child
is an honor roll student, passed a drivers education course
or has a job, some companies may offer a reduced premium. Some discounts
Two or more cars on a policy
Participation in driver education courses
Good student driver under age 25
Airbags or other safety equipment
Auto/home insurance on same policy or with same company
6. Consider revising coverage,
You may reduce your auto insurance costs by raising the deductibles
on physical damage (collision and comprehensive) coverages. Be sure
to review your current deductibles to determine whether you can
afford to absorb a larger portion of your loss in the event of an
accident. Also, consider lowering or eliminating physical damage
coverages on older vehicles unless a lienholder, such as
a bank, requires it.
7. Regulary review your policy
Regularly review your policy to make sure the basis for your premium
is as accurate as possible. Here are some things that can affect
Adding or removing a vehicle from your policy
Teen graduates from high school or reaches the age 18
8. Get more information
For more information, contact your state insurance department. You
can link to your insurance departments Web site by visiting
www.naic.org. Click on State
Insurance Web Sites, then click on your state.
The National Association of Insurance Commissioners
is a voluntary organization of the chief insurance regulatory officials
of the 50 states, the District of Columbia and four U.S. territories.
The overriding objectives of state regulators are to protect consumers
and help maintain the financial stability of the insurance industry.
If you would like more information, please contact the NAIC Communications
Department at (816) 842-3600 or send e-mail to email@example.com.
This article is © National Association of