When it’s Time for Teenagers to Take the Wheel
They have matured past the tricycle phase, grown beyond the bicycle stage, and is ready to try their hand at something with an engine. Your teen says they are ready to drive. Are you ready?
Whether or not you’re emotionally up for the task, you can at least prepare yourself financially. Take the following steps before your teen takes the wheel.
Assign for savings:
Which car will your teen drive? If possible, ask your insurer to assign your teen to the car with the lowest value. Keep in mind that this must be the car that the teen drives. By linking your teen to the least-valuable car, you can save on insurance premiums.
Boost your coverage:
If you currently have minimum liability insurance, consider increasing your coverage. You may be fortunate to have a responsible teen, but statistics are still stacked against him. Research shows that teens are more likely to be involved in car accidents than adults, and their chance of being held accountable for a crash is twice that of adults. You’ll be grateful for greater coverage if your teen has an accident that results in costly repairs or lawsuit payments.
Balance the cost:
As you raise your liability, you may pay higher premiums. To balance this, consider raising your deductible. Higher deductibles typically result in lower premiums. You can apply this savings to your increase in overall coverage.
Make the call:
As with any life changes that may affect your insurance, contact your agent to discuss what solutions are best for your new teen driver.