Categories: AutosNews

4 Costly Mistakes Parents Make When Buying Insurance For Teen Drivers

May 9, 2016

So, your teen is of driving age and you’re looking to get him/her an insurance plan, right? That’s a good thing. That said, you want to make sure that you’re getting the best insurance value for your money.

Many parents often make some mistakes when signing up to get their children a decent insurance policy. Unfortunately, these mistakes can cost quite the sum, drastically ramping up their insurance costs in the process.

In this article, we’ll be looking at some of the major mistakes that parents frequently make when they go shopping for insurance for their teenage children. If you can avoid many of these mistakes, chances are that you wouldn’t have to pay a lot for their insurance.

Not Shopping for Lower Insurance Rates

The first thing you need to know is that insurance rates for teens typically become cheaper every year as they age. So, you should make sure to get insurance quotes for your teens every year. More importantly, shop around for different prices.

If there’s one thing you can be certain of, it’s the fact that prices will always be different. All insurance companies, like Insurance Land, and agents typically have different pricing structures. Get at least four quotes from different insurance agents and then compare them.

Looking for Lower Liability Limit Policies

One of the major mistakes parents make is assuming that their teens don’t need just as much coverage as they need. This is not true.

In fact, teens are more likely to lose their vehicles, get in an accident, drive more carelessly and engage in reckless behavior behind the wheels among other things. Some reports even suggest that compared to seasoned drivers, teen drivers are five times more likely to have an accident. If anything, they probably need more coverage than you do.

So, when you go around shopping for the cheapest insurance policy you can find for your teen driver, you are basically selling yourself short. Parents would do well to go for the 250/500 coverage plus $1 million liability umbrella.

Forgetting to Enroll Your Teen in a Driver’s Education Class

It’s okay to teach your kids how to drive by themselves. You know what is better? It’s simply enrolling them in a driver’s education program. Insurance companies don’t know who you are, what your driving skills are or how well you’ve taught your teen; and they aren’t willing to allow you show them.

So, what can they use to gauge your teen’s dexterity behind the wheel? An officially recognized course or program that the child can attend. This typically attracts a 5 percent discount on your insurance costs. If you don’t enroll your teen in a driver’s education class, odds are that you will pay more on their insurance policies.

Luckily, there are many options available for your teen to take the course. For instance, they could take it online, take one offered by the insurance company, the state’s DMV and a local driving school.

Opting for Lower Deductibles

We’re sure you’re familiar with the term deductibles. But, in case you don’t know what it is, it’s simply how much or what percentage you’re willing to pay out of pocket if you ever need to file an insurance compensation claim.

Many parents often go for policies with lower deductibles because they feel it’s cheaper. Truth is the higher your deductibles, the lower your premiums. In fact, it is estimated that choosing a high deductible plan will help you save as much as 15-30 percent on your collision and comprehensive insurance policies.

Now that you know all these, you can now go ahead and avoid these mistakes whilst looking to buy your teen driver their own insurance policies.

  1. Oscar King, father and freelance writer enjoys sharing the dos and don’ts to raising kids of all ages. If you would like to learn more about Oscar, you can check out his google+ profile.
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