When teens get their driver's license, insurance becomes a big part of their expenses. Here is an article by Vinay Khanna explaining about teen insurance.
Should Teenagers Have Auto Insurance?
When teenagers obtain driving license, parents naturally worry about their children. There are valid reasons why parents should feel this way. Statistics reveal that most teenagers drive the vehicles in a reckless manner and they tend to exceed acceptable driving speed limits, without disregard for personal safety. There are several pros and cons in including the teenagers in your current insurance policy or a taking a new policy for them.
Pros in Including Teenage Drivers in Your Insurance Coverage
• It is very easy to extend your options of insurance coverage to your teenage child. All the limits, coverages, and deductibles would apply to the teen also. If you are providing your child with a new car, you could even customize the protection coverages of the teen, such as collision coverage, comprehensive coverage, etc. to ensure safety of the new car.
• If you present a new car to your child, you would qualify for the discount that most insurance companies offer for multi-car policies. Nearly all insurance companies offer significant discounts when you take insurance coverage for more than one vehicle under multi-car insurance programs.
• On most occasions, the insurance company might increase the amount of the deductible when you add your teenage child to the present coverage due to the perception that teenagers are not only inexperienced but are also of higher risk. The discount on adding a new car along with the teenager would result in offsetting the additional cost.
Cons in Including Teenage Drivers in Your Insurance Coverage
• Insurance Institute for Highway Safety (IIHS) has reported that teenagers get involved in 3 times more accidents for each mile of driving, compared to drivers who are more than 20 years in age. When you add your teenage child to your current insurance coverage, the insurance company would definitely increase the deductible and the cost of the coverage would go up.
• If the teenager gets involved in auto accident or receives several moving violations, the monthly rate would also increase proportionately. You would lose perks in auto policies such claim-free discounts or good driving discounts. If the damage to the vehicle exceeds the coverage amounts, you might have to bear the additional expenses from your pocket. Hence, it is important to enhance the coverage limits when you add a teenager to your coverage and this would result in higher deductibles.
You could also consider buying a separate coverage for your teenage child but the cost of two separate insurance policies would always be higher than a single coverage for the entire family.
When you plan car insurance for teens, you should consider all pros and cons before deciding whether to include the teen in your present auto insurance coverage or purchase a separate coverage for the teen.
Thank you Vinay! That article definitely helped many readers.
Nadav
nadavs
Should Teenagers Have Auto Insurance?
When teenagers obtain driving license, parents naturally worry about their children. There are valid reasons why parents should feel this way. Statistics reveal that most teenagers drive the vehicles in a reckless manner and they tend to exceed acceptable driving speed limits, without disregard for personal safety. There are several pros and cons in including the teenagers in your current insurance policy or a taking a new policy for them.
Pros in Including Teenage Drivers in Your Insurance Coverage
• It is very easy to extend your options of insurance coverage to your teenage child. All the limits, coverages, and deductibles would apply to the teen also. If you are providing your child with a new car, you could even customize the protection coverages of the teen, such as collision coverage, comprehensive coverage, etc. to ensure safety of the new car.
• If you present a new car to your child, you would qualify for the discount that most insurance companies offer for multi-car policies. Nearly all insurance companies offer significant discounts when you take insurance coverage for more than one vehicle under multi-car insurance programs.
• On most occasions, the insurance company might increase the amount of the deductible when you add your teenage child to the present coverage due to the perception that teenagers are not only inexperienced but are also of higher risk. The discount on adding a new car along with the teenager would result in offsetting the additional cost.
Cons in Including Teenage Drivers in Your Insurance Coverage
• Insurance Institute for Highway Safety (IIHS) has reported that teenagers get involved in 3 times more accidents for each mile of driving, compared to drivers who are more than 20 years in age. When you add your teenage child to your current insurance coverage, the insurance company would definitely increase the deductible and the cost of the coverage would go up.
• If the teenager gets involved in auto accident or receives several moving violations, the monthly rate would also increase proportionately. You would lose perks in auto policies such claim-free discounts or good driving discounts. If the damage to the vehicle exceeds the coverage amounts, you might have to bear the additional expenses from your pocket. Hence, it is important to enhance the coverage limits when you add a teenager to your coverage and this would result in higher deductibles.
You could also consider buying a separate coverage for your teenage child but the cost of two separate insurance policies would always be higher than a single coverage for the entire family.
When you plan car insurance for teens, you should consider all pros and cons before deciding whether to include the teen in your present auto insurance coverage or purchase a separate coverage for the teen.
Thank you Vinay! That article definitely helped many readers.
Nadav
nadavs
No comments:
Post a Comment