Brew City Insurance Agency

Wednesday, April 25, 2018

5 easy ways to keep insurance costs down for your teen driver

SO - Why are teens so expensive? 

(This picture says it all)

Statistics. Insurance companies calculate premiums based on the probability of an accident happening. The greater the probability, the greater the chance of a claim, and teens are by far the riskiest drivers in the world. And it is no surprise that car accidents are the number 1 cause of death for teens ages 16 to 19. They are three times more likely to be involved in a fatal crash than people ages 20 and older. Boys are riskier than girls for a number of reasons, including not recognizing hazardous situations, speeding, not using seat belts and driving while intoxicated. Although the use of phones while driving is beginning to even out the risks for both, but we'll talk more about this later. 


If you’re trying to keep insurance costs down here are a few tips.


Sign them up for a driving class (well you HAVE to...).

Wisconsin requires teen driver’s education for those under 18 to be licensed for good reason; students who take driver’s ed are better prepared for the road and are less likely to have an accident. However, this helps keep the rates in our state down for everyone.

Consider Delaying the license (I know this may be tough).

By delaying, your insurance rate decreases slightly. Hopefully your teen is slightly more mature when they hit the road. However, you need to balance this with gaining experience. This also affects your rates. So this may or may not help.

Companies prefer students with decent grades.
 

Often times insurance carriers offer a pretty good discount for both high school and college students earning a GPA of 3.0 and above. Again, statistically speaking, good students tend to be less risky. You could save as much as 15-20 percent each year.

This is the BIG one - Shop around for insurance!


Some insurance companies just don't want young drivers. Seems wrong, but they get to choose who their target customers are. Shopping around is the most effective tool for saving money. Ask about good student discounts, distant student discounts (for when a teen goes away to college without a car), low mileage discounts, insuring just one car for a teen (some policies allow this), higher deductibles (usually a big break) and bundling with homeowners insurance.

This ALSO is a big one - Either share a vehicle or buy 'em a junker.

Honestly - Do you want to give your teen a car like the one above?
For most families, sharing a car is a no-brainer because buying a third car cost money. The upside of sharing your car is that you can control how often the car is shared and insight into their activities while they use it. 
Buying a "junker" (don't actually buy junk please) for cash* has an advantages. You may be decide to buy liability only coverage, a much cheaper coverage. This ONLY covers damage to others property in an "at-fault" accident and nothing for your junker car. It is cheaper because insurance companies would rather not pay for both cars in an accident should it be your teens fault. Remember - performance cars for teens cost a FORTUNE to insure.

*Note - All cars with loans are required to have "full coverage" by the lien holder. 

Bottom line

Teen drivers are more expensive to insure. It will be necessary to do your homework to save money. Hopefully some of these tips will help.

One very important note - if you are like some folks that decide to send you kid out into the world to buy insurance on their own - I will tell your that 1) they very likely will NOT be able to afford it and 2) will most likely not keep up on payments once they start due to cost. If you add a driver to your current policy you could possibly give that driver your multi-car discount, or home discount, good credit discount, or many other discounts you already may be getting. and 3) They probably have no idea what "insurance" actually is and does.

You've been responsible for them this long - you might want to help them through one of the most difficult transition periods of their lives to this point. 


Is there a teen driver in your house?

Brew City Insurance can help

Come in to Brew City Insurance to see who has the lowest teen driver rates.
2937 S Chicago Ave. in South Milwaukee between Pick N Save and Walgreens.
Stop in today and see what we can do for you!
Or call 414-762-6600 and we can quote you right over the phone.
We have several companies to choose from.
We can also cover you if you do decide to open a business.
Visit our web page at - http://www.brewcityinsurance.com