​Car Insurance for New Drivers

Ok, car insurance for new drivers – this can be a touchy subject – especially if you are letting the teen make the decision. It is your choice and there are many auto insurance companies to choose from.

In Massachusetts, teens driving on their learner’s permits with a licensed adult supervising them do not need to have their own auto insurance policies. Once they start driving on their own, however, teens need auto insurance, so you will want to explore options to keep these costs reasonable.

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

The best way to go with a new driver – a teen driver – is to get her, or him (or have them save for) a “beater” car – like a 2000 Honda Accord or a 1995 Honda Accord – you know – a beater.

Then have them get just Liability insurance – including Part 5 – just to get it on the road. We always recommend higher limits of Liability like 50/100 or 100/300 – but with times being tight – not everyone can afford this when they start out.
So that is the angle I would take. Car insurance for a new driver or teen driver is very expensive in cities like Brockton – a bit less in the surrounding towns – you are looking at a substantial premium either way. Other ways to save on their auto insurance may include things such as;

• Raise deductibles to lower premiums. Ask your auto insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
• Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
• Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect auto insurance premiums, so consider sharing vehicles.
• Just say “no” to sports cars and SUVs. The kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.
• Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the vehicle.
• Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

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​Have your teen take the approved Drivers Education course while they have their permit – this course can be expensive – costs can range up to about $700 but you get that money back in the form of a discount over the first three years they are driving. After your teen has been driving for 3 years – their price will drop. Massachusetts changes pricing after 3 years of driving and after 6 years of driving.

Should a teen get their own policy? Or be put on their parent’s policy? I have always felt it is best to keep the policies separate. If the kid is on your policy and they have an accident causing bodily injury to others – you don’t want the insurance company to be able to go after you, your home and your insurance policy.

This is why it is best to have the kid have their own insurance – then in an accident situation – the insurance company will only be dealing with the teen’s policy and not the parents.

Many parents realize that it is less expensive to have their kids on their policy. If you choose this route I always recommend increasing liability coverages to $250,000/$500,000 and adding an additional $2 million umbrella. This will help keep you safe in case something does happen.

Ask your agent about all the discounts available including – ask if there is a “good student” discount available for your teen. Any good agent will automatically give you every discount available – but be sure to ask anyway. Be sure to discuss the rules of the road with your teen. Absolutely NO SPEEDING! This is what causes all the other problems.

In addition – no texting while driving – not only is it very dangerous but in Massachusetts it is also against the law.
Bottom line? You call the shots. Tell your teen the best way to go.

I see it all the time – teens wanting a real nice car right away – getting Full Coverage – insurance is can be upwards of $10,000 for the year – then they can’t afford both the car and the insurance – they effect their credit rating and on it goes.
Tell your teen the best way – and in the long run they will be happy you did! When looking for car insurance for new drivers call Craig Pina at C. Pina Insurance today!
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Good luck!

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