Insuring Your 16 Year Old
For many teenagers, turning 16 is a long-awaited and recognized rite of passage. Many new 16 year olds spend their birthdays at the DMV getting their driver’s licenses. To many teens, a driver’s license is a symbol of freedom and independence that sets them apart from younger friends and siblings. While teenagers may look forward to this big day, many parents would rather their teens stay 15 forever. A new driver can be a handful because she or he comes with a number of costs and stresses that young drivers may not even be aware of.
The Costs of a New Driver
There are many costs associated with a new driver. In addition to the fee paid to the DMV, many parents also pay out these substantial expenses:
- Car costs: Some parents decide to buy their teen a vehicle of his or her own, or may pay to have an old vehicle repaired to driving condition.
- Car insurance: Insurance for young drivers costs more, particularly for males, because they are more likely to be in an accident than older, more experienced drivers.
- Fuel costs: As gas prices rise, a new driver adds greater fuel costs to the family’s budget.
Saving Money on Insurance
These costs can all add up to put a major strain on your family’s expenses. Fortunately, there are ways to save money on insuring your 16 year old. Some clever saving methods include:
- Insure your teen on a safe, dependable vehicle. The less powerful the engine, the lower the insurance premiums will be. Vehicles with larger engines and lower safety ratings will be substantially more expensive to insure.
- Report good grades. If your 16 year old makes good grades in school, be sure to report these to your insurance company. Many companies offer a discount to teens who make good grades each semester.
- Check out the “occasional driver” option. Some insurance companies offer an option to insure an individual who drives less at a lower rate. The definition varies from company to company, but typically an occasional driver operates the car no more than 25% of the total driving time. In contrast, a principal driver operates the car 50% or more of the time. The insurance for an occasional driver is much lower than for a principal driver.
To learn more about money-saving tips for teens and affordable coverage options that are available to you, please contact a Chicago auto insurance agent of Insure on the Spot today at 773-202-5060.