Three things your Auto Insurance Companies do not want you to know about teen drivers which can save you thousands of dollars!
Insurance companies go out of their way to convince you that it will be very expensive to insure your teen driver. Many insurance companies shamelessly target parents of teenaged drivers, relying on scare tactics or sappy themes. Many wish to create the illusion that the auto insurance company can actually keep your child safe – of course this is ridiculous.
When you call your insurance provider to add your new driver, be very careful what you say. An initial quote of $4000 to add your 16 year old son to your insurance policy could be drastically reduced (to $800) by knowing the important things that insurance companies do not want you to know.
1. Most Insurance companies offer a “good student discount” so be sure to ask. They will require you to fax your teenager’s report card and meet some variation of the following criteria:
B average prior semester, 3.0 grade point average (GPA), dean’s list or honor roll, top 20% SAT or ACT score, top 20% PSAT score, home-schooled students may be eligible based on standardized exam results.
2. Insuring a car and omitting collision coverage can be far less expensive, especially if your teenager is the primary driver on the car. Collision insurance covers an auto’s book value less the deductible; for an older model car, this can be less than the extra cost of insuring the car’s value. Of course, you must have liability insurance, but when your teenager drives a car that has no collision coverage, you can save thousands of dollars on your insurance bill.
3. A college student should be considered an “occasional driver” if he/she attends college 100 miles or more away from home. Be sure to call your insurance company when sending a child off to school. Your overall bill should go way down. But, the only way to assure that the child is not on your auto insurance and not increasing your premium is to switch companies and tell the new company that you have a college student who does not have a car and is more than 100 miles away. The insurance company may ask for the child’s driver license number but you are not required to provide the information.