So we all remember what it is like when we were a teen right? That feeling of everything is being discovered by you for the first time. That excitement when we figure out we are never going to actually use Algebra in “real” life. And of course our first car. Some times we even named our cars. One thing we may not remember so well is the dread that our parents had about our first car. They may have been excited about us having an ability to cart ourselves around town but then the bill came for their insurance. DUN DUN DUNnnn!
Now you are the one getting the bill and for you I am sure it is …[Axe smashes through door]; Heeeeere’s Johnny! Teen drivers on your car insurance policy doesn’t have to be that way. Especially if you know the secret.
What queer little secret can save on car insurance for a teenager?
Just like when you found out post teen years that your parents may have known more about what they were talking about than you gave them credit for you may also be surprised that not all insurance companies are alike. Most of them say that they will insure you no matter what happens in life but in practice this gets proved to be wrong.
It’s not their fault.
Insurance companies try to make a policy that fits for everyone but at the end of the day it is about numbers (Damn, this feels like someone might be using Algebra). If they odn’t understand a risk to their bottom line then they have to charge more for it. Later they may find out that they charged too much. Sometimes this leads to an insurance company over correcting and charging too little (feels good while it lasts). Eventually a company settles on what they want to be their core type of business and then they amount they charge is “Just right”. Right in the sense that the legitimate claims can be paid out both today and in to the future.
How do you know if your insurance company is like Goldie?
The short answer is that, for some, you can’t. This is because the only real way to find out if your company is comfortable with a teen driver is to find out if what they are charging for adding a teen driver is too low, too high, or just the right amount. If your are with an insurance company directly and not an independent insurance agent then all you have to see is that one company’s rate take it or leave it. For some this means that they Leave It. For others this means that although they want to leave they are not excited about losing their relationship to the company representative. Of course for our clients, this usually means that they let us know that their teen is a driver and we go to work on their behalf finding the best solution. If that means that we have to offer them a different insurance company then they can make the switch and still have us as their ever faithful agency 😉
Should you try ostracizing your teen driver?
Believe it or not YES! I mean not to a dessert island where they can’t associate with members of the opposite sex until they are 18 (trust me you can not do this…not that I checked). What I mean is that sometimes buying a separate policy for your teen driver may be a better option. Not all insurance companies allow for more than one policy in the household so you have to be very careful that this is done with full disclosure to both insurance companies. Caution aside (since working with us would automatically take this in to consideration), in order to find out if this separate car insurance strategy will work for you get quotes together on the same policy and then separate from several different insurance companies. It may turn out that, although shocking, the increase you get from adding a teen driver to your policy may be just right. As always though your work to find solutions should be something you pass off to an independent insurance agent. Let them do the work so you can help your teen not hit the curb as they are parking costing you $179…again. Maybe that last part is too specific 😉