Teenage
and new drivers
Some car insurance companies
will charge you for your teenage driver when they
turn sixteen. Some wont. Call your carrier ahead of
time to find out what their policy is.
The most costly coverage on
your auto insurance policy is the collision coverage.
Collision coverage covers damage to your vehicle when
it is involved in an at-fault accident. I.e. you hit
someone or something. New drivers, no matter what
age, are rated higher due to their lack of driving
experience.
To save on the cost of the
collision coverage on a new driver, consider purchasing
a used vehicle that cost between one thousand five
hundred and three thousand five hundred dollars. Make
sure that it is mechanically sound for your driving
needs. If you want to cover this vehicle for theft
and vandalism, you can purchase comprehensive coverage.
Instead of purchasing collision coverage on this vehicle,
purchase uninsured motorist property damage coverage.
Uninsured motorist property
damage coverage protects your vehicle for up to a
limited amount if an uninsured motorist hits it and
you can identify the driver and the vehicle. That
way if anyone hits you, even if they have no insurance,
your vehicle will be repaired or you will receive
payment from your insurance company for the fair market
value of the vehicle. Some insurance companies include
a deductible with this coverage.
Your savings could be anywhere
from five hundred to one thousand dollars per year
for your first three years of driving. How much does
that add up to after three years?
When my daughter turned sixteen
this year, I was faced with this dilemma. I own a 2002
Honda Accord and a 2003 Mitsubishi Lancer. My auto insurance
carrier wanted to increase my premium by two thousand
dollars every six months to add her onto the policy.
I bought her a 1970 Plymouth,
in good mechanical condition, and found a different
top company that charged me $642.00 every six months
with her on the policy. This policy came with permissive
driving as a standard feature.
I was then able to add her
onto my current policy as a not rated driver without
any additional cost. If she causes an accident while
driving my Honda or Mitsubishi, the policy on the
Plymouth would come first with its' coverage's. Then
my current policy would come second, if necessary.
My current carrier wanted $1,200.00
every six months with the 1970 Plymouth and my daughter
on the policy. So I ended up saving over $1,100.00
a year on my car insurance.
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