As we begin a new school year and check items off of our never-ending to-do lists, there is another task that is worth considering if you have a new driver in your household: learning more about auto insurance. If you are a parent or guardian who has been through this before, you understand the expenses that come along with having a new driver. From the cost of an additional vehicle, to the recurring costs of maintenance, gas, and insurance, there is no shortage of opportunities to find ways to save while keeping your teen safe on the road.
Because we work with many parents and guardians of new drivers, we have compiled a few ways to help you keep costs down during this exciting, but often expensive season:
- If you are purchasing a car for your new driver, be sure to choose the right vehicle. Ensuring your teen’s safety is paramount, so make sure you are considering industry safety ratings before making a purchase. The National Highway Traffic Safety Administration’s New Car Assessment Program (NCAP) is a great resource for drivers of all ages. There are also a number of factors to consider that could impact your insurance premiums – such as the vehicle’s weight, horsepower, and overall value. If you are not sure where to start, check out this year’s teen vehicle list from the Insurance Institute for Highway Safety (IIHS) and Consumer Reports (CR).
- Reward good driving behavior. If your new driver is able to avoid tickets and fender benders and make good grades, you will likely see that reflected in your premiums. Consider passing along those cost savings to your new driver to encourage them to keep up the good work. While there are many ways to do this, some parents and guardians choose to formalize a safe driving agreement with a parent/teen driver contract. If you are interested, we have a template that we are happy to share; simply fill out the form on our Teen Driver page to learn more.
- Take advantage of telematics. Most carriers offer a telematics program to track driving behaviors, giving them a better understanding of the type of driver they are insuring. With many of these programs, parents and guardians have access to the same data as the insurance company, allowing you to stay informed of your new driver’s habits, such as rate of braking, average speed, and the time of day a car is driven. If the results are favorable, the insurance company may apply a discount to your premium.
While we know this can be a stressful time, it is also an exciting milestone for your family! Our team of experienced insurance advisors at South Carolina Federal Insurance Solutions is happy to walk you through what you can expect to ensure the transition is as seamless as possible.
