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Car Insurance For Teens

Written by Todd Clay. Posted in Research Last Updated: 10/30/2008

Essential checklist when buying auto insurance for your teenager

A new chapter in your teen's life.

A new chapter in your teen's life.

Ahhh, teen drivers and their car insurance.

It wasn’t so long ago you were in the same seat, ready to show off your new wheels to friends.  But before getting too nostalgic and hand off the keys, you need to get some your teen insured.  Don’t get caught without a policy when they take to the streets.

Buying auto insurance for your teen is not much different from buying it for yourself.  Basics such as picking a reputable company and getting enough coverage to cover your situation still apply when choosing a company.  But there are some essentials you should consider before signing a policy.

Teen Drivers Are Dangerous?

I know, I know…your teenager is a very safe driver.  But I’m not talking about your teenager.  I’m talking about all the other dangerous, young, hormone-driven motorists on the road.

Fact is, according to the Insurance Institute for Highway Safety, 16-year-olds are nearly six times more likely to get into accidents than drivers aged 30-59.  To a car insurance company that translates into one thing: higher premiums.  Know that you will pay more for the teen driver in your household.  But that’s only part of the story.

Help Your Teen on the Road to Success

The scary part is that auto insurance rates can go up from there.  One at-fault accident and your perfect angel’s rates could jump 10%…or more!   That’s why it’s important to help your young driver get experience.

Take frequent trips with them at the wheel.  The more they drive with you, the more comfortable they will be at the wheel.  This will help them, but it will also help you when you’re mailing in your premium check.

On the flip side: if your teenager bucks the trend keeps a clean record (no accidents & no tickets), many companies offer additional discounts.  Make sure you ask about them when getting quotes.  It never hurts to ask.

Submit Grades for Better Car Insurance Rates

Auto insurance for teenagers is high enough.  Any discount will help lower the burden on your wallet.  That’s why it’s important to submit your teenager’s grades to the company.

Most companies give a good student discount for premiums.  Having your teen maintain a 3.0 GPA or better will help lessen the strain on your checkbook.  Maybe you could pass on some of the savings to your teen – the discount will be more than enough to pay for a movie every policy renewal.  It’s a friendly reminder for them to keep up their grades.

Higher Deductibles Can Save Money for Teen Drivers

If you’re getting full coverage (comprehensive and collision) for your teenager’s car insurance, then you know about deductibles: the higher your deductible, the lower your premium.  In other words, the more financial responsibility you assume for teenage driver, the less you will pay to the car insurance company.

That’s why you should consider upping the deductible on the comprehensive and collision portion of your teenager’s auto insurance.  Instead of a $100 deductibles, consider going to $250 or $500.  Sure, it’s more responsibility for your family – but it could pay for itself in a year.  Put the savings in the bank in case something happens.

Can I Just Add Them To My Policy?

Before collecting auto insurance quotes, ask your current insurer if you can add your teen to your policy.  Some states allow this, while others do not.  Either way, most agents will be able to advise accordingly.

A note of caution: if your teen has a driver’s license, they must be insured on some vehicle.  If your car insurance company doesn’t know about your teen driver, your company could drop your policy – whether or not anything happens.  And you thought it was expensive before, you were cancelled – it’s downright depressing afterward!  If possible, just add your teen driver to your policy when they’re licensed.  It’s the safest, and ultimately cheapest bet.

Before You Hand off the Keys

After you pick up car insurance for your teen driver, they’re almost ready to hit the road.  Help them with the basics behind the wheel – if they get a ticket, make sure they take defensive driving, and if you want to help their sense of responsibility, make them pay some of the premium with a part-time job.  All these things will help you feel more comfortable guiding your teen through their first years of driving.

Now, where are those keys?
Did I miss anything? If you have something to add for other parents, just a leave a comment to help them out.

DUI/DWI Car Insurance

Written by Todd Clay. Posted in Definitions, Research Last Updated: 03/23/2011

3 Things to Know About Your Auto Insurance When You’re Ticketed For Drunk Driving

Car Insurance after a DUI Can Be Tough

Car Insurance after a DUI Can Be Tough

Car Insurance cancelled after a DUI or DWI? It could never happen to you, right?

You never drive after 2 drinks.  You always call a cab instead of getting behind the wheel.  But for whatever reason, things were different this time.  You picked up the keys and drove yourself home.  Before you knew it, you saw the flashing lights.  Against all odds, you have a DUI.

Whatever they call it in your state (DUI, DWI, OWI, or OVI) it all amounts to a similar thing.  Problems.  If you’re convicted of drunk driving, estimates suggest you’ll pay over $10,000 for attorney’s fees, car insurance premium increases, court costs, and related items.  It’s a serious matter.  Wherever you are on the road to DUI recovery, these three steps will help you get back on track with your auto insurance.

Step 1: Get Legal Counsel

I am not an attorney and this is not legal advice.  It’s just suggestions to help with your car insurance in a DUI situation.  Before talking to the court about your ticket, get an attorney.  Now is not the time to be the Lone Ranger in front of a judge.  There’s just no substitute for a good lawyer in a DUI situation, especially as it relates to your auto insurance.

For one, experienced attorneys will give you perspective.  You’re not the first person they’ve coached through a DUI or DWI, nor will you be the last.  Second, they will help you with all the little steps like filing necessary documents, to helping you show remorse in front of the judge (that high school drama class will finally come in handy).  Third, a good lawyer should help you get a lesser sentence if you’re convicted.  That alone will be worth the fees they charge, especially since you’ll be able to keep your car insurance.

One last thing relates to your car insurance: If you don’t have a driver’s license, you don’t have insurance.  If an attorney can save your license, then it’s worth every penny you pay them.  Who knows?  They may even be able to get you out of a conviction.  If so, then you’ll get to keep your policy with the same rates.

Step 2: Handling Your Car Insurance Policy

If you’re convicted of a DUI or DWI and you get to keep your driver’s license, you’ll probably need an SR-22 filing.  That means your state must obtain proof of liability coverage from an car insurance company for you to maintain your license.

Not all companies provide SR-22 insurance.  If you have auto insurance with a preferred company, they’ll either cancel your policy or non-renew it once it comes up for renewal.  A DUI and DWI are a big pain in this regard.  If you’re cancelled by your auto insurance company, you have some shopping to do.

At this point, you’ll need quotes for non-standard car insurance.  Either get a quote here or call up some local insurers for some quotes.  Either way, don’t wait until your auto policy is cancelled from your DUI or DWI.  Getting auto insurance afterwards will be even more expensive, if they can even write the policy.

Don’t forget.  When you’re talking with these car insurance companies or filling out online forms, be honest.  Being up front about a DUI or DWI will save you time and frustration when talking with an agent.  If they can’t help you, they’ll let you know, and probably get you in touch with someone who can.  The more open you are about your DUI situation, the easier it will be to get auto insurance.

Step 3: Drive Safely

I’m not gonna lie to you – you will pay more for non-standard (not preferred) auto insurance.  Such is the cost of a DWI.  But rest assured, DUI and DWI pricing is not forever.  As bad as it may seem right now, a conviction usually falls off your driving record within 10 years (sometimes sooner).  But, that doesn’t mean you’ll be hosed by your auto insurance company that long.

Typically, preferred companies want to see continuous coverage for 3 years with no SR-22 filings, even after a DUI.  Once you get 24-36 months under your belt with a non-standard policy and the state drops the SR-22 requirement, give some of the standby car insurance companies a call.  They may be more than happy to quote you again.  If they write your policy, even with a DUI 3 years ago, chances are you’ll save 25-65% on your car insurance.

Lastly, I can’t stress this one enough: drive safely.  Whatever caused your DUI or DWI, don’t let it happen again.  As bad as this situation is, it will be worse with a second DUI conviction, where jail time is often mandated.  If necessary, get involved in an AA class, or another related program.

Whatever you do, don’t drink and drive again.  You know how much a DUI costs – you don’t want to pay a steeper price with another one.  By driving safely, society and your family will enjoy the benefits and you’ll get it all back from your car insurance savings.

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