Young drivers are expensive to insure. If your household is about to add a new driver, make sure driver_595143athat he or she understands that, besides endangering themselves and others, poor driving habits can result in higher insurance premiums, fines and even a suspended license.

Here are some methods to help minimize the cost of a new driver:

  • Have your child complete a driver training class. The class’ cost is easily offset by lower insurance premiums. You also gain a more competent young driver.
  • Ask your insurer if it gives discounts to students with good grades.
  • Make sure your new driver understands New Hampshire’s Hands-Free laws and the penalties. The incidence of accidents is increased by the use of devices while driving. This is not only potential for increased insurance rates, and expensive fines, but also a risk to lives.
  • Find a company that charges a rate according to the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.
  • Try to discourage or delay your child’s driving to school. Insurers charge a lower premium for less frequent driving.
  • Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver’s first accident or minor traffic violation.
  • Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.
  • If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
  • Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance the considerations of convenience, cost and safety.
  • If purchasing a car for your teen, consult with your agent about insurance costs of various makes and models beforehand. It is often a shock to find out after the fact that your purchase is significantly more expensive than a different choice might have been.

Requiring your teen to contribute to their insurance costs may influence them to drive more cautiously. Also, take the driver training requirements seriously. While it’s indeed a challenge to fit the necessary twenty hours of supervised driving into busy schedules, it’s imperative not to forego it as it is your only opportunity to influence your teen’s driving habits. Use this time to introduce new driving challenges and difficult situations they will one day encounter alone.

Don’t pursue lower premiums blindly. It’s important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy.

Give The Insurance Outlet a call to discuss strategies to keep your new driver affordable.