Hi. I’m Lindsay Sarff and I’m here today to talk a little bit about a both exciting and terrifying time in a parent’s life. Congratulations. We know your child getting their license is an exciting milestone, but along with that comes the anxiety of having them behind the wheel. We would welcome the opportunity to meet with them and stress the importance of driving safely and the increased insurance costs if they don’t. Yes, there is a significant increase in your premium when you add an inexperienced driver, because nearly 50% of new drivers have either a ticket or an accident in those first three years of driving. However, the good news is that each year after getting their license and maintaining a safe driving record, you will see a small premium decrease until that increased rating charge falls off completely after the third year.
We can also share a few ideas to help you manage these costs. For example, it is typically not beneficial to title the car in the child’s name, because this requires a separate, higher cost policy. Also, generally speaking, the least expensive way to insure them is to list them as the driver on a liability only vehicle, one that doesn’t require full coverage. If you don’t have that type of vehicle, consider higher deductibles on the car they will be driving. As far as your premium increase, depending on your individual policy, the rate may be as little as an additional $85 per month to upwards of $200 per month. Since each policy has different rating factors, just contact us and we can show you how it will affect your specific premium. We also strongly recommend, if you don’t already have them, adding higher liability limits or an umbrella policy to your auto coverage. The reality is your exposure to a lawsuit has just increased significantly. These tips should provide you with a good idea of what to plan for with your new driver. And as always, please contact us with any additional questions you may have.
Call Warren Insurance Group – A Mike Warren Agency in Fayetteville NC at (910) 323-2588