A Tip That Will Save You MONEY on Young Drivers Insurance

When you insure your kids, there are some little known tricks that many insurance companies use to squeeze every dime out of your policy. They know what happens when all of those hormones are behind the wheel of your car. To the insurance companies, it’s just business. Here’s a way to put the brakes on those wildly escalating premiums, when you purchase young drivers insurance.

Auto insurance companies know that they usually lose money on drivers under 25. The incidents of auto accidents for sixteen year old drivers, covering a million miles of driving studies, is almost triple the rate for 19 year olds, and close to six times the accident rate for those drivers between twenty and twenty four. In order to keep from passing those costs for young drivers insurance on to drivers over 25, they try to find ways to keep their losses on youthful drivers contained to premiums in that age group.

Make sure your car insurance company is not assigning your child to the most expensive car you have. This is a very common practice. Let’s say you have a vehicle worth $35,000 and one worth $17,000. Unless you are careful when describing which car your youngster drives, you might not catch this in your policy. If you aren’t on top of it, you could find your child assigned to the $35,000 car or SUV. You’ve got to straighten this out immediately. It could jack your premiums up 50% a year.

If your current insurance carrier refuses to re-assign your youth drivers to the less expensive car, switch insurance companies. There are still many cheap car insurance companies that will work with you, to try and get your young drivers insurance premiums down. You may want to prepare a letter to the company, presenting the steps you are taking to keep your children aware of the consequences of goofing off with your car.

Confiscating the car keys for an extended period of time, for any ticket, is a good one. Insisting on high grades as a reward for the car keys is another. Mandatory safe driving courses, in addition to their drivers ed, is usually a helpful reminder to them, of the serious responsibility they have.

You may want to look at buying an older car, just for the kids. Compare the cost of your increased premiums on your fully insured family cars to the young drivers insurance prices on an older, cheap car. Then, in this exercise, assign your children to the cheap one. Put a “liability only” auto policy on that car, and tell your kids that if they wreck it..they’re walking until they can buy their own insurance. You may find that you save enough on premiums to justify the clunker, which has the added benefit of keeping down the wear and tear on your family cars.

No matter how you cut it, auto insurance is expensive for those under 25. I hope this tip has helped you come up with a strategy that will save you money on your young drivers insurance premiums.

My name is Steve Benedict and I help people save money on auto insurance. I want you to benefit from the mistakes I’ve watched others make, and learn insider secrets that it took years to perfect. Whether you’re “just curious or really serious”, visit my website right now, while you’re thinking about it: http://www.carinsurance-journal.com/

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