You may have tried to deny it until now – but let’s face it, the kids are growing up. Just yesterday you were changing their diapers, and now they are on their way to driving your car.
Getting a driver’s license is a huge step towards adulthood – and as a parent, you want your child to enjoy this new-found freedom in the safest way possible. Arranging appropriate auto insurance is an important part of this process. Here a few things to keep in mind when your child starts reaching for the keys.
Who Gets A Policy:
In Auto Insurance, the policy follows the ownership of the vehicle. If your child will be driving an existing family car when they get their license, they are to be added as a driver on your policy. Your auto insurer does require that they be aware of every licensed driver in the home, so regardless of how often you plan to let your child drive, you must notify your broker of the new driver.
If your child will be the owner of their own car, then a new insurance policy will need to be created in their name.
There are advantages to both options. Typically, it is less costly to add a new driver to an existing auto policy. That said, if your child has their own policy, then, if they are involved in an accident, their claim will have no impact on your own auto policy and insurance history.
Tips for Young Drivers:
Insurance costs have historically been higher for young drivers. And, while the statistical likelihood of these drivers being involved in a claim is much higher in their early years of driving, there are several ways to help mitigate the premiums for these drivers.
Enrolling your child in an accredited driver education course helps equip them with the skills they need and reinforces safe driving habits. Insurers recognize this by offering a driver’s training discount.
Maintaining a clean driving record is crucial in minimizing premiums related to young drivers. Remind your child to obey the rules of the road and avoid any distractions. Texting and driving, in addition to being extremely dangerous, can result in a ticket just the same as speeding or driving through a stop sign.
Some young drivers have enjoyed the benefits of telematics solutions on their policies. There are several options in the insurance marketplace, offering policies which use apps or devices attached to the car to track certain factors in the operation of the vehicle, such as rapid accelerations or hard braking. These optional programs offer a means of applying additional usage-based discounting that reward safer driving behaviours with reduced premiums. They have the added benefit of providing the driver with active feedback throughout the measurement period, meaning drivers can see how they are driving and adapt accordingly to try to improve their discount!
This is a very exciting time for your child, but can be an overwhelming process for parents. It is most important to remember to instill in your child the best driving practices and safe driving education. More than helping keep insurance costs down, it should (fingers crossed) give you some peace of mind while they are on the road!
