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January 24, 2013

Car Insurance for the Newly Licensed Teen Driver

fast carWhen it comes to Raleigh auto insurance for the newly licensed teen driver, you want your kid protected without overpaying. Your insurance company is going to request that you insure teens as soon as they receive their learning permit. Don’t worry, while your kid is learning the insurance rate will be much lower. With insurance rates for teens meaning huge increases on insurance costs, it’s recommended to teach safety precautions and shop around for valuable discounts. Speak to your insurance agent to find out what’s available for your family.

Safety First

The Insurance Information Institute has reported that motor vehicle accidents are the leading cause of death, among those in the 15 to 20 year age range. This frightening statistic concerns parents, making them reluctant to hand over the keys. Still, parents know they can’t keep their teens from driving forever. Instead, they can only prepare their teens by teaching them safe driving habits. These safety precautions may even help parents save on their car insurance costs.

Sharing the family car is a great way to protect kids and save money. According to research conducted by Children’s Hospital, car sharing reduces accidents by 53%. Plus, it reduces your rate by only requiring you add an additional driver to your policy and not an entirely new vehicle.

Communication is the key aspect to keeping teens safe. You’ll want to be certain your child is being open about where they’re going and who they’ll be driving. At least for a short while, it’s recommended that parents don’t allow teens to have additional passengers in the car. Also, keep them on the same routes, allowing them only to drive to places they’re comfortable, like work and school. Use this time to monitor your child’s ability to follow speed limits and wear their seatbelt. Make sure your child understands this is only to determine their level of responsibility and eventually open themselves up to more freedoms.

Safety and insurance discounts go hand-in-hand. When your child gets involved in Driver’s Education or other car safety lessons, they’ll achieve optimal insurance savings. Many insurance companies allow up to 15% in additional savings, but when the teen has attended some kind of approved driving education program. Plus, you’ll rest soundly knowing your child learned safe driving habits from trained professionals.

Safe Car = Bigger Savings

If you’re planning on purchasing your child a new or used vehicle, Auto Week has some great suggestions. They’ve listed the top five least expensive cars to insure for teen drivers. Why are these cars cheaper to insure? They have additional safety features, making them a great option for your peace of mind and your checkbook.

At the top of the list is the Audi A3, which costs approximately $392 a year to insure for teen drivers. Also on this list is the Honda Accord 4-door, the Mercury Sable, the Ford Taurus and the Subaru Forester. Most of these cars include an electronic stability control function, which is how they achieved such an optimal insurance rate.

Reader’s Digest suggests the safest cars have this electronic stability control function, as well as advanced seatbelt features, like adjustable upper belts and energy management features. Other insurance and life saving features include head injury protection, antilock brakes and all-wheel drive.

Other Ways to Save

Smart teens get insurance discounts. It goes to show that great attendance and grades are recognized as responsible traits by all, including your insurance company. If your kid has a high-grade point average and good attendance, they can net themselves a discount. Use this discount as an incentive in the years before your kid gets a learner’s permit. Let them know if they can keep their grades and attendance up, you’ll be able to insure them sooner.

The type of insurance you choose for your child is going to determine how much you’re paying. Consider PLPD coverage. This coverage is the least amount of coverage you can have on a teen’s vehicle. It covers both liability and property damage. Typically it costs a lot less than comprehensive and collision damage, both of which you’ll want to consider.

Finally, if your kid is away at college, you may be paying too much. The Resident Student discount applies to students who aren’t living at home year-round and spend most of their time away at college. The savings here are immense, so you don’t want to miss out on this discount when your child leaves for college.

To determine all the insurance discounts available to you, call ACF Insurance Services Inc today at 919-878-7786.

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