For most American teenagers there are very few things more important than getting a driver’s license and getting out on the open road. A driver’s license for a young adult represents independence. It’s the first real taste of freedom for many teens. When I first got my driver’s license I was elated, but it didn’t just mean my freedom. It was freedom for both me and my closest friends. To us, nothing seemed more vital. Today I’m in a different role. My oldest child will soon be of legal driving age and my concerns are not of malls and movies, but of safety and auto insurance.
DWT: Driving While Teen
I once heard it said that the elderly drive like they have all the time in the world while teenagers drive like their days are numbered. It’s for this reason that you’ll find your auto insurance rates skyrocketing as much as 50% to 100% when it comes time to add your teenager to your auto policy. There are some ways to discount the cost, but you and your child must commit to working for them. Probably the oldest way to get a discount is for your teen to make good grades in school. Generally a minimum of a B average is expected to qualify. Safety courses are another great way to get your rates discounted.
Tracking Teens
More recently, some companies have turned to technology to encourage good driving that results in discounted rates. One of these includes a video camera installed in the car that is monitored by a third party for driving mistakes. Another program uses GPS to monitor speed, distance and time and allows parents to set preset boundaries. A third program uses a black box setup similar to those used in aircraft. It seems a little bit ‘Big Brother’, but let’s face it, we’re parents. We want our children to be safe.
Teen Drivers and the Family Auto Policy
Many parents prefer to add their teen drivers to the family auto insurance policy rather than getting a new policy for the child. This is usually a good idea. In most states your child can stay on your insurance policy for as long as he lives in your home. Certain circumstances, such as attending a college, will even allow your child to remain on the family policy after leaving home. Generally the child would need to be enrolled in a college and actively taking classes. Check with your insurance agent for specific limitations on your current policy.