We hear about car insurance frequently. From ads on the radio, TV commercials on NFL Game day, and even from our neighbor who may brag about his cheaper rate. While the base of auto insurance attempts to be simple, there are numerous moving parts. We constantly hear, “only pay for what you need,” “pay only the miles you drive,” “customize your car insurance.” These are all appealing, and why not!? No one wants to pay more than they have to right?! But remember those moving parts? Sometimes paying a little bit more over the simple policy is unavoidable.
The hot issue today is youthful drivers. Youthful drivers guarantee an increase in your auto premium and this increase can range anywhere from an additional $400-$2000 per year depending on your youthful’ s driving history. If you’re on the higher end of that spectrum, it can be quite a gut punch to your wallet! In order to avoid the increase, many people attempt to hide their kids, and I’m here to tell you, DON’T DO IT. Seriously, just don’t. There are a few reasons why:
- IF your “hidden” child gets in a car accident, some carriers may deny your claim. Not only will you now have an accident on your policy (which will generate a rate increase), but the increase of adding the driver once the insurance company finds out, and with a claim denial, you could be stuck with ALL of the cost to repair the vehicle.
- If your “hidden” child doesn’t get their own insurance until they move out of the house at 21, they have zero insurance history. They were not listed on a previous policy and could face a surcharge for being previously uninsured when they attempt to purchase their own policy
- If your “hidden” child is away at college and borrow a friend’s vehicle, what policy do they have for coverage?
Now, in no way, shape or form do I mean to sound doomsday, fire and brimstone. I just think it’s so important to be honest about some potential pitfalls to not listing children who have received their driver’s license. NOW, are you ready for some good news?! Can I get a woot woot?!?! There are numerous discounts available to help absorb the cost of adding your youthful! (insert fist pump and happy dance)
- Good student discount. Get good grades? You qualify! Just submit a recent report card or transcript with the school’s letterhead and principal/dean signature.
- Teen GPS Monitoring Discount. Some insurance carriers, Synergy’s Insurance Partners, will offer a discount for downloading an app that monitors your youthful driver’s whereabouts. You don’t report to the insurance carrier, but you do have to provide a receipt showing you bought the software/downloaded the app
- Defensive driving course. Course provided by the insurance company and upon completion, discount is added.
- Plug in device/90 days app track. Various insurance carriers offer a plug in device or app tracker that monitors driving tendencies for 30-90 days and gives you a score, with potential to earn up to 30% on the policy! Some give you 5% just for signing up!
Phew, everyone breathe! Your agent, Synergy Team, will disclose to you the discounts you can get and will review your policy to ensure everything is as smooth as possible. Smooooth operator.