Insuring Young Drivers

It can be the dread of every parent- that day when their children are on the roads, driving for the first time. Many parents have a tradition of making children pay for their own vehicles, including insurance, but with the economy the way it is, many kids simply can’t pay for it all. In order to alleviate some of the financial stress caused by growing bills to young drivers, it is possible to assist with the overall costs while still teaching them the valuable lessons associated with independence. One such tried and true method is incorporating a system of bundling the young driver’s insurance with that of the adult driver’s in the family.

Bundling to Save on Young Driver’s

The concept isn’t to pay for the insurance outright as a parent, but rather to incorporate the young driver’s insurance with that of the extraneous household insurance policies. In doing so, it is a win win situation for everyone involved. For the insurance company, they are willing to reduce rates on a higher risk driver, namely the young adult, as they are part and parcel in a larger insurance plan. The more policies a household has with an insurance company, the more profit the company sees from the premiums paid. It is therefore in their best interest to cover as much as possible. This balances out the risk factors between high risk policies and lower risk ones, such as household and adult vehicle insurance.

For the children, this means a policy cost is within their reach as a monthly expense, alleviating the higher costs of individual policies they normally would have access to. With an incorporated and bundled vehicle insurance policy, young drivers can begin to set a pattern for responsible driving without having to pay exorbitant prices. With confidence, and a solid working relationship with their parents’ insurance agent, they can begin to see reduced insurance premiums through good behavior much sooner.

For parents, the bundling helps to reduce further their existing insurance policies. This is accomplished through adding another policy into the fold. With an expanded bundle, households can renegotiate other policies and see further discounts, while still attaining the required insurance coverage for their young drivers.

By having oversight on their children’s policies, adults can also monitor their payment schedules and help teach them the strengths of timely policy payments, and how it benefits them in the long run. Should a young driver come across difficulty making a scheduled payment, their parents can step in and keep the payments going smoothly until the rough patch is cleared. Everyone sees benefits in a bundled situation, and young drivers don’t need to work 3 part time jobs just to pay for minimal coverage.

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