Your kid is now sixteen years old. He or she is more than likely begging you to get their permit, and eventually their license. As a parent, I can relate to you if you are experiencing some sadness in realizing that your baby is now old enough to take to the roads. There's also some pretty cool possibilities in that you don't have to haul them to soccer practice or music lessons. Not only that, you potentially have an "errand runner" that is more than happy to drive to the store for you! It's important to make sure that insurance gets thrown into the mix. As everyone knows, it is illegal for anyone to drive without a license (or permit) and no insurance. There are a couple of very important things for parents and guardians to know about insurance BEFORE their new driver gets behind the wheel. First of all, MAKE SURE THEY ARE COVERED BY YOUR POLICY! More and more, insurance companies are requiring that even permitted drivers be listed on the insurance policy. If the young driver is not added to the policy, parents could find themselves without coverage if something bad happens on the ride with the youthful driver behind the wheel. A simple call to your insurance agent will do the trick in finding out what you need to do to make sure that your new driver hits the road legally. Also, it is never a bad idea to have your new driver meet with the insurance agent before they hit the road. The insurance agent has a wealth of information that will help your new driver be safe. For instance, the young driver, even though they may be licensed, does NOT have the authority to transfer insurance to one of their friends who may be bugging them to let them drive the car. It is very easy to imagine one of their friends laying on the pressure to let them drive the family car. In that instance, you can let the insurance agent "be the bad guy." Your child can tell their friends, "I'm sure my parents would let you, and I would certainly let you, but that jerk of an insurance agent told me that I can't!" I am often asked about whether or not it is better to put the youthful driver on their own policy rather than the family policy. The thinking behind this is, "if we have a separate policy, then if they have an accident, it won't affect us." Unfortunately, parents are still responsible for their kids until they turn eighteen. Even then, if the kid is still in the home, some liability may still be assumed if the parents own the vehicle. Since a minor can't own a vehicle, it all comes back to the parents. If the parents are wishing to teach their new driver responsibility, and if they have a job and are paying for the insurance, it is possible to set up a billing plan for one specific vehicle and achieve that goal, while still giving your driver the benefits of being on the family insurance program (multi-car discounts, multi-line discounts, Occupational discounts, etc.). Finally, there are usually multiple discounts available to young people who maintain a 3.0 grade point average. Many companies also offer additional discounts to young people who take a class online or in the agent's office. Call your agent to find out what discounts might be available to them. Hopefully this post was useful in helping you understand how to get your newly minted driver on the road legally and safely! If you have questions or comments, enter them below. Thanks for reading!
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AuthorDave Owens, Owner/Agent. I have proudly served in the Insurance Industry for over 20 years. Archives
October 2019
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