Page 4 - AAA Now! – AAA Shelby County – May/June 2021

INSURANCE SERVICES
Insuring Your Teen Driver
Your children are growing up faster than you
can believe, and yup, they’re now on the road without parents. Whether it’s their own cars getting to and from school, or their friends’ cars headed
to a party, they’ve officially become independent. Make sure you’re prepared. Before you insure your teenaged driver, let’s take a look at the hard facts.
According to the Center for Disease Control,
motor vehicle crashes were the No. 1 cause of death amongst teen drivers aged 15-19 in 2017. Simply translated, six teens aged 16-19 died every day and hundreds of others sustained injuries because of motor vehicle crashes. So, who is considered a higher risk? The answer is male teens, drivers licensed less than a year and teens driving with their peers in the same car. Parents, it is more important than ever to review your current auto insurance when adding a new teen driver to your policy.
Here are some tips for parents of teenagers to help save money on auto insurance:
• Cars vs. Drivers: If there are more cars than drivers on a current policy, the new teen driver will automatically be assigned to one of the vehicles as
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a principal driver, often leading to higher insurance rates. However, if there are more drivers than cars, a new teen driver would be added as an occasional driver, as all the vehicles would have already been assigned to the more experienced members of the household. Having your teen insured on your policy for at least a year gives that driver insurance “credit” so that when it comes time for them to be on their own policies, having had the prior insurance will stand them in good stead.
Buy the Right Vehicle: Cars that are more expensive to repair or that have lower safety ratings cost more to insure. Teen drivers should steer clear of sports cars and SUVs. Instead, choose a vehicle with lower liability and insurance costs. Visit the Insurance Institute for Highway Safety Website at iihs.org to compare vehicle safety ratings.
Choose the Correct Deductible: When looking at the break down in coverage costs on an auto policy, comprehensive and collision coverages are most likely to be the most expensive part of the policy. For that reason, parents should consider
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an older model vehicle for their teen that does not require a loan, and therefore comprehensive or collision coverage is not an absolute necessity. For those wishing to purchase a new vehicle, consider a higher deductible on collision and comprehensive.
Practice Safe Driving: Simple steps like always wearing your seat belt and avoiding distractions are excellent ways to remain safe and focused
on the road. Keeping a good driving record is essential. Plus, taking a defensive driving course might also help reduce the rate of your premium.
Keep Up with Good Grades: High school and college students who maintain at least a B or 3.0 average are viewed as being more responsible and might qualify for a “good student” discount. Be sure to ask if your auto insurance company offers one.
For more information and advice on auto insurance for teen drivers, visit AAA.com/ Insurance and contact a AAA Shelby County Insurance Agent today.
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MAY/JUNE 2021