Auto Insurance for Younger Drivers
Younger drivers looking for auto insurance in Grand Prairie, Arlington, Mansfield, Cedar Hill or Irving will continue to have important financial decisions to make. As an addition to our previous blog, I feel the need to discuss further options for the teenage driver. When paced on the parent’s policy, the additional driver and vehicle will receive a multi-car discount, prior insurance discount, perhaps a homeowner discount, marriage discount many others that can be already applied to the policy. Discounts can be a very misleading term though because discount does not mean price or premium. If I offer a 20% discount on a $1000 premium, it sounds like a good deal however, if another company does not offer a discount but their premium is $750, you may be fooled by the discount terminology and pay the $50 extra. Again, with a captive agent(one agent, one company), you will be fooled into thinking you are getting great discounts from that company when the company down the street has no discount but their premium is already lower than your captive agent. The good news is that your teen’s premium will decrease over time as it should when he becomes a better, more experienced driver.
Now, if the teenage driver or parents choose to purchase a separate policy, they will not be gifted very many discounts, most importantly the prior insurance discount, which can be as much as 20-30 percent. This discount requires 6 months of prior insurance with no lapses in coverage. The good thing is thought that the young driver will not be rates on the parent’s $50,000 vehicle on their parent’s policy. These are the things that need to be addressed when deciding insurance coverage. All situations are a little bit different. Having an independent agent to help you throughout the process can take loads of stress off and save you bundles of money. If you should feel the need to discuss these scenario’s further, do not hesitate to contact and independent agent.