Parents may not remember much of it but they were a beginner driver once as well. Now their children will go through the same process. Insuring a teenager is not a cheap affair whichever way you look at. Still it is possible to reduce the burden by carefully arranging coverage. Depending on circumstances surrounding the living arrangements, cars to be driven and costs, there will be several options.
First and simplest option would be to add the young person onto the policy of parents. Especially when the youngster will be sharing the family car, this will probably be the way to go. Although parents are the main drivers, adding a teenager to a policy will still increase premium considerably. In some cases it can double or triple it.
When the teen is getting a car the choices and complications increases. If the automobile is not worth much money, then the basic liabilities cover can just be sufficient. After a year of clean driving it will be much cheaper to add onto the policy. Generally, the hardest period as far as the costs and the driving experience concerned is the first year.
If he/she is to get a brand new car, the costs can be substantially higher. Unless you are a wealthy person, last thing you want is to buy a sports car for a teenager. Not many insurers will want to know about a teenage applicant with a sports car or they will demand a king’s ransom. With a safer vehicle and good grades at school, it may yet be possible to find an agreeable quote. This is as far as a policy for young people concerned. You should never confuse the rates for mature and young drivers. There will always be a serious gap in charges.
At this point, the parents can either add the new car owned by their child onto a multicar policy or buy him/her an independent one. Probably the young person should be living with them to have a multi-car policy. It may be necessary to arrange a separate one if he is going off to college or university shortly.
Having a separate policy may be more expensive but will allow the person to start building his own insurance history. However, even it was bought as part of a multicar policy or added to parent’s policy, years of driving experience will still be considered when the person takes his own coverage at a later stage. Plus his age will be higher then.
Most insurers will probably want to know as soon as a young person becomes eligible to drive within the household. They usually take this fact into consideration, regardless of person actually driving the car or not. In fact, the person does not have to be related at all. Just living in the same house is enough for the companies to take notice.
Finally, it can be highly beneficial to shop around even you are just adding your son/daughter on your policy. Additional discounts applied to the increased premium will offer a larger relief. Besides, your current insurer may have a thing with young drivers. Some companies are happy to insure the senior drivers. But they get nervous when a teenage involved and shoot up the premiums.