18 May 2009

Car Insurance For Your Kids

Car insurance is going to be a big deal when it comes time for your kids to start driving. The big deal will be the price. Simply put, it is going to be a lot!

Quick - name the riskiest class of drivers on the road. Yes, it would be new drivers. The lack of experience of a new driver means that they are susceptible to making the wrong decision at the wrong time. The definition of experience, after all, is learning from your mistakes. For new drivers, these mistakes often come in the form of accidents.

Insurance companies really dislike risk. The more risk there is with a class of drivers, the higher the premiums that will be charged by the companies. With teens, the risk is much higher. Compared to a senior driver, a teen is three times as likely to get in a crash. Three times! That alone cranks up the cost of insurance coverage.

Your kids are going to start driving sooner or later. When they do, you are going to have to deal with car insurance. Is there any way of cutting down the cost? Fortunately, there is. The key is to go for the discounts offered by the various insurers. When totaled up, they can save you 20 to 30 percent on the premiums.

The first discount you should consider is the good grade discount. Most insurers will offer a 5 to 10 percent discount if the kid drivers maintain a certain grade point average. Why? Well, it tends to require the kids to be responsible and focused, two traits which translate to driving.

The second discount you can take advantage of is the professional training course. The free training through high school, if it is offered, doesn't count. You need to put them in a professional driving school approved by the insurer. This can save you another 10 to 20 percent on premiums and is definitely worth it.

The third approach is to consider bundling all your home and auto insurance needs with one company. In exchange for all the business, they will often heavily discount the cost of insuring the kids. If you can nullify that expense, you can really avoid the hefty price of letting your kids drive.

Buying car insurance for your kids can be an eye and bank account opening experience. Investigate the discount options available to you and you may just find that you can serious cut down the costs involved.

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