LEGAL MATTERS: How To Lower Your Teen’s Car Insurance Bill
Wednesday, June 20, 2012
Next to teaching your teenager to drive, the scariest thing you might encounter with a new teenage driver could be your insurance bill. All too often parents try to avoid this cost by deliberately failing to inform their insurer that there is another driver in the household. Failure to inform your insurance company of the new driver, or worse, providing false information to your insurance company, can potentially put insurance coverage at risk.
As parents of teenagers, we know exactly what you’re going through, but there are better and smarter ways to keep your insurance bill down. While insurers may vary, there are some discounts that are largely applicable to most insurance companies.
Smart moves to save money
Have your teen take road driving instructions from a driving instruction school approved by the Rhode Island Division of Motor Vehicles. While this may cost more than teaching them to drive yourself, it may save you money on your insurance and on antacid tablets.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRemind your new driver to keep his or her grades up. Students who have a B or higher grade average usually receive a discount.
Girls also have lower premiums than boys. Unfortunately there is not much you can do about this one. The good news is that if you have a girl it may actually make up for the money teenage girls spend on shoes and clothes.
Don't forget the vehicle
As a general rule, the safer the vehicle, the less the insurance premium. An old beater may save you a lot of money in car payments, but you may well end up paying more in insurance if the car is not considered safe.
You can also raise your deductible, although make sure it is something you feel you are comfortable paying out of pocket. Not surprisingly, first-year teen drivers are statistically involved in more accidents than other teen drivers.
Finally, but most important, make sure your children just how important it is to wear their seatbelts, refrain from texting and talking on the phone and remain sober while behind the wheel.
The foregoing is offered for informational purposes only and is not legal advice nor does it create an attorney-client relationship.
Susan G. Pegden is a litigation associate with the Law Firm of Hamel, Waxler, Allen & Collins in Providence. She is admitted to practice in Rhode Island and Massachusetts and is a member of the Board of Governors of the Rhode Island Association of Justice (RIAJ).
Sean P. Feeney is a partner with the Law Firm of Hamel, Waxler, Allen & Collins. He is admitted to practice in Rhode Island, Illinois and Wisconsin. Mr. Feeney is a former special counsel to the City of Providence, military prosecutor with the United States Marine Corps and Special Assistant United States Attorney for the Central District of California.
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