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Should teenagers have a separate car insurance policy?

The determination as to whether or not you should establish an independent automobile insurance policy for your child or if he or she should be added to your existing policy is dependent upon a few factors. It would behoove you financially to inquire of your insurance company what the additional expense would be to add your child to your insurance policy. It is a wise idea to be mindful of the fact that if multiple vehicles are covered by your policy, you could see a sharp increase in your rates for each vehicle on the policy due to the addition of your child. Dependent upon calculations by each individual insurance provider, your premiums will vary with each quote.

The factors about your child that an insurance company takes into consideration include his or her age, the amount of time he or she has possessed his or her license, his or her driving history, and the estimation of the annual mileage of the vehicle. If you wish to allow your child to drive every vehicle on your policy, make certain that he or she is listed specifically on your policy for each vehicle. If you feel that your premiums are extraordinarily high, it might be time to seek the services of another company. Each company will quote you a different rate, so by using price comparison techniques, you will be able to find an affordable rate. 

If your child drives only one vehicle designated for him or her, it may be financially savvy to open an insurance policy that only contains your child on it. More often than not, parents purchase "clunker" vehicles for their children. If such a vehicle is paid off, you may be required to maintain only a minimum of liability insurance on the car. Liability insurance is fairly cheap, and it will not cost you an extreme amount of money. If you are seeking to avoid increasing your premiums, this might be a solution to your dilemma. However, you must remember that your child will not be covered by your insurance company for any other vehicles in the household.  

There are a few simple steps you can take advantage of to save money, despite whatever course of action you may choose when insuring your child. You should investigate and inquire with your insurance agent about any discounts that may be available to your child. Students who have completed a driver's education course or who have maintained exemplary grades are often eligible for one. If your child maintains a clean driving record, once he or she has been in possession of his or her license for three years, he or she will be able to receive a "good driver" discount. It is always wise to occasionally check the prices you are charged by your insurance provider against quotes from other companies to ensure you are not being overcharged. It can also benefit you to toy with the idea of increasing the deductible on your policy. An affordable rate for a policy that includes your child is available to you. 


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