By Charlie Spencer
I have seen many parents make mistakes when it comes to insuring their new Teen Driver. Let me share with you “Costly Mistake # 5”.
Placeing the Teen driver on a separate policy– This is usually one of the first options many parents consider. They think if they buy a separate policy for their teen driver, the rates for their other cars won’t go up.
Yeah, that part may be true, but the rate for the teen driver’s car goes way up for 2 reasons. First, there won’t be a multi-policy discount for the single car on the teen’s policy and second, you will have to buy a policy from a “high-risk” insurer. “High-risk” insurance companies charge rates that are more than double of a standard company.
It can cost you much more than higher rates by placing your teen on a separate policy!
The most dangerous problem insuring your teen with a high-risk insurance company is that you can’t buy limits high enough for a teen driver. The liability limits offered by these companies are usually no higher than 100,000 per person, 300,000 per accident and 50,000 for property damage.
Some parents think that’s fine- that they will only sue their child’s insurance company if there’s a big claim. Wrong– a good attorney will go after the parents too. As long as the child is living in the parent’s home or is a dependent, any good attorney will drag you into the lawsuit.
The smartest way to insure your young driver is too insure them on your policy with the highest liability limits you can get.
Call your agent today and make sure you and your Teen Drivers are properly covered.