The cost of your car insurance may double by adding a young driver to your policy. This article focuses on ways to control a young driver's impact on your insurance premium.

Reducing your insurance premiums

• Have your child complete a driver training class, balancing its cost against premium savings and gaining a more competent young driver.
• Ask your insurer if it gives discounts to students with good grades.
• Find a company that bases its premium on the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.
• Does your child have to drive to school? If so, expect your company to charge a higher premium for the increased amount of driving.
• Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver's first accident or minor traffic violation.
• Make sure your new driver understands that poor driving habits can result in higher premiums or a canceled policy.
• Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.
• If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
• Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance convenience against cost.

Important: don’t pursue lower premiums blindly. It's important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy. Talk to an insurance professional about more strategies to keep your new driver affordable.

Revised: 08/01