Copyright ©1996, ProMotion, inc.
www@acloserlook.com
Dr. T's Rx:
Now that your teens are in the real world, they'll learn how to work out the best deal they can with both you and the insurance company.
You might agree to pay for insurance if your kids agree to drive one of the family cars instead of owning their own. Adding a teenager to your policy can easily double your premium, but the cost will be even higher if your teen owns her own car. Or maybe you'll contribute to the cost of the car but turn insurance and all other ongoing expenses over to your kids. One father paid his son's insurance for six months--long enough for the boy to get a job and make the payments himself. The point is, neither the car nor the related expenses should be a giveaway.
If it takes your kids a while to scrape together the cash they need to take the wheel, so much the better. Teens age 16 are injured in crashes 14.7 times per million miles traveled by that age group. That figure drops to 10.2 for 17-year-olds. One dad paid his daughter $50 for every month she put off getting her license, figuring the extra peace of mind was worth it.
One way to save money on insurance is to choose an older vehicle with low resale value, so you can skip comprehensive and collision coverage. You shouldn't cut corners on liability coverage, but you may qualify for discounts if your child is an occasional driver (driving the cars on your policy less than half the time); is a good student (in the top fifth of the class, on the honor roll or has at least a B average); has completed a driver's education course; or is a nonresident student away at a college or boarding school at least 100 miles from home without a car.
Copyright ©1996, ProMotion, inc.
www@acloserlook.com