by Neal Hamou
There is a problem that exists in almost every family household across the country today. Your beloved child has just turned old enough to drive, but he/she needs auto insurance. As a parent, what are your options?
There is a problem that exists in almost every family household across the country today. Your beloved child has just turned old enough to drive, but he/she needs auto insurance. As a parent, what are your options? Would it be cheaper to add you child’s name to your existing car insurance policy? Or would it be a better idea to get him/her a new plan under their name? This article will explain the pros and cons of both options and give you a better direction in handling this important decision.
One of the largest auto insurance discounts around is called the Multi-Car Discount. Any average person would think that if you have to insure two separate vehicles, it would be a perfect opportunity for auto insurance companies to hit you with ridiculous policy premiums. But it’s actually quite the opposite! Almost all of the major auto insurance companies across the Unites States offer a popular discount called the Multi-Car Discount.
This discount states that if you are insuring more than one car on a single insurance policy, you can save anywhere from 10 to 35 percent off your entire monthly payment! This comes in handy when your child is begging you to add him/her to your existing policy because any 16-18 year old kid is doomed to having no cheap auto insurance rates available until a few years later. It is common knowledge that most car insurance companies do not offer cheap rates to children under the age of 18, ESPECIALLY if the child is male.
Calculated risk is the reason for this. Depending on many factors (including age, sex, location, driving history, and basically how at risk your vehicle is to be vandalized or stolen), every insurance company has an extremely complicated algorithm dedicated to calculating how much risk each driver has compared to all the others. The higher the risk, the higher your monthly insurance rates will be.
Give your child his/her own insurance policy under their own name, and they’ll most likely be paying far more than any other option. Add your child’s name and vehicle to your own policy, and you will qualify for discounts as well as save your child a ton of cash on monthly insurance premiums. (If you happen to be paying for your child’s car insurance, you will be saving yourself all that cash.)
