Can You Afford to Let Your Teenager Get Their Driver’s License?
Ann and I have 4 boys. Three have passed the monumental age of 16 without getting their coveted driver’s license.
Yes, my wife and I delayed this process due to concerns for their safety with teen crash rates soaring higher than any other age group. But there is also a financial consideration.
Did you know that the average premium will increase by 80% when you add a teenager to your existing policy? That’s one of the reasons that our boys don’t get full privileges to drive until they are 18. Popular? No, but it has worked well in our family, teaching our boys lessons of patience, contentment and responsibility.
But if you already have a teen driver, take heart. There are ways to reduce those inflated premiums!
Your student’s good grades can payoff. Many insurance companies offer discounts for good students in high school and college. But you must be proactive in asking your insurance company about potential discounts.
Another way to decrease that premium could be by enrolling your teen in driver’s education or a driver-training course that will also give you additional peace of mind as your child drives off for the first time on his own.
And some companies offer personalized insurance rates if you or your teen have a device installed in your vehicle that monitors your actual driving. So the better you drive, the more you can save. Now that’s motivation to lay off the gas pedal!
And last, do the research before you let your teen buy a car. Check to see how a car’s safety equipment and general makeup affect your rates.
That teen driver may not be the only financial stress in your life. Many are dealing with overwhelming credit card debt. It can feel like you are drowning, but there is hope. Our friends at Christian Credit Counselors offer a helping hand in creating a debt management plan specifically for you.