Adding Newly Licensed Children to Auto Insurance
Adding Newly Licensed Children to Auto Insurance
Families with newly licensed driver should consider all getting auto insurance quotes from multiple insurance companies. The amount of license experience that a driver has is one of the largest factors when determining the premium that will be associated with the driver. This can cause a significant increase to the rate on the policy.
Many times families that have been insured with their auto insurance company for years will add their youthful driver to their policy without checking the rates of the competition. Anybody that has ever added a new driver to their auto insurance plan understands that many times the rates will double or even triple. Consumers that had previously been paying around $1000 per year will see that the rates can go up to as high as $2000-$3000 per year.
Although the current auto insurance may have been the best option and most competitive rate without the newly licensed driver on the policy this may not be the case with them added as a rated driver. Most insurance companies have developed rates that target the market that they are most interested in insuring. Rates will be very competitive for the target market but far less competitive for the types of risks that they are not actively marketing to.
While getting auto insurance quotes with the youthful operator or newly licensed driver on the policy the rates from one company to anther will vary dramatically depending on the types of risks that the insurance company has developed rates to target.
With rates double or triple the amount that consumers had previously been paying the saving available could be several hundreds or even thousands of dollars per year.