by helpyouguys » Thu Jul 15, 2010 03:06 pm
Many of us are in the same boat of seeing our son or daughter ready to take on the world behind the wheel of their own vehicle. This can be a very nerve wracking time for the parents and can be a problem when it comes to making sure they are insured properly in case the unthinkable should ever occur. There are different ways that you can look at student auto insurance, and be sure that everyone is comfortable with the cover.
Many times parents choose to put their child on their existing auto insurance policy. This has some benefits but it also has some draw backs. If your child has an accident, which results in a claim then it is going to affect both your pocket and your rating. You will need to pay more for your insurance cover now as well as having a claim recorded against your record. This is not ideal and can result in a bad result for both parent and child.
If your child was to take out student auto insurance by themselves, the general opinion in the population is that it is an expensive exercise. Sure, insurance agencies take into account the age of the driver and therefore the experience that they have on the road. Yes, students pose a higher risk than other drivers over the age of 25. There are some insurance agencies that understand, however, that punishing the parents pocket and rating isn't the way to go either.
A great way that you can get a wide range of student auto insurance quotes is by checking out a website that will provide a range of quotes depending on your circumstances, all in the one place. There are many insurance agencies that specialise entirely in student auto insurance and can be very competitive when it comes to their rates.
Many times parents choose to put their child on their existing auto insurance policy. This has some benefits but it also has some draw backs. If your child has an accident, which results in a claim then it is going to affect both your pocket and your rating. You will need to pay more for your insurance cover now as well as having a claim recorded against your record. This is not ideal and can result in a bad result for both parent and child.
If your child was to take out student auto insurance by themselves, the general opinion in the population is that it is an expensive exercise. Sure, insurance agencies take into account the age of the driver and therefore the experience that they have on the road. Yes, students pose a higher risk than other drivers over the age of 25. There are some insurance agencies that understand, however, that punishing the parents pocket and rating isn't the way to go either.
A great way that you can get a wide range of student auto insurance quotes is by checking out a website that will provide a range of quotes depending on your circumstances, all in the one place. There are many insurance agencies that specialise entirely in student auto insurance and can be very competitive when it comes to their rates.
Posted: Thu Jul 15, 2010 05:46 pm Post Subject:
Many times parents choose to put their child on their existing auto insurance policy. This has some benefits but it also has some draw backs. If your child has an accident, which results in a claim then it is going to affect both your pocket and your rating. You will need to pay more for your insurance cover now as well as having a claim recorded against your record.
More of your inexperience showing up, helpyouguys. Each driver maintains his or her own driving record. If one driver (out of several on a policy) has an at-fault accident, and remains on the same policy, then yes, the cost will probably go up. Remove the "offending" driver from the policy, and the cost will definitely go down. If my wife is on my policy and has an at-fault accident, it does not attach to MY record, but it affects our cost of insurance.
students pose a higher risk than other drivers over the age of 25.
This is a bald misstatement! Drivers under 26 pose a higher risk than drivers 26 and older. Just a statistical fact, based mostly on years of driving experience, which is what CA insurers must consider as a primary rating factor, rather than age. A person first licensed to drive at age 30 has less experience than a 30 year old licensed at age 16, and the latter will receive a more favorable rate.
Sticking with statistics, students who maintain 3.5 and higher GPAs also tend to be slightly better risks as drivers than their same age peers who have GPAs under 3.0-3.5.
Although CA law permits a person age 16 to contract for insurance, most insurers do not willingly do auto insurance business with them. It is preferred that persons under age 18-21 (students or not) who reside in the same household be added to their parents' policy -- for the obvious reason that the parent is less likely to lapse the policy.
Over age 18, it's a matter of personal preference or economics with regard to the cost of insurance for the 18+ year-old. But there will always be an advantage to owning a policy that insures multiple vehicles than a single policy covering a single vehicle.
There are many insurance agencies that specialise entirely in student auto insurance and can be very competitive when it comes to their rates.
Finally, insurance agencies do not set "rates", insurance companies do. The competition is between carriers not agents.
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