Do you have a teen driver that’s ready to get behind the wheel this year? Well, before you hand them their own set of car keys, it is essential to weigh your coverage options to make sure they are properly insured.
You may already know that adding a teen driver to your auto insurance policy will likely increase your rates. But do you know why? Here are some surprising statistics:
• According to the Canadian Automobile Association, novice drivers are 45% more likely to be involved in a crash than experienced drivers.
• Crashes among new drivers tend to be more severe. One in four crashes involving new drivers results in an injury or fatality.
• Canadian teenagers 15 to 19 years old represent less than 7% of the total population. However, they represent 19% of all passenger fatalities and 19% of all serious injuries to passengers in Canada.
Because the risk is so high that teen drivers may be involved in an auto accident, many of the corners parents cut to lower their insurance premiums often end up costing them more in the long run.
Think twice before you decrease coverage limits, opt out of certain coverages, or raise your deductible. You don’t want to be in a situation where you have to pay out of pocket for someone else’s medical bills because you wanted to shave a few dollars off your premiums.
A Safer Way to Cut Your Premiums
There are still ways you can save money on your premiums without cutting your coverage.
1. Encourage your teen driver to make good grades: not only is this a smart move for their future, but it could earn you a discount of up to 20% off your premiums.
2. Choose a car with safety features: things like anti-lock brakes, side and front airbags, and anti-theft devices can help lower your rates.
Your insurance broker can discuss all the discounts available so you can make your auto insurance more affordable for your teen driver. Give them a call to review your options.