My Baby Has Grown Into a Teenage Driver-What do I do?
So..... your baby is now a teenage driver, with a license in one hand, car keys in the other, your credit card in their pocket to buy gas and a desire to hit the road. Your little baby is all grown up...............sort of. Now, it is truly time for you to pay the price. The price of insurance that is. Teenage drivers and insurance are like rabbits, the closer your teen reaches driving age, the price of your insurance multiplies exponentially.
Some parents try to hide their children from the insurance company. Isn't that something considering we are so proud of them in regards to their other activities. Insurance companies have gotten smarter over the years and start asking the question, "Do you have any little ones?" And we are thinking aren't they kind to be asking about my children..................NOT. Beware, the insurance industry starts tracking your little one at age 2 or younger and also gathers the birthdays. So, for that kind question that you answered 15 years ago, you are now being faced with increased insurance premiums.
Other parents try to play hide the child between divorced parents.
"Oh, no, she does not live with me, she lives with her mother."
You may get away with this for a while but it may ultimately come back and haunt you if an accident occurs. Because when that teenager has an accident, someone will be looking for coverage and that someone is you.
Some parents try to buy an older car and add the teenager and older model car to the policy with that child being matched to that older car. Nope, not gonna work either. Most states allow the insurance company to place the highest rated (Risk ) driver with the highest rated car. For instance, you purchase a 2004 Toyota Corolla for your child to drive and you drive a 2009 Toyota 4Runner. That teenager will most likely be rated to your 20014 Toyota 4 Runner. Thus, a higher premium than you were expecting will be charged.
Some parents try to place the vehicle in the teenagers name and buy a separate policy for the teenage driver. Unfortunately, if the child is a household member, some carriers will not allow this and if they allow it, they will insist that the same limits must be carried on the seperate policy as you carry on your own policy.
I guess we could just not let them drive until age 25 or until they could pay for their own insurance. Problem with that one is that insurance is not rated on AGE, it is rated on driving experience. So even if we do not let them drive until 25, they would be rated just as a 16 year old drive would be rated. Which, by the way, is the same as your 80 year old grandmother would be rated if she just became a licensed driver for the first time.
LESS EXPERIENCE = MORE ACCIDENTS
All of that being said, the best thing to do is check out the quotes from several Insurance Companies, pray a little, set aside a little more money for the extra premium and just hold on for the ride of your life.