You ’ re right to be worried — your auto-insurance premiums are probably to skyrocket when your adolescent son starts driving. But a few key moves can help you cut costs significantly. My 16-year-old son is about to get his license, and I ’ megabyte afraid of what that might do to our auto-insurance rates. How can we lower indemnity costs ? 5. Tell your insurer if your child goes away to college. If your child goes to school more than 100 miles away and doesn ’ t take a car, you can normally get a big break on your premiums but still have coverage when he or she comes base for vacation.
6. Ask about other discounts for teenage drivers. Some insurers offer discounts for driver-safety programs, cutting costs if the kids take a special class, watch a DVD, or read a driver-safety book and take a test. Ask your insurance company what your kyd needs to do to qualify. 7. Make the most of multipolicy discounts. You ’ ll normally get a break on your car policy and your homeowners policy if you keep both policies with the like company. You may get an extra deduction if you include an umbrella policy, which provides extra liability coverage beyond your auto-insurance limits and can be particularly valuable when you have a adolescent driver.
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8. Shop around. Some insurers offer much better deals than others for adolescent drivers, so it ’ sulfur important to compare costs. The indemnity company that offered the best rate for you and your spouse may have some of the highest rates when you add a adolescent male child to the policy ( and it ’ south about always better to add the child to your policy preferably than have him get his own policy ). “ One company we work with is truly big with young drivers and another is atrocious, ” says Mujadin. You can get price quotes from several insurance companies at www.insurancerates.com ( a new locate by InsWeb.com ) or get personalized serve from an mugwump policy agent who works with many companies ( you can find a local independent agent at www.iiaba.org ). You may not want to switch from a longtime insurance company barely to save a few dollars, however, because your current company may be less likely to raise your rate or dribble you if your child has an accident, says Mujadin. “ If you stay with the company where you ’ ve been, there ’ s some value to that — there ’ mho more board for forgiveness. ” besides keep in mind that if you ’ ve been getting a multipolicy discount, your homeowners-insurance pace might rise if you take your auto-insurance business elsewhere. One thing you don ’ deoxythymidine monophosphate want to do in an undertake to reduce your premiums is skimp on liability coverage. Mujadin recommends indebtedness limits of at least $ 250,000 per person, $ 500,000 per accident and $ 100,000 for property price ( or a policy with a “ combined single limit ” of $ 500,000, when available, which doesn ’ metric ton limit the coverage to $ 250,000 per person involved in the accident ). young drivers are more probable to have accidents, and lowering your indebtedness limits could leave you on the hook for tens of thousands of dollars in expenses if your child does hit another cable car or hurt person .