Conventional wisdom says that when your teenager reaches driving age, you add them to your auto insurance. Here at Schneider Insurance Agency, we want you to know that making that choice may not suit your needs, and it could cost you more money.
Adding an adult, who also resides in Gahanna, OH may not hurt your premium costs, providing they have a good credit score and clean driving record. Adding a teen to your policy opens you to new risk factors, and this can increase your premiums. Teens exhibit some of the riskiest driving and have the least experience on the road.
A Better Solution for Teen Auto Insurance
Schneider Insurance Agency suggests a safer solution that can also help your teenager learn about adult responsibilities. Help your teen apply for their own auto insurance. They can obtain an auto policy in their own name. Have them pay for the premiums with their own money from an after-school job or savings.
This option protects you from increased risk factors and premium increases. It also teaches teens financial responsibility and provides them with a basis for establishing a credit record. By setting up an auto payment for the monthly premium, they build a record of paying a crucial bill on time.
Insurance companies don’t always report to credit bureaus, but they do when an individual misses a payment or lets their insurance lapse. Helping your teenager establish their own auto insurance policy helps them build a credit history while still in high school, and that can lead to lower interest rates on college or vocational school loans and credit cards.
Contact Us Today
Call or email Schneider Insurance Agency, serving Gahanna, OH to get your teenager’s application started before they hit the road. Let us help you protect your and your family’s financial security.