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Teens

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Every parent eventually has to make the big decision, pay for auto insurance for their son or daughter or insist they pay for their own. Making a good decision is difficult particularly when teens and others think that a teen's first car should come from parents. There is also the added pressure of being the family chauffer and needing some relief. Let's face it; we want our teen to drive, but don't want the additional liability or expense. Being a driver is an important responsibility, literally holding the life of others and oneself in the balance. However, the choice is clear.

Teens with their own policy take on the greater liability, thus protecting the family from possible bankruptcy from a claim. Most of us don't realize that one accident with a fatality involving our teen driver can bring financial ruin. A lawsuit can rob a family of everything, including their home in the event of a fatal accident. Once lawsuits have moved through the court, home owners may discover a lien has been placed on their home. Sell it, and watch the proceeds go to the plaintiffs.

Statistics have taught us that boys tend to be risk takers, drive faster, and mature more slowly than girls. Consequently, insurance for a boy under the age of twenty-one can be astronomical, usually higher than for a girl of the same age. Insurance companies have adjusted their rates to reflect statistical facts, so who can blame them? Think about it; higher rates tend to help keep younger boys off the road, unless parents pay for the insurance.

Parents who have refused to pay for insurance still face risk of a lawsuit if their teen lives at home. Ironically, a recent call to a major insurance company revealed that in the event of a fatal accident, parents will most likely be sued if the teen is over eighteen and still living at home. Why? The insurance company contends that parents are still guardians and responsible. Yet they refuse to provide quotes for young drivers over the age of eighteen to parents because they are considered adults.

Help reduce teen rates by encouraging a B average in school, providing driver education classes, and making wise choices on the type of car. An older four-door sedan costs less to insure than a smaller sportier car. Lowering the distance driven will also be a factor in determining insurance costs. By maintaining a clean driving record, teens may qualify for insurance discounts as they become older. The teen driver must understand the responsibility before getting behind the wheel of a car. Paying exorbitant insurance costs will bring a much needed reality check.

Learn more about this author, Linda G. Hull.
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