Monday, February 13, 2012

Public Service Announcement- Insurance

I've worked in the insurance industry for the past 8 years and thought I 'd share some practical advice that affects young drivers. This is very basic stuff, but I'm surprised at how many people have no idea about this. If you are a teenage driver, or if you have on in your home, here are a couple things to keep in mind.

1) If you are a young male, then your insurance rates will be high, even if you are a responsible kid and a great driver. Lots of dumb teenage boys around the country have messed up things for you and ruined your reputation, so just get used to it until you get older or get married. Don't take it personal. Insurance companies have done the research and they know which clients will have accidents and cost them money.

2) If you are an 18 year old kid who wants to declare his independence to the world by buying your own car and starting your own insurance policy, it is always less expensive to stay on your parent's policy if allowed since they have better credit, multi-car discounts, and packaged policy credits that a young teenager just won't qualify for.

The look many young car owners get when they hear their insurance quote.

3) If you are going to buy a car, do a little homework first. I can't tell you how many times I've seen young men who have higher monthly insurance payments than what they pay on their auto loans. Find out how much a car is going to cost before you commit to buy it! Once you finance a car, you are obligated to carry full coverage until you pay it off.

4) If you have a bad driving record (more than one ticket or accident), don't plan on driving a nice car until those claims or tickets drop off your record. Why is it that young kids with the worst driving records always want to drive an Audi, Corvette, Mustang, or convertibles? Get a junker car you can just carry liability insurance on until you can afford a newer or nicer car.

I'm sorry to sound so heartless, but I've just seen too many young and naive guys who are so excited and proud of their new ride until they get the shock of their life when they find out how much it is going to cost to insure a car that they are now legally committed to. (Kind of like waking up and realizing you just got married while you were drunk the night before). Knowing some of these things before you make a foolish commitment can save you you grief and a lot of money.


Kristina P. said...

I love getting letters from insurance company's attorneys saying that we are liable for damage to our neighbor's condo, when they literally could not find any negligence on our part.

Anonymous said...

I agree with you. I'm amazed at how many young kids expect to immediately have the same kind of cars their parents own.

Becky said...

So, what do you think will happen to our premium when we add 3 teenagers to our policy in the fall? Maybe we should all start taking the bus???

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