Parents of Teen Drivers: Special Report
It can be stressful for parents to have a new driver in the home. You worry about their safety. Every parent does.
Now that you’ve taken every precaution possible to make sure your child drives safely, let’s learn how to avoid paying outrageous insurance rates and protect your family’s future from a lawsuit. A lawsuit can cause financial ruin for your entire family for years.
This report will reveal secrets that most people in the insurance industry would never want to know. It includes all agents, claims adjusters, as well, insurance company executives.
The insurance industry’s most secretive secrets will be revealed to you!
Why is this secret so well kept from the public? It is because if everyone knew the secrets, it would be costly for insurance companies.
These secrets are mine to share with you. Because I can. It’s good business for me.
You see, my job is not with an insurance company. I’m not an employee who must do what my employer (the insurance company), tells me. I am a businessman who works for my clients. Not one company.
Knowing the whole truth about this business is a huge benefit to my clients. They are able to understand their rights and find the best way to get the maximum coverage for the smallest amount of money.
Being able to offer my clients 100% loyalty and looking out for their best interests has made my business a success in many ways. But, the most important thing is that my clients trust and respect me. My clients stick with me for many years, and they even ask me to help their family and friends.
Okay, let’s move on to the reason you are reading this report.
These are the 7 most costly mistakes parents make when buying insurance for teenage drivers
Let’s start with #7 and work our ways up to the most important…
Costly Mistake #7
Low deductibles – The amount you pay before your insurance kicks in is your “deductible”. If you have a $1,000 claim with a $250 deductible, your insurance company will pay the remaining $750.
You’ll have to pay more if you file a claim by raising your deductible. Your premium will drop if you increase your deductible, sometimes by as much as 15%-30% for comprehensive and collision insurance.
The rates for young drivers tend to be higher so savings for higher-deductibles can also be higher. If you have a claim, it is possible to save enough money in a short period of time to pay a higher deductible.
You might consider increasing your deductibles, particularly for the car that your teen drives.
Costly Mistake #6
Don’t miss out on ALL discounts – Insurance companies reward drivers they believe are high-risk with significant discounts. Here are some discounts you might be interested in:
• Safe Driver discount
• Good Payer discount
• Automatic seatbelts discount
• Airbag discount
• 55 & Retired discount
• ePolicy
• eBill
• Good Student or @school discount
• Multi-policy discount (more on this later)
Some insurance companies do not offer all these discounts. Find a company offering these discounts. You could be losing 40% to 60% by not taking advantage of these discounts
Costly Mistake #5
The young driver should be on a separate policy. This is often the first option parents think about. They believe that the rates for their other cars will not rise if they have a separate policy for their teen driver.
Although this may seem true, the teen driver policy rate is much higher for two reasons. A discount will not apply to multiple vehicles on the teen policy. Furthermore, high-risk insurers won’t offer multi-policy discounts. Rates charged by high-risk insurance companies are twice as much as those of standard companies.
If you place your teen on a separate insurance policy, it can be more expensive than the higher rates.
High-risk insurance companies don’t allow you to buy higher limits than the state minimums. This is the most dangerous thing about insuring teens with high-risk insurers. These companies offer liability limits that are no higher than 50,000 for each person, 100,000 per accident, and 25,000 to property damage.
Parents may think it’s okay to sue their child’s insurer only if they have a large claim. False. A good attorney will also sue the parents. A good attorney will help you get into the suit as long the child is not living at the home of the parents.
Insuring your young driver on your policy with the highest liability limits is the smartest way to protect them.
Costly mistake #4
You should not insure your house and cars with the same agent twice. If you have two different agents for your home and car insurance, you are most likely overpaying.
Insurance companies earn more when you have everything insured with them. They offer big discounts on multiple policies. They know that having more than one policy will make it easier to stay with them for longer. That’s fine, provided you save money and get great service. Right?
How do you know if you’re actually saving money? You can tell if your agent is concerned about getting you the lowest rate by how frequently they ask you to review your policy. You will know that your agent is trying to get you the best insurance price by inviting you to come in and look over your policy.
A local agent can also help you avoid having to join multiple insurance companies. Trustworthy agents are willing to look at any other policies you have and advise you if they are offering any discounts.
Costly Mistake #3
Don’t take advantage of your credit rating – This little-known secret can help you save thousands over the years.
For decades, insurance companies have used credit ratings to underwrite premiums. They know that responsible drivers are more likely to have good credit than those with less. They offer lower rates for these customers.
Your good credit can also be rewarded with low rates for your teen driver!
Did you know that insurance companies can offer additional low rates to teens who have good credit ratings? That’s right. Parents with good credit will be able to offer discounts for their teen driver. They believe that if parents have good credit and are reliable, then the young driver will likely be as well.
My office can help you find out how much you could save by having good credit.
Costly Mistake #2
You can save money by lowering your liability limit – this mistake could lead to financial ruin!
Sometimes parents will reduce their liability limits in order to save money. They think nothing will happen. Teen drivers are five-fold more likely to be in an accident than experienced drivers, and the cost of a teens driver’s claim is usually three to fivefold higher.
The best decision a parent can take is to raise the liability limits to minimum 250/500/100 and to add a million dollars to their umbrella. This is the best way to get excellent coverage at a low price. This can be done while still saving money.
You can save money and get high-quality coverage by following the advice in this report.
This is the #1 most costly mistake parents make when insuring their teenage driver
Use an employee of an insurance company as your agent. Don’t give your hard-earned money to someone who isn’t an expert in Auto and Home insurance. The agent doesn’t care about your safety or how much you save. Their loyalty lies in their ability sell you a policy that is too narrowly tailored to your needs.
An authority is someone who understands the intricacies of insurance policies and can listen to your needs to meet them. It will not be difficult to locate the authority in your local area for auto and home insurance. If they ask for your name, rank and serial number, they will usually do the minimum to get you the best price. These are the vast majority of agents and insurance companies that have their names on a shingle.
You want someone who will talk with you about financial security, safety of your teen driver and discounts you might be eligible for. It’s the agent who offers the best value.
Only an expert or authority can represent your best interests as an insurance agent. These agents will work hard for you, and they will help you – especially if you have to file a claim.
Insurance is a complex business. Policies, coverages, endorsements, exclusions. I’ve analyzed the details to find the best auto insurance companies, with the highest rates, discount and best claims service.
For a free quote on your coverage, contact my office.
I wish you and all your loved ones happiness, health, prosperity, and success!