When Should Your Child Get Their Car Insurance Policy?

As your children get older, they look for ways to increase their independence. They go to school and find a part/full-time job. The older they get, the less they will rely on you for their most important expenses. One of these is auto insurance. When you have a child who is graduating from high school and moving into college, you may be at a loss as to when they should apply for their own car insurance policy. This guide will help you get the clarity you need to make the right decision.

Risk Factors Attached to Age

Getting an auto insurance policy for a young adult can be quite expensive. This is primarily due to their inexperience behind the wheel, as well as other factors. When your child first starts driving, it is a wise idea to keep them on your policy for as long as you can. This gives them a chance to gain the experience they need without spending most of their modest paycheck on a policy that just covers them. The option of buying your child their auto insurance makes better sense if they are getting ready to move out or graduating from college. 

Boy Vs. Girl

Boys tend to represent a higher risk than girls. While this fact is debatable at times,  insurance companies tend to look at it as a steadfast rule. As a boy, there are ways to balance this out and get affordable premiums, like carrying a high GPA or taking a reputable defensive driving course. Holding down a job may weigh in your favor as well. However, it still depends on the insurance company to determine your premium.

Possible Discounts

There are many discounts your young adult can take advantage of, like a good driver discount. Good driver discounts will go into effect as long as your child has their license and does not get a ticket or get involved in an accident. Another discount is the good student discount. Good student discounts are available to students who carry a higher than average GPA or stand out in terms of student activities and accomplishments. They can also get a discount when they bundle their policy. For instance, if your child lives in a dorm or rented apartment, they can bundle their renters insurance along with their auto insurance to receive discounts. 

Weigh the Options

It’s always important to weigh your options. For some students, it’s actually best if they stay on their parent’s auto insurance policy until they graduate. For others who are already out on their own, remaining on their parent’s policy can be costly. If you have a child who is ready to leave the nest, you will want to make some adjustments to your insurance policies, especially your auto insurance policy.

After weighing your option, in case you decide to get your child their auto insurance, our experts at Locke Insurance Group can help you with the right auto insurance for your child. Contact us today to learn more!

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