The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Articles
  • Books
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

Adding a Teen Driver? Prepare for Car Insurance Sticker Shock

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Insurance
Reading Time: 3 mins read
Adding a Teen Driver? Prepare for Car Insurance Sticker Shock

Teen Driver Auto Insurance Rates

9
SHARES
150
VIEWS
Share on FacebookShare on Twitter

Learn How To Invest In The Stock Market w/Teri Ijeoma. Click Here to Enroll in the Trade and Travel Program Now. Learn More.

My husband, Earl, and I are entrepreneurs who work from home and have one vehicle, a 2012 BMW 750i. We had a 2020 Ford Explorer SUV that we primarily used for business, but we sold it earlier this year and have actually been doing fine as a one-car family.


Last month, however, our 16-year-old daughter, Alexis, got her driver’s license. 

Yay for Alexis … Boo for our wallets! 

 

Our annual car insurance premium for the past year was $1,863. But once we called to notify our insurance company about Alexis’s license, we were immediately told by our insurer, that the next renewal premium will be $4,722 – a 153% increase! 

We’d always heard that teen drivers cause car insurance costs to surge dramatically, but this was a doozy – right amid a time of raging inflation and higher prices for everything else too.

As you can imagine, Earl and I immediately started trying to find price breaks. We asked Travelers about EVERY discount known to man to try to reduce our costs. In the end, here’s what we were quoted: 

  • Good student discount – $274 off

  • Driver training discount – $195 off

  • Online autopay discount – $190 off

  • Pay in full discount – $424 off

Altogether, we squeezed $1,083 in “savings” out of our insurance company. But our new bill will still be $3,639, which is DOUBLE our previous premiums. 

The Travelers rep (who was very nice and professional) did tell us that once Alexis goes to college, we could get another $277 discount if two conditions were met: 

  1. She attended a college or university at least 100 miles from our house; and

  2. She did NOT have a car on campus!

NOTE: We’re already getting a multi-policy discount because we’ve bundled our home insurance and car insurance with Travelers. And overall, I have to say that we’ve had an excellent experience with this company.

Just sharing this information so that those of you with teenagers or younger kids will be prepared when the time comes for them to get their driver’s permits or licenses, and they become teen drivers.

Once they do become a licensed driver, you’re obligated to notify your insurer. Otherwise, if anything happens while your child is driving, your insurance company can — and likely will – reject your claim. 

One other thing: if your child is listed as the “primary” driver on any vehicle, that will typically increase your car insurance rates too. 

So, make sure they’re NOT the primary on a car – unless of course, you actually buy them a vehicle. In that case, it’s kind of hard to claim with a straight face that they aren’t the main driver. 

Next step for us: comparison shopping using an insurance broker to see if we can get meaningfully better rates, or if we’ll be sticking with our current car insurance company.

Wish us luck before our annual car insurance renewal, which takes place in less than 30 days! 

Tags: teen driver
Previous Post

SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme Forsage

Next Post

15 Ways to Fight Inflation, Higher Interest Rates and a Recession 

Related Articles

Insurance

COVID-19: How to Get Your Auto Insurance Rate Reduced

by Lynnette Khalfani-Cox, The Money Coach
lynnette khalfani cox and earl cox
Insurance

Why You May Need Travelers Insurance

by Lynnette Khalfani-Cox, The Money Coach
holidays
Insurance

Holiday Hazards That Can Harm Your Health and Finances

by Lynnette Khalfani-Cox, The Money Coach
auto insurance
Insurance

3 Ways To Get the Best Price on Auto Insurance

by Lynnette Khalfani-Cox, The Money Coach
5 Tips To Make Health Care Costs Affordable Amid ObamaCare
Insurance

5 Tips To Make Health Care Costs Affordable Amid ObamaCare

by Lynnette Khalfani-Cox, The Money Coach
insurance
Insurance

Here’s Why Having Insurance Is More Important Than You Think

by Lynnette Khalfani-Cox, The Money Coach
Where to Find Health Insurance Before COBRA Runs Out
Insurance

Where to Find Health Insurance Before COBRA Runs Out

by Lynnette Khalfani-Cox, The Money Coach
open enrollment
Insurance

3 Easy Steps to Take During Open Enrollment Season

by Lynnette Khalfani-Cox, The Money Coach
life insurance awareness month
Insurance

Life Insurance Awareness Month: The 411 on Term and Whole Life Insurance

by Lynnette Khalfani-Cox, The Money Coach
Next Post
inflation

15 Ways to Fight Inflation, Higher Interest Rates and a Recession 

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Articles
  • Books
  • Get Coaching
  • Contact Lynnette
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist