(MoneyWatch) Does the thought of your child behind the wheel of a car scare you? Well here's something else to think about: Adding a teen to your car insurance policy can increase your rates by 44 to 62 percent, according to a study by Insurance.com. Unfortunately, teen drivers are involved in significantly more accidents than adults, so they cost much more to insure. And yes, many companies will charge you more to insure a son than a daughter because insurance companies have data that indicates male teen drivers are more risky drivers. Here's some advice on managing car insurance costs for your teen driver: For starters, it's usually cheaper to add your child to your current policy as an additional driver, instead of buying him an individual policy. This way, all of your discounts will be passed down to him. When your teen driver goes away to college tell your insurer. If your child goes to school more than 100 miles away and doesn't take a car, you can usually get a … [Read more...] about How to save on your teen’s auto insurance
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Last Updated Feb 8, 2011 10:19 PM EST When most people think about the major life expenses, buying a home and funding your kids' college educations come to mind. But what if I told you that the average family will spend more than $84,000 on auto insurance over their lifetime? Would you start taking a harder look at your premiums and shop around for better rates? Insurance.com, a website that sells auto insurance, came up with the $84,000 tally by looking at premium quotes for drivers who first purchase a policy at age 21, get married at 27 and add two teen drivers when between the ages of 46 and 50. As shocking as the grand total is, it should actually be much higher. You see, Insurance.com is using 2011 dollars and did not adjust its lifetime figure to account for inflation. With this in mind, I decided to scour CBS MoneyWatch and the rest of the web to find the best advice on how to save money on auto insurance. Here are four articles worth reading: ABCs of Auto Insurance road map … [Read more...] about How Not to Spend $84,000 on Auto Insurance
Last Updated Nov 2, 2010 1:34 PM EDT I can't think of too many parents who want their teens to learn to drive. First, it's dangerous. Young drivers are four times more likely to get into an accident than older folks. Teenagers also cost big bucks to insure. On average, Mom and Dad will have to shell out an extra $620 a year to add Junior to their auto insurance policy, according to Insurance.com. How many cars you have also dictates the cost for adding a teen to your policy. If you have two vehicles, expect your premium to jump 58%, according to Insurance.com. Buy your kid a car and a three-car household will see its policy increase 62%. Other than refuse to let your teen get a license, there are a few things you can do to decrease the hit your policy will take. First, shop around, says Kat Zeman, a spokeswoman for Insurance.com. Rates vary quite a bit from company to company and some charge less for teen drivers. So it always makes sense to consider comparing rates rather than just … [Read more...] about Auto Insurance: The Cost for Adding a Teen Driver
Last Updated Mar 14, 2011 5:54 PM EDT You know that accidents, traffic tickets, and even your credit score can determine your auto insurance rates. But so can the state where you live. According to a just-released ranking of state-by-state costs from the web site Insure.com, average rates in the most expensive state -- Michigan -- are two and half times as high as in the cheapest state, Vermont. "The rankings demonstrate how factors like state laws and the judicial system can be the driving force behind high rates," says Amy Danise, senior managing editor of Insure.com. After Michigan, where the average rate is $2,541 a year, the second-highest rates are in Louisiana, where drivers pay an average of $2,453. Three other states had average rates above $2,000 a year: Oklahoma, Montana, and Washington, D.C. Only Vermont ($995) averaged below $1,000. But South Carolina at $1,095 was not far above that mark. Both states encourage competition among auto insurers. The high rates are … [Read more...] about Auto Insurance Costs: Where Does Your State Rank?
By Jason Notte/TheStreet Pay-as-you-drive insurance has become an enticing option for drivers, but does reduced mileage always add up to big savings? It depends where you live and who's your insurer. Still fairly new in most states, this performance-based insurance tracks driving behavior through small sensors installed in a car or by an existing on-board communications system. That sensor feeds certain information back to the insurance company. For providers including State Farm and MetroMile, that means strictly counting the miles you're driving. For Progressive's Snapshot program, however, a small wireless device under the dashboard of a car records not just how many miles are driven each day, but how often a vehicle is driven between midnight and 4 a.m. and how often a drivers slams on the brakes. Other insurers including Allstate, The Hartford, Liberty Mutual, GMAC and Travelers have similar programs. Even with those more in-depth programs, however, mileage plays a huge role in … [Read more...] about Is mileage-based auto insurance worth the discount?