There is a problem that exists in almost every family household across the country today. Your beloved child has just turned old enough to drive, but needs auto insurance. As a parent, what are your options? Would it be cheaper to add you child to your existing auto insurance policy, or would it be a better idea to get him/her a new plan under their name? This article will explain the pros and cons of both options and give you better direction in handling this important decision.
One of the largest auto insurance discounts around is called the Multi-Car Discount. Any average person would think that if you have to insure two separate vehicles, it would be a perfect opportunity for auto insurance companies to hit you with ridiculous policy premiums. But it’s actually quite the opposite! Almost all of the major auto insurance companies across the U.S. offer a popular discount called the multi-car discount. This discount entails that if you are insuring more than one car on a single insurance policy, you can save anywhere from 10 – 35% off your entire monthly payment!
This comes in handy when your child is begging you to add them to your existing policy. It is common knowledge that most car insurance companies do not offer cheap rates to children under the age of 18, ESPECIALLY if the child is male. Calculated risk is the reason for this. Depending on many factors (including age, sex, location, driving history, and basically how at risk your vehicle is to be vandalized or stolen), every insurance company has an extremely complicated algorithm dedicated to calculating how much risk each driver has compared to all the others. The higher the risk, the higher your monthly insurance rates will be.
Give your child his/her own insurance policy under their own name, and they’ll most likely be paying far more than any other option. Add your child’s name and vehicle to your own policy, and you will qualify for discounts (multi-car discount) as well as save your child a ton of cash on monthly insurance premiums.
You do not need a child turning this age to take advantage of the multi-car discount. If you own two cars yourself, you also qualify. There does not need to be two names on the policy to save money. Anyone can qualify and there are no discriminations or limitations to this discount.
