When it's time to teach your child how to drive, you imagine getting in the car and letting them practice behind the wheel. That is extremely important, but there is a lot more to the responsibilities of driving a vehicle than actually driving the car.
It is equally as important to teach your teen about how car insurance works. It will help them when they're behind the wheel on your policy, and it will help them when they move out of the house and get a policy of their own.
Getting Good Grades Can Keep Costs Low
One of the first things you should talk to your child about is the cost of car insurance. You don't necessarily have to go into the details of how much it costs to add them to your policy, but they are likely to be surprised at how much it costs to cover all of the vehicles that are driven in your household.
That's a good place to start because then you can talk about ways your teen can help you save on your car insurance. One of the biggest ways they can help you save is by getting good grades.
In general, student drivers are able to reduce car insurance premiums with a GPA of 3.0 or higher. Encourage and support them in getting good grades. Then, you both can talk about the difference in price. It's a clear way to illustrate the importance of getting A's and B's!
Where to Find Insurance Information in the Vehicle
It is important to talk with your teen about essential things that should be kept in the car. A few things you can put in the car together include:
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Spare tire and Fix-a-Flat
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Jumper cables
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Tire pressure gauge
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Car repair information, like a AAA card
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First aid kit
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Ice scraper
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Car charger
It also includes having the registration and insurance information in an easy-to-reach spot in the car. That usually means keeping it in the glove compartment. Show your child what it looks like and where to find it so it can be produced quickly in case a police officer requests to see it.
Make Sure They Know Which Car They Should Drive
If there are multiple people living in your home, chances are, you've got multiple cars in the driveway. If you add your child to your car insurance policy, the provider will assume the child has access to all of the vehicles on the policy. Fortunately, students with learner's permits are relatively affordable, but when they get their license, it can cost you a lot of money.
Instead, add your child to your policy with permission to drive just one vehicle. It will keep your costs lower than if they could drive all the vehicles. You just have to make sure which vehicle they're supposed to drive is clear so they don't grab the keys to a car they aren't insured to drive.
Teach Them About Deductibles and Premiums
It's important to go over the practical aspects of how your car insurance works for your family, but it is important to talk about more general aspects of car insurance too. That way, it doesn't come as a surprise when your student grows up and gets their own insurance.
It's important to go over the difference between deductibles and premiums. It is also important to talk about the limits of a policy, as well as the different kinds of features you can add to your plan. Providing them with tips on how to keep costs low will serve them well in the future.
Inform Them When It's Time for Them to Get Their Own Insurance
Unlike other types of insurance policies, your child doesn't have to get their own policy simply because they turned a certain age. Instead, your child can stay on your insurance policy as long as they are living in your home. In most cases, that includes college students who live on campus but return home for holidays.
However, when they are moving into their own place and are no longer a resident of your house, it is important to inform them that it's time to get their own insurance. You don't want them to assume they're still on your policy when they aren't!
Teach your child to drive, but there are plenty of other things to teach them too. The points on this list regarding car insurance are a great place to start.
