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How to save money when insuring your teenage driver on your Michigan no fault insurance policy!

Posted on: March 14th, 2010 by admin

The dreaded day has finally come, your teenager is ready to start driving!! This is a huge step in their life and it is something that requires some planning to make sure that they are ready to take the wheel. As parents, there are a couple of steps parents can take to improve the odds that they will become a safe driver. Here a couple of tips that you should consider

  1. Make sure your teenage driver is responsible in all aspects of their life.  If your child is a trouble maker who has a problem with authority this behavior will transfer over to their driving habits.  Make sure your child is ready for this new responsibility.
  1. Play an active role in your child’s development. Get involved with their training.  Expose your permitted teen to as much driving and different scenarios under your supervision to ensure they are ready to take the wheel by themselves.
  1. Newly licensed teens need rules. Put a curfew on them with driving hours. Limit the amount of passengers they are allowed to reduce distractions for them.

The painful part is adding your teen to your Michigan no fault insurance policy! Expect your rates to double on the car that he or she most often drives and triple the rate if they are listed as a principal driver on one of the vehicles. How do you try and reduce the cost you are paying to add your teen on your Michigan no fault insurance policy?  Here are a couple of money saving tips to consider….

  1. Keep your teen as an occasional driver as long as you can. Since they will be considered to be sharing a car this reduces the amount of time they are on the road. On average you will save about 30% versus having them listed as a principal driver. Make sure that you have fewer cars in the household than licensed drivers to take advantage of this.
  2. Assign your teenage driver to a beat up, old car rather than a new vehicle. If the value of the vehicle is low enough you can drop the collision coverage and just have liability which should save you on average about 30%.
  3. Get your children involved at school.  Grades matter more than you realize. If your teen averages a B or better many insurance companies will offer good student discounts. Talk to your agent.
  4. As mentioned earlier, teach them to be a safe driver. Once the have been driving for 3 years with a clean record you should see a drop in rates.
  5. If they are going to college that is over a 100 miles away and do not bring a car with them ask your agent for a distant student discount. Your child will still be insured to drive if they borrow somebody’s car at college and still be able to drive when they come home to visit. This will save an average of 70% to 80%.

It is a big step in having your teen take the wheel, just remember that there are steps that you can take as parents to make the transition as painless as possible. Try to follow the tips above and hopefully when you add your teen to your Michigan no fault insurance policy you will not break the bank!

Don’t worry low Michigan car insurance is still available despite your child’s reaching sweet 16.

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