Kids Car Insurance
POSTED: Monday, June 13, 2011 - 2:16pm
UPDATED: Thursday, June 16, 2011 - 4:48am
New drivers face the reality of the high cost of car insurance.
High school and college graduates are hitting the car lots this time of year with their parents not far behind. This is their car shopping season, but the real sticker shock doesn't always come from the car dealer but from the insurance agent.
There are so many different cars and so many different ways to insure them. But one thing is for sure if there is a kid behind the wheel, it will cost you more.
Driver Jeanelyn Yang says "one little bumper, I think my friend's doubled and it went up $200-$300 every month. So it is pretty bad."
But there are ways to cut down on those costs, a lot depends on what kind of car your son or daughter is driving.
Pete Moraga of the CA Insurance Information Network says "you want to get a sedan, a very sedate sedan, hopefully a four door because those have a better safety record. And when it comes to actual claims on the car we're seeing that sedans also have less claims."
Pete Moraga with the Insurance Information Network says if the car is expensive to fix you can bet your insurance rates will also be higher.
Pete Moraga says "so what you want to do is you want to add them to your policy but you also want to restrict them to the lowest cost car."
But who picks the car for a high school or college graduate? That depends.
Mark Simmons of Carmax says "the child has had the final say or the parents have had the final say, I guess the parents because they're writing that check really have the final say."
Traditionally boys have paid more than girls for car insurance, but times are changing. And today girls are shelling out more and more.
Pete Moraga says "so they're getting close to the boys when it comes to risky behavior, when it comes to driving at excessive speeds and taking risks."
Risks like talking on the phone and texting. Now there are always good driver discounts but bare in mind, SUV's and muscle cars often cost more to insure.
Pete Moraga says "and what we're suggesting to parents is that they think of safety before sexy. The student is going to want fast and the furious, we're saying get slow and safe."
Jeanelyn says "I think that if you start driving, as long as you are good about it, I think it should be lower. But when you do get in an accident I see a reason to increase it, but it is very high."