September 2002 http://www.funkyteen.com/driving0902.shtml
I Promise Program
Every
year some 4 million teenagers take to the streets across
and require auto insurance. A parent almost always makes the call to the
insurance agent or broker asks, “How do I get the lowest rate for my new
teen driver and what coverage does he or she need?”
The I Promise Program – teen safe driving initiative,
surveyed insurance
agents and brokers across
are the folks who sell the insurance, know the statistics and talk to
the parents”, says
Program and survey leader. “We thought if we could generate a few replies
some general tips might emerge.”
Direnfeld
was almost overwhelmed by the number of replies, “We not only
learned some general tips but more importantly, that
these agents and
brokers were concerned to keep these young drivers from collisions and
to minimize the financial burden to the family in the event of a collision.”
As
Angie Britton of Love, Douglas & Pope Inc. agency in
put it, "You don't have to be a millionaire to be sued for millions."
Maureen
Ross O'Connell of Ross Insurance Agency in
and adds, “When buying limits you must consider two things - your moral
obligation to someone you injure and how much you can afford. Your teen
driver's best friend can be killed or seriously injured in an automobile
accident as a passenger in her vehicle. If she is responsible for the
accident she will feel much better knowing she has adequate limits on
her policy to assist the family with expenses.”
So,
how much insurance do teens need? Insurers generally agree to get
as much as you can afford and many recommend anywhere from $1 million
to - $5 million in liability. Joe Sesto of Sesto Insurance in Santa Maria,
CA., reminds us that, “US federal highway statistics indicate that 1
of every 5 16-year old males is involved in an accident in their first
year of driving and about 1 of just under 7 female 16-year olds is involved
in an accident in their first year of driving nationally. Those are
approximately
Russian Roulette odds!” So given the likelihood of a claim, make sure
you are covered well.
How
do you get the best rates? Agents and brokers offer these tips:
Attend
an approved driving school. Many insurance companies offer a significant
discount to teens that have attended and passed approved courses. But
remember, first check to make sure the driving school is approved.
Maintain
at least a “B” average or a 3.0 point grade average in school.
Many insurance companies also provide a “Good Student Discount” that
can range anywhere from 5% to 20%. So grades do matter!
Don’t
by your teen a car. But, if you must, purchase a vehicle in good
mechanical order, a four-door model and no less than 5 years old so you
don’t have to add collision insurance to the policy.
The higher the deductible, the lower the premium. When insuring on a parent’s
car and collision insurance is recommended choose the highest deductible
possible.
To
maintain the lowest rates over time, maintain a spotless driving record
and pay for any minor damages yourself. Parents are
recommended to set
limits for teens using the family car, particularly in the first year
of driving and some insurers suggest programs like the I Promise Program
– www.ipromiseprogram.com , to
help them determine rules and maintain accountability.
As Rob Siroishka of Sir's Insurance Agency Ltd. in
it, “Loss prevention = I Promise Program.”
Many
of the Agents and Brokers who responded suggested that parents let
their teen do the shopping around for the insurance policy so they learn
the issues and value of insurance. Some insurers in fact require a meeting
with the new teen driver before they will actually sell them insurance.
Teen drivers are their highest risk category with car crashes as the
leading cause of permanent injury and death in teens across
An Agent or broker may even refuse to sell you insurance if they deem
a teen to be a bad risk.
“We
learned that a number of Agents and Brokers feel a moral obligation
to meet with the teen to make sure they understand the privilege and
responsibility
of driving and I would encourage all parents to visit their insurance
representative before purchasing a policy,” says Direnfeld. “In the end
a good agent or broker making a positive impression on your teen may be
the best insurance of all.”
I Promise Program
20
(905) 628-4847
gary123@sympatico.ca
www.ipromiseprogram.com