Hi all, Kristen here today for Koffee with Kristen I want to talk to you about youthful drivers.
Insurance companies consider anyone under the age of 25 who has a valid driver’s license a “youthful driver.” Unfortunately, adding them to you policy can sometimes be expensive. Some might try to “hide” a driver till they get a ticket or accident to try and save money. Here’s the ugly truth, though, you have a contract with your insurance company and you are obligated by that contract to let the company know if there have been any changes to the drivers in your household. If you don’t say anything you could be at risk of having a claim denied for breach of contract. Breach of Contract + Claim denied = Money out your own pocket.
Now let’s talk about rates for youthful drivers. Youthful drivers are rated higher because they are inexperienced, and with the world of social media and technology today they are also distracted. Now, I realize that this is not the case for everyone but studies show youthful drivers have more tickets and accidents than the rest of the population. Yes, the rates are high but there are a couple of things you can do to save a little money.
- Have your youthful drive a cheaper car; usually people will buy just a liability only vehicle till their children have some experience driving.
- If you want to go with a newer vehicle, call your agent to get quotes so you know which vehicles will be the cheapest. Too many times, clients buy a vehicle without getting quotes and the rates give them Sticker Shock.
- Have your agent re-shop your insurance with all their carriers. The carrier that had the best rate without the youthful driver may be more expensive once you add them.
This is a very hard pill for our clients to swallow, especially when we are already paying Michigan insurance rates, but we have to bring it up to make sure our customers are protected properly. The Dearborn Agency is here to help you, and even if you are not one of our clients, we are happy to answer any questions you may have. And remember, Breach of Contract + Claim denied = Money out of your own pocket.
It was nice talking to you folks again. Until next time this is Kristen Juracek signing off!