Special Report for Parents of Teen Drivers
For many parents, having a new driver in the house can be nerve wrecking. Of course, you worry about their safety. Every parent does.
Now that you’ve taken all of the precautions possible to ensure your child drives safe, it’s time to learn How You Can Avoid Paying Outrageous Insurance Rates and Protect Your Family’s Future From a Lawsuit – a lawsuit that can devastate your family’s financial situation for years!
In this report, I am going to share with you secrets that the majority of people in the insurance industry will never want you to know. That includes other agents, claims adjusters, and especially, the insurance company executives themselves.
You are going to learn the most closely held secrets of the insurance industry!
Why are these secrets so closely guarded from the public? Because, if every consumer knew them, it would cost the insurance companies dearly.
Why am I so willing to pass these secrets on to you? Because I can, it’s good for you, and it’s good for my business.
You see, I don’t work for an insurance company. I am not an employee that has to do what an employer (the insurance company) tells me to do. I am a business owner that works for my clients – not one single company that makes me keep my mouth shut.
My clients benefit greatly by knowing the entire truth about this business. They understand what their rights are and they learn the best ways to get the most coverage for the least amount of money.
Having the freedom to give my clients 100% loyalty and truly looking out for them has helped my business is a number of ways- most importantly is that my clients trust me and are extremely loyal to me. My clients stay with me for years and even want me to help the people closest to them like their own family and friends.
OK, let’s get into why you’re reading this report.
The 7 Costly Mistakes Parents Make When Buying Insurance For Teen Drivers
Let’s start at #7 and work our way to the most important…
Costly Mistake #7
Carrying low deductibles- Your “deductible” is the amount you pay when you make a claim before your insurance “kicks in”. In other words, if you have a $1,000 claim and a $250 deductible, you pay the first $250 and your insurance company pays the next $750.
The disadvantage of raising your deductible is that when you make a claim, you’ll pay more. The advantage of raising your deductible is that your premium will go down, sometimes as much as 15% to 30% on your collision and comprehensive insurance.
Since the rates for young drivers are higher, the savings for higher deductibles are higher too. Usually, you can save enough in a short time to cover a higher deductible if you have a claim.
So, think about increasing your deductibles- especially for the car your teen drives!
Costly Mistake #6
Not taking advantage of ALL discounts- Insurance companies reward drivers that they think are good risks with significant discounts. Here are some common discounts you need to look or:
• Safe Driver discount
• Good Payer discount
• Automatic seatbelts discount
• Airbag discount
• 55 & Retired discount
• Good Student or @school discount
• Multi-policy discount (more on this later)
Not all insurance companies offer all of these discounts. You need to find a company that does. Not taking advantage of these discounts could cost you 40% or more!
Costly Mistake #5
Place the young driver on a separate policy- This is usually one of the first options many parents consider. They think if they buy a separate policy for their teen driver, the rates for their other cars won’t go up.
While that part may be true, the rate for the teen driver’s policy goes way up for two reasons. First, there won’t be a multi-policy discount for the single car on the teen’s policy and second, you will have to buy a policy from a high-risk insurer. “High-risk” insurance companies charge rates that are more than double of a standard company.
It can cost you much more than higher rates by placing your teen on a separate policy!
The most dangerous problem insuring your teen with a high-risk insurance company is that you can’t buy limits higher than the state minimums, usually. The liability limits offered by these companies are usually no higher than 50,000 per person, 100,000 per accident and 25,000 for property damage.
Some parents think that’s fine- that they will only sue their child’s insurance company if there’s a big claim. Wrong- a good attorney will go after the parents too. As long as the child is living in the parent’s home or is a dependent, any good attorney will drag you into the lawsuit.
The smartest way to insure your young driver is too insure them on your policy with the highest liability limits you can get.
Costly Mistake #4
Insuring your home and cars with two different agents. When you split up your home and car insurance with two different agents, you’re most likely paying too much.
Insurance companies make more money when you insure everything with them. That is why they offer such big discounts for multiple policies. They know that if you have more than one policy with them, you’re likely to stay with them longer. Which is fine, as long as you are saving money and getting good service. Right?
The problem with this is how do you know that you are really saving money? If you have a good relationship with your local agent, you’ll know if they are concerned about offering you the best rate by how often they ask you to come in for policy reviews. If your agent invites you to pop into the office and review your policy for discounts to make sure you are paying th best possible price for your insurance, you’ll know they are trying to save you as much as possible – all the time.
Another great benefit to using a local agent is that in rare cases, you may not want to combine your insurance with one company. Good, trust-worthy local agents will still offer to review those other policies that aren’t with them to make sure you are covered properly and help you decide if you are getting all the discounts on that one, too – even if it’s with another company.
Costly Mistake #3
Not taking advantage of your good credit rating- Here’s a very little known secret that can save you thousands for years to come.
Insurance companies have been using credit ratings to underwrite premiums for decades now. They know that if someone is responsible enough to have good credit, they are usually more responsible drivers. So, they offer lower rates to these customers.
You can be rewarded for your good credit with special low rates for your teen driver too!
Did you know that if you have good credit, there is one insurance company that can give extra low rates for your teen drivers too? That’s right. If you as a parent have good credit, they will give you special rates for your teen driver. They figure if parents have good credit and are responsible, the young driver will most likely be responsible too.
To find out how much you can save because of your good credit, call my office.
Costly Mistake #2
Lower Liability Limits to Save Money- This mistake can cause you financial disaster!
Many times parents will cut back their liability limits just to save a few bucks- thinking nothing will happen. However, teen drivers are five times more likely to get into an accident than an experienced driver, and the cost of a teen drivers claim is typically three to five times higher.
The smartest decision a parent can make is to increase the liability limits to at least 250/500/100 and add a million dollar liability umbrella. This is the cheapest way to get great coverage. You can do this and still save money.
By following all of the advice I have given you in this report, you can get quality coverage and still save money!
The # 1 Most Costly Mistake Parents Make When Insuring Their Teen Driver
Using an insurance company employee as an agent- Don’t trust your hard earned dollars with someone who’s not an expert in Home and Auto insurance. This agent isn’t interested in your protection or saving you money. Their loyalty rests with their ability to sell you a one-size-fits-all policy that won’t protect you when you need it.
You need an authority – an agent that is knowledgeable enough to understand the inner workings of policies, and that listens to you to address your true needs. The authority in your area for home and auto insurance will be easy to find. When you call to get a quote, if they ask you for your name, rank, and serial number – they are usually just doing the minimum work necessary to get you the lowest price, one-size-fits-all policy. These are the majority of insurance companies and agents out there with their name on a shingle.
When you find someone that wants to talk to you about your financial security, the safety of your teen driver, the discounts you can qualify for and the strategies you can use to help you control your rates while you have teen drivers – that’s the agent you want to do business with. That’s the agent that offers the best value.
The only insurance agent that can truly look out for your best interests is an authority, an expert. These agents will work for you and will go to bat for you- especially when you have a claim.
Insurance is a very technical business. Policies, coverages, endorsements, exclusions. I’ve studied the details: auto insurance companies with the best rates, the most discounts and the best claims service.
If you want an agent that is an expert in family protection- understanding the insurance needs of family’s with teen drivers, works for YOU- not an insurance company and will work diligently to deliver you the best protection at the lowest cost, call my office for an instant quote on your coverage.
Wishing you and your family great happiness, health, and prosperity!
Erik Wells All American Agencies