New Teen Drivers: How to Keep the Cost of Insurance Down

Your teen has just passed their drivers test. Now you face the unenviable task of trying to find affordable car insurance for him or her. We’ve all heard the horror stories. Your friends and co-workers will warn you about the hundreds and even thousands of dollars they’re spending to let their kids drive. But it doesn’t have to be this way!

With a little bit of knowledge and planning you can drastically cut your costs.  Here’s what you need to know:

1. Buy an older car for cash. 

This probably isn’t what your teenager was hoping to get, but it’s the best way to keep your insurance manageable.  By "older", we don't mean a beat-up old clunker, just a used car that has been been cared for well. Check the various car checker websites to make sure it hasn't been in an accident or had any other bad mechanical issues. The seller should provide any major maintenance work done on the car, and when it was completed, in the form of receipts or work orders. If they can't, walk away from it.  If you pay cash and avoid a car loan, then you can choose more reasonable limits then the lending institution will demand.

2. Take an approved defensive driver training course.  

Certified defensive driver training courses will qualify your teenager for additional discounts! This is not the same as a school-sponsored drivers education course or one of many private drivers ed schools out there, which are mandatory in Washington if your teen wants to get their license before turning 18. Defensive driver training courses are for all ages and typically a one-day course that concentrates on defensive driving and "watching out for the other guy". After successful completion, get a copy from the course instructor and bring it in when you add your new driver.

3. Get good grades.

Good grades reflect a more responsible driver.  Drop off a copy of your teenager’s latest report card to see if they qualify for a good student discount.

4. Include your teen as an additional driver on your policy.

Don't take out a separate policy for them, as they will be considered ‘high risk’ and pay extremely high rates because of it. Adding them to your policy will certainly cause it to go up, but considerably less than an inexperienced driver having his or her own policy. Most responsibly-insured parents will have a solid insurance history which will qualify for a big discount, something a new driver will not have.

How do you pay this big premium increase? If your teen has a job, have them pay the additional portion of the premium. Then they have a stake in driving responsibly, and If they get in an accident and rates increase, then they are on the hook for the additional cost. This teaches them a valuable life lesson about being responsible and owning up to their mistakes.

Yes, young drivers will raise your insurance costs, but it doesn’t have to be terrible.  Schedule an appointment to sit down and discuss your policy with your SAV-ON agent.  We’ll review all of your options and any discounts you qualify for. Call us at 888-867-2866 today.

Car Insurance: Why Liability Protection Is So Important

Have you ever looked at your insurance policy and wondered just exactly what it is you are paying for?
 

In Washington state, drivers are legally required to carry liability insurance, unless you drive a motorcycle, motor-driven cycle or a "horseless carriage over 40 years old" (seriously; look it up).  But many people don’t really understand what that means or how it works. 

In simple terms, liability insurance pays to fix damage that you cause to someone else. 

On your auto insurance policy, this is split into three pieces.  Here is an example:

Bodily Injury:  50/100
Personal Property: 50

Let’s say that this was your coverage amount and you hit another car in an accident.  Your insurance would pay up to $50,000 per person for injuries up to a total cap of $100,000.  And it would pay up to $50,000 in property damage to fix the other car. 

Remember, liability only covers the person that you hit.  It doesn’t cover your vehicle or anyone inside your car. 

There are many different amounts of liability coverage.  We work directly with our clients to determine how much you need.  This will vary based on factors like how many assets you have, your income, and home value. 

Not having enough liability insurance is one of the biggest financial mistakes you can make!  Carrying only the Washington state minimum of 25/50/10, could leave you open to a lawsuit.  Think about those cars you’ve seen on the road worth easily over $40,000!  If you don’t have enough property damage coverage, then you are at risk. 

There is also liability coverage on your homeowners or renters insurance.  It pays if someone is injured on your property due to your negligence.  One common example is a dog bite.  This is another time when it’s good to have enough liability insurance!

This is a general overview of liability insurance. If you have further questions about how liability insurance works, or you need help determining the right amount of coverage for your family, give us a call at 888-867-2866 for a no-obligation review and quote. 

U.S. Education Secretary: Later School Start Times Make Better Students, Safer Drivers

Research has found that students forced to start school in the early morning aren't at their best, and don't do as well on tests. They also are not as alert, and the result is an increase in at-fault automobile accidents.

"Teen brains have a different biology," states Kyla Wahlstrom, director of the University of Minnesota's Center for Applied Research and Education Improvement. She has studied teens' sleep cycles and learning for the past 17 years, and has concluded that a rested student is a better student. Things such as absenteeism, depression, obesity, drop-out rates and even auto accidents are reduced when students get a good night's sleep.

Recently, Education Secretary Arne Duncan endorsed a later start to the school day, suggesting that a later start to the school day could help teenagers be alert and function better in class. He said that school districts would still be free to set their own start times, but that research has proven that a later start means better students.

While most medical professionals suggest that students get between 8.5 and 9.5 hours of sleep each night, The Fairfax County Public Schools in Virginia surveyed students and found two-thirds of them were getting seven hours of less each night.

The problem is that school start times are controlled by administrators who are concerned about bus schedules and after-school activities, which would be pushed back by the later times.

"So, often we design school systems that work for adults and not for kids," Duncan told NPR's "The Diane Rehm Show."

Drowsy teens become drowsy drivers, and then translates to an increase in traffic accidents, too.

"Fifty years ago we learned that hungry kids don't do well in school. Now we know that sleepy children don't do well in school,"said Joseph Buckhalt, a distinguished professor at Auburn University's College of Education. "Now we have to do something about it."

Teen Drivers with Teen Passengers at Greater Risk

A recent study conducted by the American Automobile Association (AAA) found that the more teen passengers a teen driver had in the car, the riskier the driving and the greater potential for them to be involved in a serious accident.

Vehicle crashes are the leading cause of death for teenagers, and parents need to be aware of the potential for their teen to be hurt -- or even killed -- in a car full of young people, whether they're driving or not.

Speeding

The AAA Foundation found that speeding among teens alone in their car occurred 30% of the time. This rate increased to 44% when the teen driver had two teen passengers, and 48% with three or more teens in the vehicle.


Late-Night Driving

Also, teens who got behind the wheel late at night (from 11 p.m. to 5 a.m.) increased from only 17% when they were alone, to 22 percent with two teen passengers, and to 28% with three or more teens in the car with the driver. Numerious studies have shown that driving at night is considerably more dangerous than driving during daylight hours.

Alcohol

Alcohol also was more prevalent with other teens in the car. When a teen was driving alone, alcoholic beverages were present 13% of the time, but with two teen passengers, the rate went up to 17%, and 18% with three or more passengers under 20 years old.

"Mixing young drivers with teen passengers can have dangerous consequences," says Dave Overstreet, public affairs director for AAA Washington. "AAA urges parents to set and consistently enforce family rules that limit newly licensed teens from driving with young passengers."

Recent legislation in numerous states, including Washington, has restricted new teen drivers from carrying passengers under 20 years old. This, combined with more active parental control, will hopefully result in reduced teen accidents and fatalities.

Source: AAA of Washington

New 'Good Samaritan' Law Protects Underage Drinkers

Washington Governor Jay Inslee has signed legislation that protects underage drinkers who call 911 for help by removing the fear of prosecution.

Washington joins 11 other states who have passed the so-called alcohol-related "Good Samaritan" laws. Colorado was the first state to approve the legislation in 2005. Six other states are currently working on passing a version of the policy.

Binge drinking is popular with underage kids.

Recent alcohol-related deaths are the impetus for the state legislation. Kenny Hummel, an 18-year-old Washington State University student, died in October 2012 after being found comatose in a WSU dorm room. His blood alcohol level was measured at .4 percent, which is five times the legal limit. His parents helped push the measure through the legislature, which offers protection from prosecution to underage drinkers who are in need of medical assistance.

Critics contend that passing this law only encourages underage drinking, by taking away the threat of prosecution to minors illegally drinking alcohol. Advocates, however, counter that it's better to allow minors who have been involved in binge drinking to get the medical attention they need, rather than dying from alcohol poisoning.

Rep. Marko Liias, D-Edmonds, who sponsored the legislation, stressed that underage drinking is not being encouraged, but the goal was to prevent unnecessary deaths from alcohol poisoning.  "We want young people to know that when they call 911, the only thing that's going to come is help," he said. "Not trouble."


The legislation was supported by the Liquor Control Board, the Washington Association for Substance Abuse and Violence Prevention and the Washington Association of Sheriffs and Police Chiefs, among others.

Teen Drivers Involved in Fatal Crashes Often Take Others With Them

Teenage drivers are involved in a considerably higher rate of accidents than older drivers due to a number of factors, most notably their inexperience, speeding and being distracted while driving. While that growing statistic is alarming, what is tragic is the number of young lives cut short by the fatal accidents they are involved in. Even more devastating is the fact that frequently these young drivers take others with them when they are involved in a deadly vehicle crash.

The most recent figures available from the Institute of Highway Safety reflect this, and point to the fact that restricting passengers in teen driver's cars will help lower the death toll on our highways.

In 2008, Washington state had 34 drivers aged 15 to 20-years-old killed in auto accidents. But, also killed in those accidents were 21 passengers who were in the car, 17 occupants of other vehicles involved in the crash, and five people who weren't even in a car. That's 77 lives that were lost in one year involving teenage drivers in our state!

And Washington state isn't even one of the worst states for fatal teen accidents, ranking only 24th in 2008. Texas gets that grim distinction, with a total of 650 people dying in accidents that year involving teenage drivers. California was a close second, with 593 deaths.

In the United States in 2008, 6,428 people were killed in accidents involving teen drivers, with 2,739 of those young drivers dying in the accidents.

With those ghastly statistics in mind, legislators around the country have tightened restrictions on young drivers in an attempt to stem the carnage on U.S. highways.

For a complete list, by state, click here.

Source: National Institute of Highway Safety

Vehicle Service: What You Don't Know Can Cost You!

Today's automobiles are complex, computer-designed machines that need to be serviced periodically to keep them running dependably. But, the technological advances in car manufacturing have altered how much -- and how often -- you need to service your car. Some mechanics don't want you to know this, since it costs them money.

Years ago, vehicles required more frequent maintenance to keep them running well. The latest vehicles have been designed to eliminate much of this. In fact, some of the maintenance performed on cars by unscrupulous mechanics can actually harm your car!

Do It Yourself and Save Money

Even if you don't know a piston from a steering wheel, there are a number of simple services you can do yourself, rather than paying a service facility to do, since they'll charge you twice as much for the part as an auto store will. Things like windshield wipers, air filters and tail lights can be purchased and installed in a few minutes with just a screwdriver.

Many service facilities will insist that you need new wipers or an air filter. The fact is that air filters will usually last at least 20,000 miles and wiper blades have a life-span of from one to two years. Changing them more often is just throwing money away! Tail lights can be replaced by removing a couple of screws. (Although headlights can be replaced, too, they need to be adjusted properly after installation for safety and proper illumination at night. This task might be better left to a professional.)

Engine Service

Most mechanics want you to replace engine oil every 3,000 miles, but that's not necessary with today's automobiles. Manufacturers currently recommend oil changes every 5,000 to 8,000 miles. Dirty oil is also an environmental hazard, so not only do you waste money, but if you change oil too frequently you're affecting the environment. That oil has to be disposed of, and not all mechanics do it properly.

Many service facilities will insist that you get your transmission "flushed" periodically. In the past, this was necessary to get rid of impurities that built up in the fluid. Now manufacturers do not recommend a transmission flush, since it could actually harm your car by putting too much pressure on its system.

Replacement Parts

If your car isn't running correctly, and you do need service, be wary of fast-talking mechanics that tell you that a big repair is necessary. Dishonest mechanics, aware that many people aren't well-versed in car maintenance, will agree to a repair that is either not needed, or is much too extensive for the problem. There have been documented instances where the mechanic has simply put the same part back in the car since there was nothing wrong with it. Before any service is performed, ask the mechanic to show you what the problem is, and always ask to see the part that was replaced.

Know Your Car

The unfortunate reality is that mechanics make money off your mechanical ignorance. While most vehicle service facilities are not dishonest, it’s easy for them to make a quick buck from what you don’t know. Your best bet is to learn about your car as much as possible to avoid the cost of a dishonest mechanic.

Source: drivesteady.com