The Perils And Pitfalls Of Adding Drivers To Your Insurance Policy
A multi-driver discount sounds great, but it leaves you with more questions than solutions. You want to save money, but you are worried about how a single accident can affect everyone on the policy. You have good reason to worry, but you are smarter for seeking the information out before you sign several people up. The perils and pitfalls of this decision has the following ramifications and benefits.
Vouching for Other Drivers
When you sign your teens or your elderly parents to your auto insurance policy, you are vouching for their good driving records. Even if they do not have driving records as of yet, or their driving records have a few bumps in the road, you are promising the insurance company that their driving is acceptable enough that you will accept partial responsibility for whatever happens. That is a heavier burden than most people realize, since several accidents in a row could cost you your policy as well as your integrity with the insurance company.
One or More Accidents Increases Premiums
When you have reached an age where your insurance only costs ten to thirty dollars a month, the last thing you want is to backtrack and pay more. However, many parents who add their teens find that that is exactly what they are doing. Inexperienced drivers on your insurance is very costly, even with the multi-driver discount that some insurance companies offer.
Also, adding your parents after they have passed retirement age can have the same effect. The insurance company calculates accident risks based on age and the potential for harm which comes with the infirmities of being older and the inexperience of being younger. If you do not want to pay more, you should consider finding an insurance company that does not participate in these up-charges for additional teen and elderly drivers.
The Benefits of Adding Drivers to Your Policy
Besides getting a discount for each driver you add, you can monitor all of those drivers to see who is doing alright and who should probably purchase their own policy. Additionally, the more good drivers you attach to your policy, the better the discounts get.
Insurance agents will explain to you how much of a discount based on their company's stipulations, and the amounts can vary widely. The dispersal of your savings is different too-- some companies will mail you a check, others will apply a percentage discount to your monthly payments, while a few more will deduct the amount from future payments, allowing you to drive with free insurance.
Need more help? Contact a company like ESI Insurance Agency with any questions you have.