Young Drivers: Should I put the Car Registration in Their Name?
November, 01 2021″
Getting a driver’s license is a milestone that comes with many rights and responsibilities. As the parent of a young driver, whether you are filled with excitement or fear and trepidation, you will have many new decisions to make about how to register your child’s car and the best way to approach auto insurance in Niagara.
Registering a vehicle in someone’s name is easy regardless of how old they are. Before deciding to register a car in a new driver’s name, it is helpful to consider the impact that it will have on your car insurance premiums.
We have got some valuable information to help you decide the best time to put a car registration into a child’s name and how to save money on car insurance as you navigate this new phase of life.
Should I Put the Car Registration Into my Young Driver’s Name?
With rare exceptions, it is best to put car registrations in the parents’ names. The biggest reason for not registering a car in a young driver’s name is it puts them in the position of having to get their own car insurance policy. On both accounts, those may be responsibilities your young driver is not quite ready to handle.
Auto insurance in Niagara will also be more expensive when putting a car’s registration into a new driver’s name. They will not be able to qualify for as many discounts as parents or older drivers.
It is generally better to transfer a car’s registration to a young driver when they finish college or move out of your home permanently. While there are no hard-and-fast rules about it, most parents prefer to wait until their young drivers become young adults and they can afford to purchase their own cars.
By that time, hopefully, they have proven that they can manage their own expenses and they are prepared to pay for registration fees, car insurance, maintenance, and car repairs.
One exception to placing the parents’ names on the registration would be to limit a parent’s exposure for a young driver who has a bad driving record or feeling that a young driver is responsible because they have waited until they were older to get their driver’s license for the first time.
How do I Handle the Insurance for a new Driver on my Policy?
While it is an easy decision to put the car registration in your name rather than your child’s name, it is important to understand the many factors that go into setting up car insurance in Niagara for new drivers.
Without a doubt, teen drivers carry more risks for auto insurance companies in Ontario than older drivers. Young drivers are more likely to speed than older drivers, and they often do not leave an adequate distance between them and the cars in front of them.
Speeding and the impulsivity that tends to accompany teen drivers places them at a higher risk than when they get older, and the higher risk will be reflected in higher premiums.
When a new driver gets licensed, call your insurance provider right away to inform them of the exciting news. The agent will need to know the child’s name, birth date, and driver’s license number.
The insurance company will also factor various things into the rate, such as the child’s gender, how often they drive your cars, where they drive, and which car they will be driving most of the time.
The concept behind rating young drivers is that they should take things slowly in the beginning. The more experience and supervision they have, the better drivers they will eventually become.
How can I be Sure I am Getting the Best Insurance Rates for my Young Driver?
Auto insurance discounts for young drivers can help save your budget. Be sure to ask about what discounts you may be able to get for young drivers. Your insurance provider will be happy to review the discounts that you qualify for.
Many additional factors go into car insurance rates, such as the age of the drivers in the household, driving experience, and types of cars. Some cars are safer on the road than others and making a wise choice about car buying could decrease your auto insurance rates in Ontario.
Some auto insurance providers offer discounts for students who are enrolled at a school more than 100 miles away if they do not take the car with them. Insurance companies may also consider discounting your policy if you have more cars than drivers in the household.
Bundling your policies can also save you on your car insurance. It is common for auto insurance companies to offer discounts for insuring multiple cars and having multiple policies with them.
It may also surprise you to learn that insurance providers typically use your credit score as part of your insurance score. The better your credit rating, the lower your insurance premiums will be. The thinking behind that is the more responsible drivers are in life, the more responsible they will be while driving a car.
If the premiums are still too high after adding a young driver to your policy, you still have options.
Consider making some of the following changes to bring the premium down:
- Remove optional coverages such as towing or car rental
- Consider increasing your deductibles
- Shop around with different companies
As a word of caution, it is not always beneficial to change insurance companies. If you have a long stretch of good claims experience and then have more than one accident, your insurance provider may consider your loyalty when deciding whether to renew your auto insurance policy.
Summing Things up for Young Drivers
While you probably wish you could be an invisible passenger every time your new driver gets behind the wheel, at some point, you must allow them to drive solo. You must trust that all the things you have taught them and all the advice you have given them about teen driver safety will come full circle.
As an extra dose of accident prevention, you might consider encouraging your young driver to participate in National Teen Driver Safety Week and ask them to sign a parent/teen driving agreement that outlines the rules they agree to follow each time they start the engine.
For more information about getting your new drivers ready for responsible driving or to get a quote, contact one of our associates at Duliban Insurance Brokers at 1-855-DULIBAN.