Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/40418
you're covered Handing Over the Keys How to insure your teenage driver by Scott Messenger I F YOU HAVE KIDS, YOU'VE LIKELY covered thousands of kilometres and spent countless hours behind the wheel, picking up, dropping off and ever on call as their most convenient means of reaching point B. So when the road-test examiner grants your teenager a passing grade, it's like a day of independence – for parents and kids alike. You're free at last; but when it comes to insurance, at what cost? Karen McDougall knows the situation well. "There are some very strong emotions around this," says the insurance agency manager at AMA Calgary Crowfoot. "Parents come in with a look of fear because they're adding little Jimmy to a policy – and little Jimmy has a grin from ear to ear because he's fi nally going to get to drive." There are a few simple ways for parents to gain peace of mind – and save – when insuring a new driver. The fi rst is instruction from a driver-training program approved by Alberta Transportation; for example, AMA Driver Education. Teens learn the rules of the road from a professional and, because of that, earn the equivalent of two years of experience on their new insurance policy, lowering premiums. Most important, professional instruction tends to make better drivers and can lower the risk of a claim. For parents, that's espe- cially important if they're adding a teen to their policy as an occasional driver. If a collision were to occur with the teen behind the wheel, "the claim would be paid out on the par- ents' policy if the driver were at fault," McDougall explains. That means mom and dad would foot the bill and incur higher premiums as a result (though the claim would transfer when the teen eventually had his or her own policy). As well, says McDougall, "mom and dad could be named in a lawsuit as the owner of the vehicle." Another option is to buy teens their own insurance policy – on their own vehi- iStock Professional instruction tends to make better drivers and can lower the risk of a claim. cle. Putting a vehicle in a teen's name isn't so much a matter of spoiling him or her, says McDougall, as it is about making the teen responsible and fully accountable. And that way, mom and dad's financial assets aren't involved. But if parents do opt to share their vehicle, there are still ways to save. While third party liability and accident benefi ts insurance are mandatory, collision and comprehensive insur- ance are not. "If mom and dad buy a luxury car, for example, they're going to want to [fully] cover it," says McDougall. "If it's an older vehicle, perhaps not so much." A higher deductible will lower premiums, too. Also, teens can be periodically removed from a policy. By letting an agent know when the kids are away for an extended period, such as a school semester abroad, "you'll actually save quite a bit of money." Ultimately, though, the best way to save on policies for teenaged drivers is to ensure they know what they're getting into. When So your teen is driving: the right policy can ease the worry and save your family money. the time comes, says McDougall, bring your kids to the insurance agency, where an agent can explain the "dollars and cents" of driving. Those feelings of concern about adding a new driver to your policy are expected, but as McDougall points out, "they're going to drive anyway, so you're going to want to protect yourself" – and to enjoy that new- found freedom. It might come with a price, but it needn't be beyond reach. AMA MEMBERS SAVE MORE Protect yourself, your teen and your vehicle with auto insurance from AMA. Get a quote online or call an agent for information. 1-800-615-5897; AMAInsurance.ca/Auto AMA Driver Education is offering gradu- ates of the New Driver Education pro- gram a coupon worth $100 toward an AMA auto insurance policy. ama.ab.ca/NewDrivers WESTWORLD >> SEPTEMBER 2011 55