Crucial Facts You Should Know About Car Insurance When Your Teenager Has a Suspended License
The day your son or daughter earned a driver's license was probably one of the happiest days of their life. Unfortunately, many teens might not be ready for that privilege, and as the result of a few bad choices, he or she could have their right to drive withdrawn. When that happens, it is likely that their insurance policy will soon be canceled. If you are like many parents who insure their young drivers on a shared policy, your insured status and the cost of maintaining your coverage could change. Therefore, it is a good idea to be aware of the following information so that you can protect yourself and your insurance from being negatively impacted when your teenager loses their license.
Your Child's Driving Mistakes Can Cause Everyone on the Policy to Be Classified As High Risk
It is important to note that while insuring your teenage driver on your policy when they first got a license undoubtedly was less expensive than insuring them on their own, doing so was not without risk. Specifically, your premiums are now likely to increase because of your teen's driving record, or the entire policy could be canceled. Since neither of those options are likely to be well received, it is important to know that there is a way to protect your policy, as explained below.
You Can Minimize the Financial Burden Associated with Your Teenager's Suspended Driving Privileges
Once you understand how difficult it can be to maintain automobile insurance when one of the covered drivers can no longer drive legally, it only makes sense that it is essential to minimize your own car-insurance costs. One way to do this is to remove your teenager from your policy as soon as you discover the status of their license. However, simply removing them from the policy may not be sufficient, as you could also need to speak with your insurance company about obtaining an exclusion endorsement for the policy.
By doing so, you will be attesting to the insurance company that the teenager will never again drive that vehicle without first obtaining a valid license. If they do and are in an accident or are ticketed by law enforcement, there would be no insurance coverage of the vehicle, and appropriate legal or civil action may be taken. However, there is a good chance that you might be able to keep your existing policy with reasonable rates, although you should speak with your insurance company to verify that you can protect your policy.
In conclusion, car insurance is required throughout most of the United States, and maintaining it when one of the persons listed on the policy has had their license suspended can be challenging. As a result, it will behoove you to consider the information provided above so that you can make the most appropriate choices for your car insurance at this difficult time.
Talk to companies such as Northeast Insurance Agency to compare rates.
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