Benefits Of Graduating From Their Parental Car Insurance Coverage
Most people start driving while covered with the insurance policy of their parents while others choose solo coverage right from the start. Those who enjoy their parent's coverage stand to enjoy some benefits when they finally graduate to their own coverage. Here are three examples of those benefits:
It Gives You an Insurance History
Insurance companies are wary of those who are just buying their first coverage. They don't know your insurance history, they don't know how often you make claims, and they don't know whether you have been driving without insurance coverage or not. Being on your parent's insurance coverage gives you a valuable insurance coverage history that your insurer can use to gauge your risk. This will translate to reasonable rates, at least more reasonable than the rates commanded by a person without an insurance history.
It Shows You Are Experienced
One of the disadvantages of buying insurance coverage for the first time is that it is basically the same as driving for the first time. After all, no one is allowed to drive without insurance coverage. Unfortunately, first-time drivers are prone to mistakes and accidents on the road, and insurance companies protect themselves from inexperienced driver mistakes by raising the rates a bit. However, if you have been driving under your parent's coverage for some time, it shows that you are experienced and may enjoy good rates.
The Insurer May Reward You with Some Discounts
Lastly, your insurance company may also reward you with some discounts when you graduate from your parent's insurance coverage. Whether or not you get a discount, plus the type of discount you may get, depends on your insurance company. Here are some forms of discounts insurance companies have been known to issue in such circumstances:
Good Driving Record
You may enjoy this discount if you have been driving under your parent's policy for some time (say three years or so) without an incident.
Legacy
Legacy discounts are meant for those who have been driving with their parent's insurance coverage and have elected to get their own coverage from the same insurance company.
As you can see, you stand to gain a lot by combining your insurance coverage with your parents for some time before graduating to your own coverage. Don't forget that you will also be enjoying good rates, better than you are likely to get on your solo coverage, while under your parent's policy. When the time comes for you to graduate to your own coverage, you can maximize your benefits by buying it from your parent's insurance company.
Get an insurance quote for more information and assistance.
