It seems like a “rite of passage” from childhood into becoming an adult. Your little boy or girl turns 16 and MUST have a car because everyone in school has one. Teens crave the freedom away from Mom and Dad, acceptance by their peers and the ability to show off (with the right vehicle of course!).
Because of the high death toll involved with teen driving, many provinces have already enacting Graduated Driver Licensing (GDL) laws.
Graduated Driver Licensing introduces teenage drivers to the road in stages, over an extended period of time and in an environment that minimizes risk. First is the Permit Phase where the teen practices with supervision. Next is the Provisional or Probationary Phase where the teen is allowed independent driving with restrictions. Only after successfully completing both phases will the teen be granted full driving privileges. As your teen learns this new and important skill, practice is very important. As a parent or guardian of a new driver, spend as much time as possible helping to teach your teen good driving habits.
Newfoundland Fraud Laws and Auto Insurance
Insurance statistics show that since the youthful driver is significantly more likely to have an accident than a typical adult driver, there will be a higher premium charged when the youthful driver is added to the parents policy.
There is a temptation then to “forget” to add the new driver to the auto policy or not list the new driver on your renewal questionnaire in order to save money even though the child is driving Mom or Dad’s car. We caution you against this practice. Newfoundland has certain fraud laws in this area that will allow an insurance company to deny a claim in the event the driver is an undisclosed household operator. In addition, the Attorney General has the ability to fine the policy holder in the range of thousands of dollars.
Insurance-Friendly Cars For Teens
The decision is made. You want to buy your son or daughter their first car. It will be in your name and properly added to your policy. But what to buy? You know it’s not only the car model you have to consider. You also have to think about the impact the car will have on your auto insurance.
Insurance companies surcharge youthful operators in three areas:
- Comprehensive (theft)
- Collision (damage caused to the vehicle in an accident
If you choose a vehicle that may be older, and does not require comprehensive or collision (a lower value vehicle) the premium will be considerably less than a newer one which will require full coverage.
Let us assist you in making a good choice for your teen. Contact Crosbie Job Insurance Limited and one of our agents can help you make the right decision when buying that first car for your teenager.