Now that your child is old enough to drive, the need for car insurance coverage has arisen. Your goal is to help your son or daughter lock in the best possible terms. The best insurance plan will serve them well all the way through college. Here are three things you need to keep in mind while shopping around.
Many parents automatically add their kids to their insurance plans rather than purchase stand-alone plans. That works fine as long as the child remains in the home. It may not be the best approach once the child goes to college and no longer lives at the same place.
For college-bound students, remember that the insurance provider will take into consideration the location where the car will be kept. That would likely be on campus or near some sort of off-campus housing. In this scenario, it may cost less to go with a stand-alone policy. The only way to know for sure is to talk with one of the Toronto insurance brokers and obtain a quote.
While it's reasonable to expect a higher premium until the student reaches the age of 25, it never hurts to see who offers the most benefits for the lowest cost. Obtain a quote from the same company that currently provides the auto and home insurance for the family. Use it as a boilerplate for all other comparisons. It will soon become apparent who has the most affordable student rate.
Remember that the task does require comparing apples to apples. Every policy that is considered must provide the same scope of coverage and include similar terms. Be on the lookout for not only what's included, but also what is left out. Even if some minor point of coverage is unlikely to be needed, choosing to go with a plan with a more comprehensive range of benefits makes sense. After all, it only takes one covered incident to justify the cost of the policy.
While managing the cost is important, be aware of all the terms and conditions found in what seems to be the most affordable policy. Along with determining if the quoted benefits are per coverage year or per event, take a close look at the deductibles. What sort of expense would you have to pay out of pocket if a covered event took place? Unless it's possible to set aside funds to cover those amounts, it makes sense to pay a little more and lock in a lower set of deductibles.
Use the purchase of student auto insurance as the change to teach your child the importance of comparison shopping and balancing the need for thrift with the importance of securing a reasonable amount of coverage. By going to a broker and pointing out the pros and cons of different plans, those lessons will be learned and they will serve the student well in the years to come.