Car Insurance is Expensive for Teens - From Over-Charging to Hidden Risks

Kids cost a lot of money. Not only do they need clothing and shelter, but they have that annoying habit of eating - a lot. Throw in toys, video games, ballet lessons, and family counseling, and you've already spent a bundle. But when Junior gets that acceptance letter to an elite private university, now you're really in trouble. Or are you?

Another Hidden Cost of Parenting - Higher Car Insurance Rates

The first-time parents of teenagers are in for a lot of surprises, not the least of which is a sudden spike in their car insurance rates. Even if your child is only listed as an "occasional" driver of the family Pinto, you can expect a major rate increase. If your son or daughter is the "primary" driver of a car of their own, then you are really in for a hurting.

But when your child goes away to college, he is no longer a threat to your insurance company. You can just sit back and collect the savings, right? Wrong!

You Have to Be Proactive to Realize Your Savings

Your car insurance agent might be a swell guy, but he's no dummy -he's not going to drop your car insurance rates if you don't even ask him to! Believe it or not, insurance industry insiders say that as many as half of all parents who could save, don't. Why? Either they don't know about the potential savings, or they're literally too lazy to pick up the phone and let their insurer know that Junior has left the nest. It's like the popular car insurance commercial says - "If you could save a lot of money by standing up, wouldn't you?" Apparently, some people wouldn't.

Of course, while you're at it, it would be in your best interest to take your proactivity to the next step and do some online comparison shopping for the best car insurance rates. With the internet and sites like carinsurancerates.com, it's never been easier.

Tips for Maximizing Your Savings

In order to fully realize your savings, your child must leave his or her car at home. If your progeny have no wheels at school, they pose very little risk to your insurance company. If your child doesn't have a car of his/her own, then insist to your insurer that they will only drive your least expensive (and/or safest) vehicle when they come home to visit (aka laundry runs). Remove your kid from "primary" driver to "occasional" driver on the appropriate vehicle.

College tuition averages upwards of $20,000 per year. That's the bad news. The good news is that you can save as much as $3,000 per year when your child is taken off your car insurance policy. You can save even more if you're proactive in looking for the best rates. Pass this lesson along to your son or daughter because blessedly soon, they will be paying for their own car insurance. Then your real savings can commence!