Young Driver Insurance: Suggestions and Advice

When teens just graduate high school, they are looking for a sense of independence. Whether this means living away from home, going to college out-of-town, working a new job, or driving a car, it is important to stay connected with your family!

According to “Insurance Journal”, it is important to remain under your parent’s insurance policies (for most states in America) until you consider living away from homeFor financial stability and long-term insurance coverage, consistent communication with family, friends, and co-workers is everything. for at least a year. Auto insurance in particular saves much more money when insured under your parents.

On average, 18-yr olds pay 18% more for car insurance if they sign up for an individual policy as opposed to remaining under their parent’s policies. This number varies by states, so the percent change could potentially be worse. Only in Arizona, Hawaii, and Illinois it is cheaper to establish insurance policies independent from your parents after age 19.

Since teen drivers are known to be higher risk on the road (especially those just getting their licenses and learning to drive), getting individual auto policies already add to the high cost of insurance a teen driver. Insurance journal states that parents with an 18-yr old on their policy pay an average of 77% more than they would without the teen. This number is certainly high, but would be much higher if the teen was independently insured.

The bottom line for investing in insurance comes with experience. Young drivers have a very limited track record, not much credit history and therefore it is harder for the insuring auto company to establish a foundation of trust and credibleness for the driver. As a teen driver ages and develops his driving ability, his premium lowers (assuming one keeps a clean driving record), and bottoms out after age 24.

So our advice from Magnolia Insurance is to stay connected with your family! For financial stability and long-term insurance coverage, consistent communication with family, friends, and co-workers is everything. Besides, there is nothing like a weekend family getaway or game night. If you go to college out-of-state, it only takes ~5-10 minutes to call or text home.

When you are ready to move out from home, graduate from college, and/or live independently on your own finances, then it is important to look at independent insurance. We will discuss this more in the next couple blog posts!

Source: http://www.insurancejournal.com/news/national/2015/08/10/378000.htm

How do you think we are doing? Please let us know by contacting us at Magnolia Insurance Agency.

Sincerely,

Magnolia Insurance

magnoliainsurance@comcast.net | (206) 284-4886

3424 W. McGraw St.

Seattle, WA 98199

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Transitioning: What is Insurance all about?

When the thought of insurance runs through our mind, most of us think of it as a long whirlwind to go down. Insurance to many is viewed as a maze– once you get in, you will not know how to get out. In reality, Insurance behaves in the opposite fashion– it is supposed to work with your lifestyle.

As one advances in their job opportunity and acquires more assets, they often have to expand their insurance policies. For example, when one graduates college, they are often not as economically stable, and simply cannot afford large amounts of insurance. From this conclusion, we can infer that their most important assets – car and health, are top priorities. In addition, most college grads prefer to live away from home, and need to rent an apartment or living space. From driving, to living, to basic health, one will only need auto insurance (basic coverage), health insurance (in case health concerns arise), and renters insurance (to cover assets in rented condo, apt., etc.). When one is able to afford a home, they can look into homeowner’s insurance and drop the renter’s insurance. Insurance is a process that adjusts accordingly with your life, and it is important that you stay up to date about the right insurance by talking with your insurance agent.

The problem with current insurance (in America) is that it is not depicted as a simple process. Moreover, large insurance companies do not make the insurance experience understandable to their clients; they only gain interest by their special deals and offers. In reality, clients don’t know what they are getting their hands into– they do not get proper knowledge from multiple standpoints about the coverage of their insurance policy. Many clients are so uninformed about insurance that they may be paying too much for their premiums without even knowing about it!

This problem brings us to the importance of sticking with a local, personalized agency. By talking with an agent (especially by going into the agency itself), you can obtain a much better understanding of insurance, what certain insurance policies offer, and what you are gaining and missing. Agents help you find the best quality deals that are suitable to you and your needs, whether it means finding an inexpensive policy, a large coverage policy, or something in between. Either way, insurance agents really try to get to know you, and will go out of their way to be kind, respectful, trustworthy, friendly, and knowledgeable.

At Magnolia Insurance, we warmly welcome you to come into the agency any time, just to review your policies, know what each policy covers, stay updated on the news, or just talk with us! We often supply complimentary coffee and pastries– you can stay updated on these social events by finding us on Facebook and Google Plus.

If you have any other questions or comments, you can always contact us at Magnolia Insurance Agency.

Sincerely,

Magnolia Insurance

magnoliainsurance@comcast.net | (206) 284-4886

3424 W. McGraw St.

Seattle, WA 98199