Kids grow up so fast. One day, they are starting school and before their parents know it, they are taking their driving test. A half a blink after that, they are going off to college and moving into an apartment of their own. Many parents find themselves looking backward during this time; reflecting on their child’s life thus far. All they keep wondering is where the time went. This is a normal reaction. Yet, there are some vital decisions that parents have coming that they might not even think to prepare for. Therefore, for parents who have a driving or college-bound teen, these tips can help relieve some financial stress.
There are many colleges who do not allow first-year students to have a car on campus. Other students simply prefer not to be responsible for a car on campus. (Often, a car is not needed.) That means that even though the teen is capable of driving, they are not fully a driver. Therefore, parents can list their teens as occasional drivers. This still covers them and the car while they are driving it. However, it will save parents money not having to add a full-time driving teenager to their account.
When a teenager is added to a plan, in any capacity, the rates will go up. Unfortunately, having a teenager listed on an insurance plan is always a liability. With that in mind, though, parents can double-check their coverage. There may be discounts in other areas, or coverage that is not needed, which was never taken off the plan. Parents should ensure their plan is comprehensive but not over-abundant. This can help even out the higher cost for a teen driver.
Check Homeowner’s Policy
For teens who are going to live at college, a parent’s homeowners’ insurance should cover their dorm too. Before they go away to college, check the plan, but many policies have this perk. If it is not included automatically, there could be an option to add it. This will be far more affordable than opening up another policy.
In summation, the next few years are filled with a lot of intense emotions. However, that does not mean that parents should simply take what they can get as easily as possible. Money is always tight and when a teen is driving and/or going to college, the funds only dry up faster. Thus, it is important for parents to take advantage of every financial tip they possibly can.
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