These days the cost of getting your teenager on the road can seem astronomical. Driving lessons and a car will pretty much empty the old piggy bank, leaving little for petrol, road tax and car insurance cover.
For many teenagers, the stark realisation that they'll have to shell out their nominal incomes to cover these costs can make motoring independence an almost unachievable dream.
That's why so many parents are footing the bill for their teens. Before you put your hand in your pocket, read on to hear how to keep costs down.
Why is it so expensive?
One word: risk. Younger drivers pose a much higher risk to insurance companies and typically make bigger claims. So while your teen might be road safety incarnate and never need to make a claim, their age is still likely to work against you.
So what should you do?
Well, try to choose a car with a small engine. 'Boy racer' modifications can up your teen's insurance costs considerably – and many insurance policies won't cover modified cars at all.
You can also teach your teen the importance of driving carefully and safely – the more accident and claim-free years they have, the lower their insurance policy will be in the future.
And what shouldn't you do?
There are other ways some people minimise their teen's car insurance premium – not all of them legal, desirable or beneficial to anyone. Make sure you know all the implications before considering the following:
You might think that making your teen a named driver on your own policy is the best way to avoid a huge insurance bill. But beware. This is a viable option only if your teen borrows your car from time to time.
If you claim to be the main driver of your teen's vehicle when in fact your not, this is a fraudulent act known as 'fronting' the policy. If your teen has an accident, the insurer could not only refuse to pay out, but could also prosecute.
Don't risk your no claims discount
If your teenager really is the second driver of your car, then adding them to your own insurance policy could be a good solution. However, your own insurance premium could well go up and you risk losing your no claim discount if they ever have an accident.
Talking of no claim discounts, some policies don't allow named drivers to build these , meaning your teenager won't reap the benefit of careful driving until they get their own car and insurance policy.
If you want to strike the middle ground, you could cover a percentage of the insurance cost and let them pay the remainder. Sharing the cost may still help teach your teen the true cost of motoring, encouraging him or her to drive safely and take motoring seriously.
This guest post was written on behalf of Money Matters, the Sainsbury's Bank blog. The views expressed in this post are those of the author and not of Sainsbury's Bank. Though it may include tips and information, it does not constitute advice and should not be used as a basis for any financial decisions. Sainsbury's Bank accepts no responsibility for the opinions and views of external contributors and the content of external websites included within this post. All information in this post was correct at date of publication.
Press release Ringways Kia
Launch Date: Friday 22nd February 2013
Ringways Kia on Wheatley Hall Road in Doncaster closed its doors for the last time on January 25th but only because they moved to bigger and better premises across the town in Balby.
The exciting opportunity arose in 2012 when Group Managing Director, Stephen Russell made the decision to invest in refurbishing an old Harley Davidson site behind B&Q depot.
To mark the opening on Friday 22nd February Paul Philpott, the President and CEO of Kia Motors UK Limited, will officially open the dealership, closely followed by a fun filled launch weekend packed with exclusive offers on all the latest Kia models with the chance to win a romantic weekend away for two!
Popular local radio station, TraxFM will be joining Ringways Motor Group and giving away goodie bags to everyone who joins in with their opening celebration. The winner of the weekend away will also be announced live on air, on Sunday 24th February – it’s surely a KIA event not to be missed.
We are proud to be celebrating receiving a second Commended Award from Motability Operations for our dedication to working in partnership with Motability, and our continued commitment to providing all our customers with excellent service and support
Explaining the reasons for our commended status, Mike Betts, chief executive, Motability Operations, said:
“A new recruitment drive to increase awareness of Motability both throughout the business and in the local community has generated great returns for Ringways in both Leeds and Doncaster. The resulting strong community relationships, marketing and excellent customer service have all contributed to Ringways achieving a commendation at the Motability Supplier Awards. In particular, Motability was pleased to see a boost in the number of trained, accredited Motability Specialists which means there is always an expert on hand whenever the dealership is open. Well done to Ringways.”
The Motability Supplier Awards recognise the performance and consistent excellence across all the different disciplines involved in delivering both the Car Scheme and the Powered Wheelchair and Scooter Scheme. Ranging from car manufacturers, adaptation and conversion specialists to local dealers, who are the face of the Motability Scheme, all winners have delivered the highest standards.
Quicker, Smarter, Better Value Body Repairs
Having helped customers across Yorkshire for over 40 years we take pride in listening to the concerns drivers feel they are facing, as well as observing the ever changing landscape of the vehicle repair industry.
We understand that the increasing cost of insurance and the increasing cost of making a claim is putting pressure on drivers as a claim will affect No Claims Bonus, excess costs, voluntary excess costs and Premiums the following year and we want to help. This is why we have invested in a brand new facility in order to meet the needs of today’s motorists.
Here at Ringways we always try and repair rather than replace in order to keep costs as low as possible, as well as being an eco-friendly alternative, therefore before you make a claim speak to us first, call 0113 399 7310.
Ringways strive to provide its customers with the best service, and options, where possible and our new Bodyshop is no exception:
The Ford Focus 1L Ecoboost has been named 2012 ‘International Engine of The Year’. The small, high-tech, three-cylinder engine also received two other awards – “Best New Engine” and “Best Engine Under 1.0-litre” – in the awards presented by Engine Technology International magazine, based on votes cast by 76 journalists from 35 countries around the world.
Test drive this amazing car today to find out why it’s taken the motoring world by storm.