What You Should Know Before Adding Your Teen To Your Insurance

When your child comes of driving age it can be both exciting and nerve-racking. Here are a few things you should know before you add your teen to your car insurance.

Your Rates Will Go Up

There isn’t really any getting around this. A teen driver is a bigger risk than an older driver. For this reason, your rates will go up some when you first add your teen. Many families find it a good idea to require the teen to help toward this expense with afterschool work. This is a great way to offset the new expense while also teaching your child the cost of driving.

There are Discounts

Many insurance companies will offer families discounts for things such as good grades. This is a great incentive to help your child do their best in school. Setting up requirements that grades stay at a certain place in order to earn the privilege of driving will benefit you and your child in several ways. Grades improve, insurance is cheaper and the child learns that something is required of them in order to have the privilege of driving. 

Driver’s Ed Helps

You can also get discounts by enrolling your child in a driver’s ed program. This benefits you and your child in several ways. First, your child will get a systematic education on the best driving techniques. This is often better than mom and dad simply instructing them their self. Secondly, your child will be a safer driver and third, you can save some money on your car insurance costs. 

Set Boundaries and Stick to Them

Teens need to understand that driving is a privilege that they can lose if they are not contributing and following the rules. Use their new driving privileges as leverage to enforce these rules and expectations. 

If you would like to learn more about adding your teen to your insurance policy contact Old Pueblo Insurance serving Oro Valley, AZ

Replacement Cost Vs. Market Value

What does this terminology even mean?

As a car owner in Oro Valley, AZ, it is essential to understand the rather insurance-esque terms “replacement cost” and “market value” in order to be educated if you ever need to file an insurance claim.

The Replacement cost is in reference to the amount of money that it would take to completely rebuild or replace your car should disaster strike, be it a vehicular accident, the result of a storm, or even if it is a freak-mishap (a tree falling on the hood of your car while it innocently sits in the driveway). This figure is determined based on current prices for the labor, material, taxes, fees, and plans. Speak to an agent at Old Pueblo Insurance to discuss this, as well as the following.

Market value refers to how much your car would sell for in its current state: wear and tear and all. This type of value can be very hard to determine without the aid of an expert, as it changes according to the ebbs and flows of the car market, in addition to the car’s attributes on the inside as well as the outside. To get a round-about idea of the value of your car, you can always compare it to others of the same make, model, and year, this is not always the precise figure though. For a more accurate appraisal, a professional should be contacted. 

Contact an agent at Old Pueblo Insurance, serving the needs of those in the Oro Valley, AZ area, to discuss these terms in more detail, and as they pertain to you, in particular.

Should You Buy New or Used to Save on Auto Insurance?

When buying a vehicle, there are different elements to keep in mind when it comes to how much you’ll eventually pay for auto insurance. Some of the factors include your current driving record, if you have any points on your license, how long you’ve been driving and so on. Of course, a good deal of the insurance costs revolves around the ability to purchase and obtain replacement parts and the age of the vehicle. At Old Pueblo Insurance, we want to help you save money on auto insurance, whether you live in Oro Valley, AZ or the greater Tucson area. 

Used Is Typically Less Expensive to Insure

Generally speaking, a used vehicle is less expensive to insure than a new vehicle. There is the occasional exception, but newer vehicles have more expensive tech in place. It is also harder to find used replacement parts, which means all repairs must utilize new parts. Buying a vehicle that is four or five years old can save a good amount on the sticker price and your insurance cost. 

Rare Models

Of course, there are rare trim models. Perhaps you purchase a Mustang Boss edition or another vehicle model with limited production. In this case, the limited production vehicle likely will cost more than a brand new vehicle. This comes down to the cost of replacement parts. With fewer models, there are fewer available parts. Manufacturers of the parts will charge more as well, which is what forces the insurance up. 

It doesn’t matter if you live in Oro Valley, AZ, Tucson or further out, Old Pueblo Insurance is here to help you save money on your auto insurance. If you want an affordable vehicle that also costs less in insurance, consider purchasing a used vehicle.