Certain vehicle insurance providers allow for discounts when there is more than one user of a car living in the same household. It can be any member of your family, including mother, father kids and other relatives. However, the finer details are the prerogative of the service provider, but most allows car owners to use this option.
All you need is a good credit score, along with a history of no claims and you are set for big gains while insuring your vehicle. Yes, homeowner’s deals are welcome as well. But it is all dependent on the credit score. If that slips, so will any hopes and dreams of a great deal. However, you do have the option of excluding a family member out if he/she suffers from lower credit ratings or bad history. But, keep in mind that is possible only if the said person has a personal policy to fall back on.
That being said, a family plan is the best option is today’s modern and urbanized world. Your kid will grow and will pretty soon need a personal vehicle. And that means you will need additional coverage. If you are looking to be careful with your spending in this world of economic instability, then clubbing the insurance together is a great way to reduce the overhead.
In the following section, we will have a look at the major benefits of a family insurance plan. Read on to know more.
Enjoy the discounts
When you club policies together, then one policyholder can enjoy significant discounts. Well, this works only if you purchase policies from the same service provider. Multi-car coverage or bundling of other insurances including the house, allows you to cover your vehicle on the cheap.
Additionally, the benefit can extend to the added members as they get to keep their savings. For example, if you are adding your children to the list, they will still qualify for the additional student benefit rates. This helps in the building up of good credit history from a very early age.
The discounts are substantial
It is not a meager discount amount that we are talking about. You can enjoy up to twenty per cent discount, which means you are getting insurance at its lowest price. Keep in mind that no teen driver will qualify for this much of a discount, especially considering that young drivers are deemed the highest risk along with the older population.
The same goes for clubbing other insurance and policies like homes, additional cars and motorbikes. It is all down to the fact that when you are piling, you are essentially bringing new business to the service provider. The service gets to keep their profits, and you get to save a few dollars. So, this is a win-win scenario for you.
The family plan is low risk
A scientifically proven fact is that people with family tend to drive more carefully, which means there are little chances of an accident. This is simple human nature, and it safeguards the fact that a family insurance plan will get deemed as low risk. There is an attitude of responsibility and better driving behavior in case of married and drivers with families. As this fact was proved beyond reproach quite a while back keep in mind to use this option to save a few dollars while insuring your vehicle.
The case of young drivers
The problem with young drivers is that they are deemed potentially at risk due to their young age and relative inexperience when it comes to driving. That is why the insurance premiums tend to be on the higher side. However, everyone needs to go through this initiation and high-risk period and any help for reducing the premiums is always welcome.
If you are looking to add your children to the existing plan, then your premiums will increase. So it is essential to be proactive and accrue all the possible discounts to cut down the surcharges during this expensive period.
Practice safe driving
Well, this last one is a bit of advice. We have already stated that young drivers can’t get a reduced premium on their own and the way you can save is to include your family members into your plan. However, following this, you need to maintain extra care as any case of an accident will make matters worse for everyone involved.
In case you have a large family, then you will require a bit of planning to get the best coverage. However, this doesn’t mean that you need to pay through your nose. The best deals are out there, and so are the ways to save money. Using an older driver to bring the insuring cost for a younger, much less experienced driver is a great idea if done correctly. All the best!