Nothing says freedom quite like the arrival of a teen’s first ever driver’s license. As a parent, you’re no doubt very proud, but also concerned for their safety. We’ve outlined the three key things to think about as you look to research, purchase, and insure a vehicle for your family’s newest driver.
Set Your Budget
We know, test-driving a new car is definitely the fun part here. However, the most important step in the process is determining a budget. Knowing how much you have to spend, if you’ll pay for it in cash, or opt for financing.
Now is also a good time to research financing options. There are a variety of loans available, so it’s best to do your homework. Getting preapproved for a loan is also a great idea. It will give you bargaining power when you start negotiations at a dealership.
Research The Best Car For Your Young Adult
No doubt there will be differences between what your teenager wants in a new ride, and what you as a parent want them to actually drive. While your son or daughter likely has visions of something fast and flashy, you envision them in something bigger that is loaded with safety features.
Good news! The Insurance Institute for Highway Safety has compiled a current list of cars they recommend for new drivers, which highlights ones with good value and high safety levels. Looking for Certified Pre-Owned cars is another way to find suitable vehicles for teens. The certification comes with a multipoint inspection, and can often include extended warranties and roadside assistance.
Shop Around For Insurance
Once you’re close to purchasing or leasing a new car, the final step is to lock-in insurance. While you likely already have an existing policy, it’s always a good idea to shop around for the best deal, especially when you’re looking to add a brand new driver to the family.
Many insurance companies offer discounts for young drivers who have good grades, have completed driver’s education courses, as well as will be driving a vehicle with specific safety features. Be sure to inquire about all of the possible ways to lower the cost of adding your teen to a policy.
Call a Member Specialist today at 800-422-5852 to find out how we can help you finance a new, or new-to-you ride.