The biggest problem that we see is the child gets their license, the parents call up and say, ‘Little Joey just got his license, and by the way we’ve bought him a BMW’.
People don’t think going in.
So what we advise people to do, granted the child may need a car, but get a car that you’re willing to self insure.
If you get a five thousand dollar car, their premium may be two thousand dollars a year, but if you take off ‘physical damage’, ‘comprehensive and collision’, you can lower that premium to, like, a thousand dollars a year.
So get a car that’s safe, get a car that you trust your child to drive, but absorb more of the loss yourself and you’re going to be rewarded in good premium.
Douglas F. Danaher, CIC, MBA
The Stone Insurance Agency
Managing Partner
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