Insurance implications for driver education

One of my clients called me last year with a question that was pretty interesting.  She’s a Dallas area mom with a son who was about to turn 15.  While she was already wondering what was going to happen to her car insurance premium when her son turned 16, her question was:

Will she get a better discount if her son takes the parent-led vs. instructor-led driver education?

What a great question.  I’d never thought of that nor encountered it before.  Since I didn’t know, here was a great opportunity to discuss it with an underwriter and learn something new too!

Turns out the underwriter had never been asked that question either.  After a quick review, the answer was No;

  • Most insurers offer a discount if the teen takes a qualified class
  • I’ve not run into any insurance company that tiered the discount based on whether the teen attended an instructor-led class or a parent-led class
  • This discount varies from 5% to 25% for the teen driver (it’s not applied to all drivers on the policy)
  • It usually pays for itself within the first year or two

Parents, on the other hand, seem to be pretty divided as to whether or not the instructor-led class will provide a greater degree of sanity for themselves and their children!

What did you do, parent-led or instructor-led training, and how did it turn out?  Let us know by posting on our Facebook or Google + pages or in the comments section.  We’ll all learn something.

Evie Wise
Evie Wise


Evie Wise
Evie Wise

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