Check with your exchange student program coordinator to see what kinds of coverage are automatically provided for the child. But don’t take anyone’s word, get copies of documents that prove the coverage situation. This article briefly discusses how a personal auto policy responds to exchange students. Please be sure to read its companion article, "Exchange Students – Homeowners Coverage."

First, make sure that the exchange student is permitted to drive under the rules of the exchange student program. If program rules allow driving, contact your motor vehicle department to make sure that your student has a valid driver’s license.

The typical auto policy, such as the Personal Auto Policy, extends its coverage to any person having your permission to drive a covered vehicle. Your liability coverage will protect the exchange student against damage he or she causes to other property and people. Coverage to damage done to your vehicle is also available when you have the appropriate collision and comprehensive coverages. Of course the coverage is subject to your policy’s insurance limits, deductibles and other provisions.

Medical payments coverage will apply to the exchange student who is injured in an accident while occupying or driving your car with your permission.

If you expressly forbid the exchange student to drive your vehicle and the student does anyway, you may not have insurance coverage, but you may still be found liable under a court of law - perhaps for improper supervision of a minor. Permission to use the vehicle in some policy forms must come from the person named on the auto policy.

Discourage any exchange student who is a minor from purchasing a car, truck, motorcycle, RV, boat, moped, scooter or any other vehicle. An exchange student’s status makes it very difficult to get proper coverage and causing an accident as a vehicle owner could create complex legal problems. If faced with an exchange student who owns a vehicle, it is important to get any available assistance from the exchange student program, including their legal counsel. You should seek your own qualified legal help to make sure that your interests are protected. The safest course would be to avoid an exchange student situation that includes an owned vehicle.

Please check with a qualified automobile insurance agent after reading this and before your exchange student arrives. Virtually every state has its own special state-mandated endorsement that will expand or limit the coverage we describe here. Companies may use different forms that provide coverage that is quite different than the Personal Automobile Policy Form.

It used to be that, despite all the traditional "woman driver" jokes, young ladies beginning to drive were different from their male counterparts….they were safer. Time passes and things have changed, this time for the worse. Trends, particularly accident statistics, show that girls are gaining equality with boys on the roadways.

The latest information from the National Highway Traffic Safety Administration reveals that the youngest set of female drivers, aged 16, are becoming involved in more accidents. While 16 year old boys are still the scourge of the traffic system, 16 year old girls, licenses still warm from the laminating machine, are closing the gap regarding accidents, increasing their involvement in both non-fatal and fatal categories. Another factor contributing to the equality is that the accident rate for boys in the same age group is improving.

What action should parents of a budding driver take? Begin by recognizing that your new driver, girl or boy, needs your help. Make sure that you provide proper instruction and driving practice. If you’re not already, become a positive driving role model. Once he or she has a license, resist any urge to allow broad driving privileges or to assign responsibility to take over chores such as driving younger siblings. Also, make sure that you exercise control over how and when they can operate a car. Finally, bite the expense bullet and make sure your son or daughter is properly insured. Your insurance professional can give you more assistance in seeing that your new driver turns into a safe one.

If you regularly carry young passengers in your auto, have you done everything possible to make sure they’re safe? Are you familiar with what is involved in keeping children safe? If you’re not, read on for some tips on what’s necessary to protect the persons most vulnerable to injuries during car accidents.

While you might think it would be safe to comply with your state’s child safety or restraint law, you would be wrong in many states. The National Safe Kids campaign recently reviewed the states’ child restraint laws and found them to be quite inadequate. Based upon the guidelines of its own model child restraint law, nearly every state inadequately protects its children. How? In most instances state laws fall short in the following areas:

• penalties for restraint law violations are too low to encourage compliance
• rarely establishes restraint guidelines for children older than eight
• too many exceptions to the restraint laws exist
• few states offer child-seat loaner or assistance programs

While you’re likely familiar with the needs of infants and toddlers, the focus of protection usually is upon a child’s age or whether a safety appliance exists. Here are some considerations for protecting young auto passengers:

Infants - Should be in well-constructed and padded infant carrier that should be located in a rear seat. Infant seats should be of the type that is made to face the rear of the seat and NOT the front of the passenger area. Infants must be protected from the chance of being thrown forward into hard surfaces.

Toddlers - Should be in well-constructed, padded child carriers that, while facing forward, should only be placed in the rear passenger seats. Again, this is to minimize the chance of hitting hard surfaces (such as a dashboard or a windshield) and to avoid air bags which are designed to protect adults.

Pre-schoolers - May move from child carriers to well-constructed and padded booster seats. The purpose of the boosters is to make sure that the seat belts fit properly. As with child carriers, these restraints should be installed in rear passenger seats.

Older children - Around age 12, it should be safe to allow children to ride in a car’s front seat. HOWEVER, the age guideline assumes that a child has become tall and heavy enough to be properly secured by regular restraints. Be careful that shoulder straps either fit these children properly or are properly tied-down so they don’t represent a hazard. Also, be realistic. Age is a secondary consideration to body size. If a child’s small build results in a poor fit for regular seat belts and shoulder straps, continue placing the child the rear with a secure seat belt.

A disconcerting fact from the National Safe Kid campaign survey is the high incidences of children who are allowed to ride in cars without restraints or while improperly secured. This sad fact results in hundreds of thousands of serious injuries and deaths. Every passenger in a vehicle should use restraints that are appropriate for his or her age and size. Don’t depend on a law; depend on what’s needed to keep everyone safe.

What Is an SUV Compared to a Car, Van or Truck?

Private passenger vehicles include coupes, sedans, sports cars, pickups, vans, mini-vans, station wagons, jeeps and sports utility vehicles (SUVs). These vehicle classifications are based primarily upon the physical characteristics, driver use and performance. For example, sports cars are built low to the ground (low profile or clearance) for peak handling ability and speed. Pickup trucks have more powerful engines and open cargo areas for hauling and towing. SUVs have a high clearance or profile and have enclosed cargo areas. They are capable of handling off-road driving, accommodate more passengers (compared to trucks) and have a higher cargo-carrying capacity. SUVs could legitimately be considered as hybrids of other vehicle types. One thing SUVs have in common with other vehicles is that they have to be insured. Insuring SUVs - A Rollercoaster

SUVs have come to dominate vehicle sales as well as the nation's roads. Insurance companies have had to create a pricing and underwriting philosophy toward them. As it turns out, a pricing and underwriting approach is less of a philosophy and more of a rollercoaster ride. Why has it become a ride? Well, at first glance, it seemed to make sense to charge a LOT to insure an SUV! SUVs are big and very expensive, which translates into very expensive to repair or replace. Then it became apparent that passengers were safer in such heavy vehicles, so it would cost less to pay for their injuries in accidents. Then insurers recognized that something was overlooked: those big, safer vehicles inflicted higher damage to smaller cars during accidents, so more money is paid for injuries to other drivers and their demolished vehicles. Insuring SUVs - Two Rollercoasters

Now there is more than one rollercoaster ride as insurers are focusing on different areas of these perplexing vehicles. One insurance powerhouse is focusing on the fact that SUVs are safer for their passengers. Since owners and riders don't suffer as many injuries, it has announced a discount for the rates it charges for Medical Payments coverage (which pays for injuries to the persons named as insureds under an auto policy). Simultaneously, several other well-known insurers have publicized plans to increase SUV rates on liability coverages (which pays for injury or property damage caused by an insured driver). Keeping Insurance A Mystery

An immediate result of these contrary approaches is to continue the industry's strong tradition of being a mystery to consumers. How can the SUV-buying public understand how the same type of vehicle is being priced differently (for different reasons) by different insurers? The only thing that is clear is this: if you have questions about insuring an SUV run, don't walk, to an insurance professional and talk about your needs.

Standard Is As Standard Does

Depending on the type of car you own and your driving history of tickets and accidents, you are likely insured in the standard or preferred auto market. Standard and Preferred markets are nearly identical. They both cover typical car owners, driving typical cars in typical uses. Typical or average cars and operators allow insurance companies to use a comfortable set of assumptions on what to expect for the number or losses and the expense of repairing the losses so that premiums can be developed and charged. But what if you own a classic or antique auto? Well the above assumptions can be tossed out because you're in a special coverage situation. Coverage Needs

You may have to reach out to the specialty market for protection of your special auto. A classic auto is commonly considered to be an auto around 15 to 25 years old and, naturally, has appreciated in value. Specialty coverage is necessary because standard auto coverage rates are based upon a car losing value each year due to aging and normal vehicle use. The owner of a classic or antique car needs coverage for a vehicle that maintains or increases in value. Further, such owners have to deal with a carrier that has expertise in handling losses to their collectible cars as well as being experienced in making the necessary considerations to charge the right premium. Rating And Eligibility Considerations

Specialty car insurers typically base their rates on elements such as:

• car's current value (often established by appraisal)
• any special design or features
• deductible
• use (exhibition, touring, parade)
• availability of storage in a locked garage
• owner's age (no youthful drivers)
• whether spare part coverage is included
• availability of another car for normal vehicle use
• whether the car's coverage includes automatic increases to account for inflation

If you have a special auto, talk to your insurance professional for advice. He or she shares your concern for having the right type of coverage.

Why Do We Still Car Pool?

Environmental concerns, traffic congestion, convenience, desire to relieve driver stress, poor public transportation, lack or expense of parking are factors that contribute to commuters forming driver groups or car pools. Parents use such arrangements to transport children to school, sports events and extracurricular activities. It is also common for a student owning a car to carry classmates back and forth between home and school.

Regardless of the name, driver groups, share-the-ride arrangements or car pools are a permanent part of the American scene. Typically, several drivers take turns assuming the responsibility for driving their companions. It's common for the turns to last a week and may be done on a rotating basis. These people frequently live in the same area and work in the same office or plant, taking turns driving or regularly riding in one car and paying the owner a reasonable fee to help pay for gasoline, maintenance and wear and tear.

The practice of a parent taking a group of children on an outing, to a Little League baseball game, and the like is commonplace. Other examples of group driving exposures are plentiful:

• church group activities
• book club members driving to their regular meeting or outing
• coaches taking players to practices or games
• employees traveling together to league games or practices, etc.

Liability Insurance Exclusion

Drivers involved in car pools and other group arrangements may wonder if the situation is covered under their auto policy. This concern is valid as many auto policies have restrictions. Typically, liability coverage under personal automobile policies does not apply to ". . . liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance." (A public conveyance is a vehicle used indiscriminately in transporting the public without being limited to certain persons or occasions. A livery vehicle is one that is offered for rental). There is slight variation in language among policies issued by various insurers, but the intent is the same, to exclude the use of a personal auto for transporting people or property for income. However, this exclusion does not affect coverage for car pool, driver group, and share-the-ride arrangements. Why Isn't Coverage Excluded?

Coverage is unaffected because the driving exposure is essentially the same. The common exclusion concerning "public or livery conveyances" is to prevent coverage for situations that involve a commercial or business exposure. Using an auto that is covered by a personal auto policy to transport people or goods for hire is unfair to insurers because, while the insurance company charged a premium based on personal use, "public or livery conveyances" are typically:

• driven more miles
• exposed to worse (i.e. high density) traffic situations
• driven under more pressure to meet delivery schedules
• exposed to poorer driving conditions

In other words, such use calls for more careful underwriting, different or special coverages and, more important, a higher commercial premium.

However, group-driving arrangements are not significantly different than the routine personal use of a car since personal auto premiums contemplate using the car for commuting, vacations, personal errands, etc. Most car pool arrangements are a form of personal use, so the "personal" premium compensates an insurer for the exposure. Are There Other Coverage Considerations?

Yes. Car owners may worry if their insurance is affected if another member of a car pool is driving their car. The answer is that any person using the vehicle with the car owner's permission is covered along with the car owner. Obviously, a car pool relief driver has the named insured's permission, so coverage would still apply.

Persons who drive in carpools may want to discuss the details with their insurance agent. It's important to discuss the details to make sure that coverage isn't adversely affected or to be certain that their insurance limits are adequate. An insurance agent may recommend that you carry higher bodily injury liability insurance limits, especially if your policy contains sub-limits that apply separately to injured persons and to the total amount of losses. Higher medical payments coverage limits may also be in order. Providing full details can help an agent make sure that any fees involved in the arrangement represent coverage for the driver's operating expenses and not additional income. Conclusion

In most instances, the use of a covered car in a typical share-the-ride arrangement or car pool will not compromise or void either the liability or medical payments protection under the personal auto policy. The fact that passengers pay a small amount of money to help cover the expense of automobile operation is unlikely to eliminate their driver's insurance coverage since the car is not being used as a "public or livery conveyance."

Insurance consumers should be encouraged by the flexibility of coverage under their personal auto policies. Participation in a car pool does not void automobile liability insurance provided the pool is not operated for a profit. There is no problem when the members of the pool use their respective cars approximately the same amount of time. If one of the members does not share the driving and pays a regular fee, the insurance protection of the owner of a car involved in an accident remains intact. However, any fees received by a driver from car pool passengers should only reflect a reasonable share of the gas and oil expense and depreciation on the car. Do you still have questions about your situation? If so, contact your insurance agent, a professional who's in an excellent position to provide you with answers.

Here we continue our brief discussion of typical coverages found in an auto policy. Be sure to see Part One of this topic.

Cars are expensive to buy and repair and their high cost is a strong incentive for protecting them. If you borrowed money to buy your car, the lender was likely to make certain that you carried comprehensive (increasingly referred to as "other than collision") and collision coverages to pay for any damage to the vehicle. Collision coverage

This covers damage to your own vehicle. The damage has to be the result of your vehicle running into (colliding with) another object, such as other vehicles, trees, light poles, mountains, etc. Comprehensive or Other Than Collision coverage

This also covers damage to your own vehicle. The damage has to be the result of a specific cause of loss. Although causes of loss may vary by policy, some common causes include fire, theft, hitting an animal, vandalism, earthquake, flood or hail.

Remember that both Collision and Other Than Collision coverages are subject to deductibles. A deductible is merely the initial dollar amount of a loss which is paid by you, the policy owner. Personal Injury Protection or Medical Expense

This coverage, the available financial limits, and the exact details of how such coverage operates vary by state. The coverage typically handles medical expenses for injuries to you, your passengers or people who are "around" you. It is usually a "per person" limit. It may also cover you and members of your household if you, as a pedestrian or while riding a bicycle, are struck by an automobile. Towing and Labor coverage

This coverage is to help pay for your costs to deal with a disabled car. It could help pay for the car to be towed to a service station or for any repair that occurs at the location of the car's breakdown. Again, this coverage is for labor and not the cost of any necessary parts. Typically the available coverage amount is minimal (often between $25-$75). Rental reimbursement

This coverage reimburses you for the expense of renting a car as a temporary replacement. The car being replaced must be an insured car that's unavailable for use because of that car being damaged or destroyed due to a covered cause of loss. Coverage is also available if use of the insured car is lost because of it being repaired or serviced.

Remember the above information only touches upon some typical auto insurance issues. It's always wise to contact your agent and discuss your coverage questions and needs in detail. If you missed it, please see Part One of this topic which discusses other, typical auto policy coverages.

A driver who's unlucky or careless can maim or kill other persons and severely damage or destroy property. This deadly potential is a primary reason for having auto insurance. In fact, most states have versions of financial responsibility laws which require proof that you are financially able to pay for any damage that you may cause while driving. Insurance policies are the most common method of complying with these laws. More specifically, drivers are typically required to carry liability insurance at some minimal limit which varies by state.

Bodily Injury Liability

This covers damage or injury that you may cause to other persons. The key is that it involves your being held financially responsible for injuries to other persons as a result of the way you operated your car. This coverage does not apply to your injuries.

Property-Damage Liability

This covers damage that you may cause to the property of others. The key is that it involves your being held financially responsible for property you may damage or destroy as a result of the way you operated your car. This coverage does not apply to damage to your property.

Uninsured motorist coverage

The limits and coverage details also vary widely by state. It typically pays for your expenses that result from an accident caused by an uninsured driver. Now be careful with this coverage. An uninsured driver must be the one who is responsible for causing the loss. "Uninsured" is typically defined to include a person who has no insurance; a person who can't be located ("hit and run drivers");a person who has insurance, but their insurance company is financially incapable to provide coverage; plus other situations which may be considered to involve an "uninsured" motorist. IMPORTANT: The amount of protection under this coverage may depend upon state law. Payment under this coverage part may be controlled by the limits mandated by the state's financial responsibility law. Or, a particular state may have specific uninsured motorist legislation that dictates what limit or limits must be offered to insurance consumers. In some cases, a consumer may choose to reject the coverage. Typically, the rejection must be in writing.

Underinsured motorist coverage

Although the coverage concept is similar to uninsured motorist, this coverage is for injuries caused by a driver who is inadequately insured. Basically, it operates as excess insurance, paying for your expenses which exceed the amount of insurance protection available from the other driver's policy. For example. you are seriously injured by a person who carries a bodily injury liability limit of $25,000. Your injuries amount to $50,000. Your Underinsured Motorist Coverage limit is $100,000. If the loss circumstances qualify for coverage per the policy's underinsured motorist provisions, your policy would pay the difference between $25,000 and $50,000, or an additional $25,000.

Remember that this is merely an introduction to complex policy coverages. Be sure to contact your agent for detailed insurance information. Please watch for Part Two of this topic which discusses other, typical auto policy coverages.

The Problem

Car loans and leases used to be no longer than 36 months. Today, with vehicles now as expensive as small homes, the length of loans and leases are typically 48 months, 60 months, or even longer. No matter the type of vehicle, coupe, sedan, van, sports utility vehicle, etc., they share a tendency to depreciate very quickly in their first few years of operation. Compare this with the fact that loan and lease payments are spread over a longer period of time. In short order, the amount of the unpaid loan and lease agreement balance becomes much larger than the vehicle's value. This disparity of values, or gap, exists over much of the loan or lease period. Making matters worse is that this gap is usually only discovered after a total loss. The insurer pays the actual cash value of the vehicle and, instead of being reimbursed for your total loss, you have to pay the bank or leasing company thousands of dollars out of your own pocket (and don't forget you have to pay your deductible too).

A Solution?

Nobody is to blame for this problem-not the bank, leasing company, insurer or the car manufacturer; but there are a couple of solutions to the dilemma:

The Auto Loan/Lease Coverage Endorsement

This optional coverage is available in most states, from a variety of insurance companies.

Coverage Leased vehicles

Reimburses you for the difference between the amount due under the terms of the lease and the actual cash value of the auto in the event of the auto's total loss.

Coverage Owned vehicles

Pays any outstanding indebtedness incurred by you for that financed new vehicle in the event that there is total loss or damage to the vehicle and the amount due under the finance agreement is greater than the actual cash value of the automobile.

Coverage Partial Losses

On partial losses, the company will normally pay to have the damages repaired or parts replaced, and the lease or loan gap coverage option is not a factor in the loss settlement

There are exclusions:

Generally this optional coverage excludes items such as:

• Overdue lease payments.
• Financial penalties imposed under a lease for excessive use, abnormal wear and tear, or high mileage.
• Security deposits not refunded by the lessor.
• Costs for extended warranties, credit life, health, accident, or disability insurance purchased with the loan or lease.
• Carryover balances from a previous lease.

Auto Replacement Cost Coverage

This coverage is still fairly new to the insurance marketplace and its availability varies by state. For an additional premium, an owner of a new car may buy coverage to settle major losses according to the vehicle's replacement cost rather than its depreciated, actual cash value. There are some coverage limitations such as:

• the coverage is usually only available for cars up to six months old
• there may be a maximum dollar amount that applies to a total loss
• the coverage may only be available for the first few years of the car's useful life.
• Considering these limitations, this option is more suited to narrowing, rather than closing the lease/loan gap.

Again, companies usually restrict these options for persons who purchase the coverage soon after they acquire or lease a new vehicle. Companies may not offer this endorsement on used vehicles. The cost for these optional coverages is usually a percentage of an auto's premium that's charged for physical damage to your auto. If you have a newer vehicle and are concerned that you could suffer a large out-of-pocket expense if your car is totaled, you should talk to a qualified insurance professional to answer your questions and, if you choose, to seek the coverage for you.

(Formerly: Warning! Car Stereos, Car Phones and Other Mobile Electronics. They May Not Be Covered.)

A basic auto policy is designed and priced so that it only covers certain vehicle features. It is important to understand that you might have need extra coverage to take care of expensive vehicle options such as custom or electronic property.

Factory Options

Factory installed vehicle options are included in the vehicle identification and symbol numbering scheme used by most insurance companies. (Note: if you're not familiar with these terms, please read "Do You Know About Auto Symbols?"). While traditional features are accounted for and covered by an auto policy, manufacturers sometimes jump ahead of insurance policy designers. In the past, theft deterrent car radios installed by the factory (which are disabled when removed from the dash board) were not covered by many auto policies. It is important to read your particular auto policy to make sure that it doesn't contain this gap in coverage.

Dealer Options

Factory installation does not apply to autos that are modified by a conversion specialist or an auto dealer before being displayed for sale. Car dealers frequently add options to make their inventory more attractive to car buyers (and more profitable). Spoilers, body side moldings, special wheels and hub caps, body paint, car phones, speakers and stereos, pin stripes and conversion packages can be added directly onto the dealer invoice. Insurers cannot adjust their premiums for these additional features unless they're told about them, including how much they cost. If you're not sure what is original and what has been added, ask your local dealer. If the information on options is not shared with the insurer, the unknown options may not be covered after a loss.

What Are Your Options?

You can ignore the whole issue, but you risk the chance that some of your valuable property may be uninsured. The prudent choice is to share your information with your local insurance professional. Together, you can take the steps to get the coverage you need. Remember, even when options aren't covered by a basic policy, you can arrange to add the necessary protection.

My Driver Safety Agreement

Driving is a privilege that I may lose by violating this agreement or may have suspended for other reasons such as (but not limited to) unsatisfactory school grades and violations of family trust.

• I will obey any curfews or restrictions imposed by my driver's license.
• I will obey all traffic laws and speed limits.
• I will not drink and drive, or use illegal drugs, or drive if I am taking ANY medication that may affect my driving.
• I will not ride with anyone whom I know or suspect is under the influence of alcohol or drugs (legal, or illegal).
• I will not permit any open or empty containers of alcohol, or transport anyone who I know or suspect may be carrying illegal drugs in any vehicle I operate.
• I will not ride in any vehicle where I know that there are empty or open containers of alcohol or where anyone who I know or suspect may be carrying illegal drugs.
• I agree not to drive with or transport anyone who is in possession of a firearm or other "weapon."
• I will always wear my seatbelt and shoulder harness. I will not ride in any vehicle in which there are more people than seat belts.
• I will make certain that I can always hear emergency vehicles and traffic sounds.
• I will drive defensively, recognizing the driving dangers posed by other drivers.
• I willI will not transport passengers unless they are properly secured by a seatbelt.
• I will always wear a helmet if I am driving or riding on a motorcycle. I will not transport a passenger unless he or she also wears a helmet.
• I will drive in a manner that respects the safety of myself, my passengers, other drivers and pedestrians.
• I will ignore peer pressure. While driving, I am in control. I can stop and ask others to leave my vehicle and, as a passenger, I can ask a driver to stop and let me out.
• I will not drive unless I feel safe and certain of my ability.
• I will be especially alert during dangerous conditions such as rain, snow, sleet, wind, heavy traffic, construction zones, and accident scenes.
• I will always lock every door and take the keys when I leave the vehicle. I will park in areas where I believe the vehicle will be safe from damage or theft.
• I will obey the driving instructions of my parent(s) and of law enforcement officers.
• Additional Conditions Required By My Parent(s)

• ________________________________________________________________
• ________________________________________________________________

I have read, understood and I will comply with this agreement.

Signed______________________ Witnessed_________________________

Date:_______________________

A new driver can send a parent’s stress-level soaring. So let's focus on ways to control a young driver's impact on your peace of mind.

Keeping your young driver safer

• Consider preparing your child with a course in defensive driving as a tool for avoiding accidents and increasing confidence.
• Require your young driver to understand, sign and comply with the Youthful Operator Driver Safety Agreement.
• Be a proper model by using seat belts and never using alcohol or drugs.
• Provide your child with a well-maintained vehicle, equipped with safety devices such as air bags and anti-lock brakes. Also, avoid vehicles that are vulnerable to serious damage during collisions or to "rolling over."
• Control your child's driving privileges...don't hesitate to curtail or revoke them in response to poor behavior.
• Set high driving standards and test your young driver.
• Be certain that he or she can properly pass vehicles, maintain a correct distance, park, merge and exit, change lanes make turns, obey speed limits and be aware of pedestrians.
• Make sure your child understands traffic laws and has a healthy respect for the power of the automobile.
• Don't let your child become licensed until he or she passes YOUR driving test which must include the ability to drive under adverse conditions (dark, fog, rain, ice, snow, rush-hour traffic, etc.).

Another good idea is to talk to an insurance expert about other strategies to keep your new driver safer.

The cost of your car insurance may double by adding a young driver to your policy. This article focuses on ways to control a young driver's impact on your insurance premium.

Reducing your insurance premiums

• Have your child complete a driver training class, balancing its cost against premium savings and gaining a more competent young driver.
• Ask your insurer if it gives discounts to students with good grades.
• Find a company that bases its premium on the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.
• Does your child have to drive to school? If so, expect your company to charge a higher premium for the increased amount of driving.
• Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver's first accident or minor traffic violation.
• Make sure your new driver understands that poor driving habits can result in higher premiums or a canceled policy.
• Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.
• If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
• Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance convenience against cost.

Important: don’t pursue lower premiums blindly. It's important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy. Talk to an insurance professional about more strategies to keep your new driver affordable.

The insurance impact of young drivers

Adding a new young driver to your auto policy can more than double the cost of your insurance. The actual impact on your insurance varies according to your state's regulations. Insurance premiums for new drivers may be based on driving experience, age or even gender. Young drivers add another peril since some states permit policy cancellations after such operators suffer a single accident or violation. So let's focus on ways to control a young driver's impact on your insurance premium and your peace of mind. Reducing your insurance premiums

• Have your child complete a driver training class. Classes can be expensive, but you save on premiums and develop a more competent young driver.
• Seek premium discounts given by many insurers to students who maintain above-average grades.
• Find an insurance company that charges premiums based on the car your new driver operates most of the time. (Many companies automatically assign young drivers to the most expensive vehicle.)
• Does your child have to drive to school? If so, expect your company to charge a higher premium for the increased amount of driving.
• Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver's first accident or minor traffic violation.
• Help your son or daughter understand that poor driving habits can result in higher premiums or a canceled policy. Do everything you can to avoid the prohibitive expense (and often limited coverage) of substandard automobile insurance.
• Increase your policy deductibles or, for older vehicles, consider eliminating this coverage.
• If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
• Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance convenience against cost.

Keeping your young driver safer

• Consider preparing your child with a course in defensive driving as a tool for avoiding accidents and ask your insurer if it gives a premium credit for such classes.
• Require your young driver to understand, sign and comply with the Youthful Operator Driver Safety Agreement.
• Be a proper model by using seat belts and never using alcohol or drugs.
• Provide your child with a well-maintained vehicle, equipped with safety devices such as air bags and anti-lock brakes. Also, avoid vehicles that are prone to being highly damaged in collisions or are vulnerable to "rolling over."
• Control your child's driving privileges...don't hesitate to curtail or revoke them in response to poor behavior.
• Set high driving standards and test your young driver. YOU must be certain that he or she can properly pass vehicles, maintain a correct distance, park, merge and exit, change lanes make turns, obey speed limits and be aware of pedestrians. YOU must be responsible for knowing if your child understands traffic laws and has a healthy respect for the power of the automobile. Don't let your child become licensed until he or she passes YOUR driving test. Don't forget to also test your child's ability to drive under adverse conditions (dark, fog, rain, ice, snow, rush-hour traffic, etc.).

You must not let the pursuit of lower premiums replace the need for proper protection. It's important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy.

The best advice is to talk to an insurance expert about a strategy to keep your new driver safer and to maintain affordable coverage.

Does this sound familiar?

You've been a responsible driver for many years, but you notice an upsetting pattern; every year your car insurance premiums creep upward. What's going on? What are you doing wrong? Well, the answer may be "nothing." Remember that the cost of providing insurance, as it is with other products and services, may increase for various reasons. Factors that can affect car insurance premiums include the following:

• Your insurance company's overall loss experience (due to a higher level of claims)
• The increased value of newer model cars
• Increases in judgment amounts awarded in auto lawsuits
• Increased business processing and administrative expenses

What these items have in common is that they're out of your control...so don't worry about them. However, you do have some control over what happens with your premiums. It may be time to step back and take a fresh look at your car insurance. How do I evaluate my situation?

A good first step is to gather your insurance records and any other car-related information. Next, determine if circumstances have changed since you last dealt with your coverage. Consider your cars or trucks, how they're now used, who are the drivers and your driving experience. Once this information is handy it's time to call your agent. What should you discuss? Well, here are some areas to consider:

• If you have your home and auto insurance with the same company, are you getting a discount?
• Does my coverage take full advantage of the discounts offered by my company?
• I have more than one car; am I getting a credit?
• How much premium can I save by changing deductibles? Determine the dollar amount of any loss that you can comfortably handle as an out-of-pocket expense.
• Do my cars really need full coverage insurance? On an older car (over six years old) you may want to drop collision and/or comprehensive coverage and carry liability coverage only. Ask your agent what makes sense. IMPORTANT: you must maintain these coverages if you're still paying off a loan on your car or truck.
• Do lifestyle choices such as drinking or smoking affect my premium?
• Does it matter that my daughter made the Dean's List? Don't think this information is bragging since your company may give discounts to young drivers with good grades.
• Did you know that my car has anti-lock brakes; airbag; theft alarm system? (Some companies provide discounts for safety and anti-theft features)
• Did you know that my son took Driver's Education?
• Does the company have accurate information on how often and how far I drive?
• Am I with a standard carrier or do I qualify for any preferred program?
• Is my vehicle charged an additional premium because of its type or performance?
• Do I get a credit for my driving/claims history or for how long I've been covered? If applicable, find out if your company rewards a loss-free history or longevity.

Communicating with your agent

The best way to discuss your insurance needs is to be open and honest with your agent. Giving your agent accurate information puts him in the best position to make certain that you get the best available premium. Carefully answer your agent's questions and provide complete details about any tickets, accidents, or violations in your driving history. This approach also applies to information about who drives your cars and how the cars are used. Finally, your agent is a terrific resource for handling errors about your account or which may be shown in your driver records. . . so use their expertise.