When your teens drive
A MISTAKE parents make when insuring their child’s car is failing to specify the child as the primary driver or as one of the drivers of a vehicle.
One of the reasons parents sometimes neglect to name their child as the primary driver is because premiums for younger drivers are typically higher as the younger a driver is, the less experienced they are, he said.
Nazeer Hoosen, CEO of PPS Short-Term Insurance, a subsidiary of the PPS Group, however warned if the parents do not properly insure the car with the details of the actual driver, they could be in for a massive financial outlay if their child is involved in a motor vehicle accident. One way to lower the premium of the policy for a younger driver is to take on risk by increasing the excess, he said. The second is to stay away from high performance cars as a first car for a young driver.
Hoosen said it is actually not a problem that the car is insured in the parent’s name, as long as full disclosures are made in terms of the primary driver, age and risk details at inception or when the risk changes. — WR.