How does my driving record affect my parents insurance rates?

Your driving record has a profound effect on your parent's insurance premiums. For one thing, the cost of insuring someone under the age of 25 can account for as much as a 100% increase in the premiums. And if you get a traffic ticket or are involved in an accident, the premiums can go up quickly. The good news is that you can also do a couple of things to help keep those costs down.

For insurance companies, 25 is the magical age of maturity. Anyone under 25 is a high risk for auto insurance, while people older than 24 are considered less risky. What this means for your parents is that if you stay on their insurance policy until you are 25, their premiums are going to be much higher.

Because you are already considered a high risk to insure, it only takes one mistake, such as speeding through a school zone, and the premiums for insuring you could go through the roof. When it comes to car insurance, your every move is being watched carefully by the insurance company, and even a minor mishap could be the catalyst that causes rates to go up.

To help keep the cost of insuring you down, there are two things you can do. The first one is to keep your grade average above 3.0, which is the level at which insurance companies give you a discount for your grades. The next thing is to enroll in and take a voluntary driver safety course. Insurance companies give discounts for taking this type of course, but the course must be voluntary. This means that if you were order by a judge or the DMV to take a driver improvement course, you cannot claim that course with your insurance company in order to get a discount.