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It is every teenager’s dream to own a car of which, many are fortunate enough to get it. However, they have to overcome one big hurdle – huge car insurance premiums. Luckily for the parents of those who live in North Carolina, there is a small loophole which can guarantee savings of hundreds of dollars. It may not be visible to a plain face but it cannot escape someone who has a knack of reading between the lines. The trick is fairly simple – knowing what to do and when to do it. Before we get into elaborate details, it is first essential to understand how these policies in North Carolina actually work. Because of the huge gap in premium costs between adults and teenagers, the total amounts could rise by a drastic amount once he is added onto the policy. Insurance agencies work with an assumption that teenagers are highly prone to accidents and the chances of policy holder applying for a claim are high.
However, this clause is applicable only for a period of 3 years after which the rates come back to normal. A teenager who has newly been named in a policy is categorized into the 1st tier. Here, the surcharge is the maximum. At the end of the first year, he becomes eligible to be transferred to the 2nd tier which comes at lower surcharge rate. Similarly, at the second year end, he gets eligible to be moved into the 3rd tier which comes with the least surcharge amount. While this is simple to understand, it is definitely hard to implement. Problem arises with the timings of the policy renewal date and the child’s experience. If they do not coincide, one may end up paying the surcharges for a longer time. The idea is to enroll the teenager into the policy at the right time so that they both the dates match. A simple example demonstrating the same would be something like this. Suppose the renewal date for the policy is 4th July. Let’s see what happens if the new driver is added to the policy on 4th August. As always, the policy would need to be renewed before the 4th.
However, since the teenager has only has an experience of 11 months and not one whole year, he would not be transferred into the 2nd tier. The policy holder would end up paying the same amount of surcharge as last year. As per the terms and conditions, the agency has the right to defer updating the same till the time policy has to be renewed. This means that the upgrade cannot be done even at the end of August but only after the next 4th of July. By being agile and making sure that the timing is precise, a good amount can be saved on North Carolina car insurance policy. Of course there is nothing that can be done about the surcharge amount; it is definitely possible to pay for the least possible time period and utilize the amount somewhere else.
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