It's every teenager's dream to own a car, and many are lucky enough to get one. However, they have a major obstacle to overcome: huge car insurance premiums. Luckily for parents of those living in North Carolina, there is a small loophole that can save hundreds of dollars. It may not be visible to an ordinary face, but it cannot be missed by someone who has the ability to read between the lines. The trick is quite simple: know what to do and when to do it. Before getting into the elaborate details, it is essential to understand how these policies actually work in North Carolina. Due to the huge gap in premium costs between adults and teens, your total amounts could increase dramatically once added to your policy. Insurance agencies work under the assumption that teenagers are highly accident-prone and that the chances of the insured seeking compensation are high. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay However, this clause is only applicable for a period of 3 years, after which the rates return to normal. A teenager who has recently been named in a policy is classified in the 1st level. In this case the surcharge is maximum. At the end of the first year he becomes eligible to transfer to the 2nd level which provides a lower increase. Likewise, at the end of the second year, you will be entitled to be moved to the 3rd level, which provides the lowest supplement. While this is simple to understand, it is certainly difficult to implement. The problem arises with the timing of the policy renewal date and the child's experience. If they do not match, you risk paying surcharges for a longer period. The idea is to enroll the teenager in the policy at the right time so that both dates coincide. A simple example that demonstrates the same would be something like this. Let's say your policy renewal date is July 4th. Let's see what happens if the new driver is added to the policy on August 4th. As always, the policy will need to be renewed before the 4th. However, since the teenager has only 11 months of experience and not a full year, he will not be transferred to the 2nd level. The insured would end up paying the same amount of the supplement as last year. As per the terms and conditions, the agency has the right to defer the update of the same until such time as the policy needs to be renewed. This means that the upgrade cannot be carried out even at the end of August but only after next July 4th. By being nimble and making sure your timing is accurate, you can save a good amount on your North Carolina auto insurance policy. Of course there is nothing to be done regarding the amount of the surcharge; it is certainly possible to pay for the shortest amount of time possible and use the amount elsewhere.