Adding a teenage driver to your
insurance policy may just be as frightening for many parents as the thought of
having their teenager out on the road. Rates for teenager drivers are notorious
for being among the highest, and there is good reason for that. The
inexperience of a young driver and the statistical likelihood of an accident
mean insurance companies have to hedge their bets when it comes to providing
coverage. Higher rates protect insurance companies from the potential for
claims. Fortunately, there are still some ways to get that teenager’s car insurance rate down to something manageable.
Discounts
for Young Drivers
Insurance companies offer a wide
variety of discounts, and some of them apply specifically to young drivers. One
of the best discounts available for teenagers is the good student discount
offered by many companies. If your teenager is maintaining a certain grade
level, they can qualify for often hefty discounts. All you will need to do is
provide a transcript proving they meet the required level. Be aware you will
likely need to re-qualify for this discount on every renewal, meaning your
teenager will have to maintain those good grades.
There are also discounts for
teenagers who attend certain driving safety courses. Driver education is one of
the best ways to ensure your young driver is safer on the road and also to get
your insurance rates down. In addition to the major driver education courses,
individual insurance companies may have safety videos or other educational
options to get you a discount.
Combine
Policies and Save
Families with multiple drivers and
varied insurance needs can save money by combining their policies all in one
place. Often quoting your car insurance with the company that handles your home
insurance can save you on both policies. Some companies even offer discounts
for combining life as well. Having all of your cars insured in the same place
has similar benefits.
When you get car insurance quotes, ask the company to quote your home as well. Adding a
teenage driver is a prime time to do a little research and shop your rates
around. Some companies offer better rates for young drivers than others, and
it’s well worth getting quotes to see who can offer you a deal. When you quote
the teenage driver, be sure to have all of your vehicles quoted as insuring
just that driver alone is rarely the best way to save. You might find you wind
up with lower rates on all of your policies while insuring a teenager at the
best possible rate.
Smart
Car Shopping
Insurance rates are not just based
on the driver, but on the car as well. Thus, pairing a teenage driver with a
car that carries higher rates to begin with is not going to do your premiums
any favors. Your best bet for a car for your teen is to choose something used,
economical, and probably a lot less sporty than they would prefer.
Older cars are typically less
expensive to insure, so choosing used is may be a good bet. Sports cars and
luxury cars carry higher premiums, so they are not usually a good choice for a
young, inexperienced driver. If you are shopping for a car for your teen, make
a list of the options you are considering and then call for quotes on each
before you buy. This will ensure you don’t run into any surprises when you have
already bought the car and now have to pay the insurance on it. Some parents
choose a low-value car that they are willing to skip comprehensive and
collision coverage on to cut premiums – just be sure you are willing to take
the loss if the car is damaged or written off.
Keep
a Clean Record
Remind your teenager that keeping a
clean driving record is vital to making certain that the rates stay affordable.
A ticket or an accident on a young person’s driving record can send already
high premiums soaring. Young drivers need to be extra cautious as their
inexperience can cause mistakes that lead to a strike against their driving
record.
Remind your teenager to always stick
to the rules of the road and to be extra cautious about distractions while
driving such as cell phones and friends in the car with them. The best way to
get a good rate that stays low over time is for teenage drivers to maintain a
clean record so that they can qualify for rate reductions in the future.
With good, safe driving and by
making use of available discounts, you can shop around for the best possible car
insurance rates for your teenage driver and take the sting out of high rates.
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