Insurance

How to Save Money on Car Insurance for a Teen

How to Save Money on Car Insurance for a Teen

When it comes time for a teen to get a driver’s license, it can be almost impossible to convince them to wait. On the other hand, due to their inexperience, insuring a teen driver can be an expensive venture. Given the economic troubles of the last several years, it can be important for a family to find a way to have insurance for their teen while not spending a bundle of cash.

Teen insurance for less

Because they are a greater risk for the insurance company, rates for teens are always higher than for adult drivers. However, there are some strategies that can be employed to try to keep costs down as much as possible.

  • Ask about a higher deductible on the policy. This will result in lower monthly payments, though the trade off will be having to pay more out of pocket if an accident does occur.
  • Think about the type of car the teen will be driving if they are going to get their own. A sporty vehicle will increase the insurance premiums, while cars with good safety records will reduce those costs. Look for anti-lock brakes and front and side impact air bags.
  • Rather than buy a separate car immediately for the teen to use, have them share a current vehicle. This allows them to be added to the family policy as a part-time or secondary driver, which is much cheaper than buying them their own plan. Be sure to mention it to the agent in order to get the discount.
  • If the teen is agreeable, seek out a policy that is geared specifically toward them by a company that specializes in young drivers. It is important to make sure the child is on board because these policies often come with certain restrictions, such as not driving at night or only being allowed to drive to and from school.
  • While teens in general may be considered a higher risk, those with good grades are considered more reliable. Many companies will offer discounts for teens with a grade point average of 3.0 or higher. Even if the student achieves that level later, the discount can be applied.
  • Stress to the teen driver the importance of having a good record by avoiding speeding tickets or other driving infractions. Over time, the insurance company will notice this good behavior and reward it with lower premiums.
  • If the teen is old enough to go to college and attends a school 100 or more miles from home, let the insurance agent know. This will often result in a deep discount on the plan but coverage will remain on them when they return home on breaks.

Insurance companies are almost always going to charge a higher premium for teen drivers, but there are ways for parents to reduce the costs while keeping their children covered. Good behavior, the right car and working with the insurance agent can help reduce that expense while still protecting the young driver.

Jane Simpson writes for a website that has a useful auto payment calculator to help parents work out the cost of repayments before purchasing a vehicle for their teen. She thinks it’s worth using the strategies outlined above to get the best deal on car insurance

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