6 Ways to Lower Car Insurance Premiums for Teen Drivers
If your teen wants to become a new driver, let them know how expensive car insurance is. Actually, you may see your entire insurance policy double just by adding the teen to your policy. So, you better research costs if you plan to insure your teen soon.
But why is Teen Car Insurance So Expensive?
According to the Centers for Disease Control and Prevention, car accidents are the leading cause of teen deaths. It is assumed that teens are three times more likely to cause a fatal accident than those above 20 years. Boys take most of the blame since they’re more likely to speed up and ignore hazardous situations.
Nonetheless, insurance companies treat male and female teen drivers as high-risk. For that reason, they make insurance cover for these group more costly than any other age group. In fact, adding a sixteen-year-old to your insurance policy may see your contributions soar to around 110%.
So, if you got a new driver, check out the tips below on finding cheaper car insurance and saving money.
Save Money by Finding a Cheaper Car Insurance for Teen Drivers
- Look for Discounts
If your teen studies at a boarding school more than 100 miles away, you may be eligible for special car insurance discounts. The same applies to teens with at least 3.0 average grade points. Other money-saving ways include bundling all policies together and maintaining low annual mileage.
Consult your insurance agent and see whether you qualify for these and other discounts. It’s worth noting that some policies require teens to be insured on only one car, meaning the kid may only have to drive that one car. Sites like InsuranceQuotes will help you compare rates among car insurance providers.
- Make it a Family Conversation
Most teen drivers remain oblivious to insurance coverage and the hefty costs. For this reason, they may fail to renew their policies or drive carelessly, thinking that insurance covers everything. But since you, as a parent, understand car insurance pretty well, you must make the cover and the cost a conversation for all, including the teen.
Let the soon-to-be driver go through the quotes to understand how expensive insurance can get. This will help them understand the need to drive safely for better rates. You can even take this further by requiring the teen to provide for the insurance portion or make good grades a prerequisite for paying the policy.
- Complete a Driving Course
Most states require students under 18 years to undergo driver’s ed classes to qualify for a license. Check whether your state has this requirement to start on the right footing. However, statistics show that students trained in a full driving course are less likely to cause accidents, which may positively impact insurance rates.
- Have A Single Policy for All
It would be much cheaper to insure your teen on your policy than purchase another policy for them. This way, the teen will benefit from your preferred rates, and you’ll reduce the bills and paperwork. However, it’s wise to review both policies and see whether it makes sense to combine them all.
Another way to save money through cheaper car insurance is to use the same car instead of having a separate car for your teen. Having their own car would require digging deeper into pockets for additional insurance.
- Go For a Less Expensive Car
Obviously, high-end cars are more expensive to insure than your run-on-the-mill ones. These are considerations you need to balance, and all you need is a car that’s easy and safe to drive. However, this does not mean that the teen should go for that old-school family car that can’t compare to the readily available newer models.
- Wait a Bit Longer
With the high cost of car insurance premiums, you may need to wait a bit longer before applying. Note that the rates decrease with age, meaning they’re likely to pay less for car insurance once they’re more mature. However, it’s crucial to start driving early to gain the much-needed driving experience and reduce possible road accidents. So, as a parent, you can take your teen through the driving course and supervise their driving skill as they buy time to buy car insurance of their own. Just be sure that they don’t delay too long.
Save Money on Car Insurance for Teens
The thought of paying for your teen’s car insurance premium is enough to make you clutch your wallet in dismay. These purchases can be expensive and would significantly affect your already restricted budget. The good news is that there are ways to get the bill out of the stratosphere and save money.
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