If you have a teenager who’s just got their driver’s license, you may have notices that adding them to your auto insurance policy can mean a significant hike your premium. The reason for this increase is simple: New drivers have less experience and are therefore considered a higher insurance risk.
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That said, parents (or whoever is paying for insurance) do have some options when it comes to finding affordable car insurance for teens. In this article, we’ll explore several ways you can save on insuring your new driver.
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Shop Around
Because each insurance provider calculates premiums in their own way, rates can be quite different from one insurer to the next. The National Association of Insurance Commissioners (NAIC) recommends looking into several insurance companies and comparing policies rather than signing on without research.
When considering policies side-by-side, be sure to pay attention to:
- Liability coverage limits
- Collision and comprehensive coverage
- Deductibles
- Optional coverage
- Vehicles and drivers listed on the policy
It’s smart to remember that the provider who offers the most discounts doesn’t always end up being the most economical. The number look at is the final premium for comparable coverage.
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Inquire About Good Student Discounts
Being a good student can translate to a reduction in the cost of insuring a teen driver, depending on eligibility. Of course, this type of discount is not always a given for every insurance company, so check with your provider if they offer a good student discount and if so, what the parameters are.
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Consider Driver’s Education
Successfully graduating from a recognized driver’s education course can, in some cases, help a young driver secure an insurance discount. Again, the availability of this discount will vary between states and insurers, so be sure to ask about driver’s education when shopping for policies.
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Make a Smart Choice of Vehicle
The kind of car, truck, or SUV your teenager drives can impact insurance rates. Details like the vehicle make and model can affect premiums. Indeed, luxury and sports cars will typically generate higher claim rates. When in the market for a vehicle for your teen, it’s a good idea to as for an insurance quote for that specific vehicle. As a general rule, less expensive, safety-forward cars can often mean lower insurance costs.
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Ask For Usage-Based Insurance
There are insurance companies who offer the option to monitor driving behavior as a gauge for setting premium rates. Depending on the provider, these programs may factor in elements such as mileage, braking, acceleration or driving times. If your teen driver is eligible for a safe-driving or telematics program, ask if participation could mean a discount; rules and programs differ depending on insurer and state.
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Think About a Higher Deductible
Raising your deductible on collision or comprehensive coverage can lower your premium. The caveat for this is that you’ll have to pay more out of pocket for a claim. So for this tip, make sure your family is comfortable paying a higher deductible in case of an accident. .
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Keep a Clean Teen Driving Record
Safe driving is always a good idea, but it can also help improve your insurance costs over the long run. Accidents, tickets, and violations can influence premiums, whereas maintaining a clean driving record can lead to better rates or discounts.
Remind your teen driver to:
- Stay within posted speed limits
- Avoid distracted driving
- Never drive under the influence
- Always wear a seat belt
- Don’t allow passenger distractions
- Follow graduated licensing restrictions
Final Thoughts
Securing affordable insurance for teen drivers comes down to shopping around, comparing policies, and a little mindful planning. Start by obtaining quotes from several insurers, then ask about all available discounts. Also, keep in mind the type of vehicle, deductible, and coverage options before making a decision.
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