Unfortunately for parents of teenage drivers, the stereotype is against you. Insurance companies (as well as the media) think that your teenager is a speed demon waiting and wanting to make reckless choices when it comes to driving. As their parent, you may be able to vouch for the safety of your teenager’s driving, but since the statistics are against you, you may have no choice but to accept the car insurance company’s high rates for teenaged drivers.
Not necessarily! The good news is that you can still find affordable car insurance for teens, and we’ll show you how.
Tips for Saving Money on Insurance for Teenaged Drivers
In truth, most of the ways you can save on teen insurance are the same for how you would save on insurance in general, so even if you don’t yet (or anymore) have teen drivers, the below tips could still help save you money on car insurance!
Tip #1: Do Your Research
Comparison shopping will almost always lead you to a lower rate. Obtaining quotes online is often free and easy, or you could use calculators to estimate costs. You could also contact insurance companies yourself and talk to their agents, or hire an individual agent or broker. The more research you do, the better a deal you could find!
Tip #2: Ask About Teen Drivers Discounts
Yes, there is such a thing! Like other drivers, if teens…
- Have a good driving record
- Low annual mileage
- Take a defensive or safety education driving course
…then they may be eligible for discounts on car insurance. One discount unique to teens is the “good student” discount, which may offer your teen discounts for earning good grades in school. Ask your insurance carrier if they offer such discounts and what grades must be maintained!
Note: There may be even more discounts for your teen, including bundling insurance, discounts for safe vehicles, and for putting multiple cars on one policy. Ask your carrier for details!
Tip #3: Keep Your Teen on Your Policy
Ask your insurance company if it would be cheaper to keep your teen on your policy. Often, this is allowed, and it’s cheaper. Also, consider asking if you can assign your teen to drive your least expensive car to insure (and then ensure your teen actually drives this car!).
Tip #4: Talk to Your Teen About Driving Safety
Just like you should talk to your teen about the negative consequences of premarital sex and drugs, you should talk to your teen about the negative consequences of reckless driving. Or, even better, talk to them about the benefits of safe driving. They will listen to you! What’s more: they will drive like you drive. Want your teen safe behind the wheel? Model safe driving for them. And remember: tell them you’re proud of them when you see them making safe choices behind the wheel!
Tip #5: Make Sure Your Teen Drives a Safe Car
Another tip for keeping your teen safe and ensuring they have a clean driving record going forward is to remove the temptation to make reckless choices by giving them a safe, reliable car instead of an old clunker likely to break down or a flashy new sportscar.
Tip #6: Reevaluate Your Coverage
To save money on car insurance, you can always raise your deductible; however, this carries the risk that you’ll have to pay more in the event of an accident.
Also, think about the type of car your teen drives and the type of insurance it needs. If s/he drives a car chock full of safety features and anti-theft devices, they may or may not need comprehensive and or collision coverage.
Tip #7: Buy Car Insurance Based on Car Use
Usage-based coverage, also known as “pay as you go” insurance, may be a good option. For this insurance type, a device plugs into the car that monitors driving habits and sets insurance rates accordingly. You pay for the coverage as you drive, depending on how you drive. This may be helpful if your teen doesn’t drive much, or if you want to keep them accountable for responsible driving.
Keep your teen driver safe with enough coverage, but consider these money-saving tips!
Talk to your insurance agent about discounts for driver safety courses. You could even take one along with your teen and you could both save! Many can be completed online, like the ones from our partners at ApprovedCourse.com.