If you think that feeding and clothing that teenager in your house is an expensive proposition, wait till you try to add them to your auto insurance policy. You may suddenly find your perfectly balanced budget knocked squarely on its keister and be looking for ways to economize. Before you cut the cable and prepare yourself for an all rice and beans diet, take a look at this list of ways that you can keep the cost of insuring your new driver low.
Put your new driver in the right car – Insurance rates are based not only on the driver but on the vehicle itself. Cars with higher safety ratings will cost you less to insure. Cars like this will also provide additional peace of mind as you launch your little one out solo.
The right car might also mean that your darling doesn’t start out with a shiny, brand-new one. Older cars cost less to insure and, if it is paid off, will only require liability coverage.
Encourage good homework habits – Many insurance companies believe that good students make good drivers and therefore offer discounts for good grades. If your insurance company offers such a discount, this can be an easy way to teach your teen about the value of hard work.
Determine how much your teen will be using the car – If your child is headed for college and won’t be taking a car along, let your insurance company know. You may qualify for a “distant- student” discount if your student will not be driving during the school year.
Take advantage of tech toys offered by insurers – Many insurance companies today have new technologies that can be attached to cars to monitor driving behaviors. Favorable recordings of how the car is handled can result in discounts of up to 30%. As an added bonus, your child is apt to make wiser decisions while driving if they know someone’s watching.
If you haven’t before, consider bundling your insurance – Most insurance companies offer deep discounts to customers to carry multiple policies with them. If you are not insuring your home, boat, life, health, auto, etc. through the same company, investigate the possible savings if you did. The time you spend switching your policies could save you thousands.
Don’t hesitate to shop – If you haven’t priced insurance in a while, you might be surprised at the wide range of prices charged for the same coverage. Also, don’t hesitate to let your agent know that you are shopping. You might be surprised how diligently he will assist you in your search for discounts.
Save money on your teen (and yourself) – numerous states offer insurance discounts for drivers who have completed an approved driving safety course. In some states, it is your teen who will qualify, and in others, it’s you. Check out the laws where you live and see what you could save.
To make that last tip easy, head over to ApprovedCourse.com for information about how a quick and convenient online course could put money in your pocket.