If you have a teenager under your roof, we don’t have to tell you that your car insurance isn’t cheap. On average, teen drivers with their own policy pay more than $5,000 each year for insurance. That’s why most teens add to their parents’ policy: It’s cheaper, but it’s probably double the parent’s car insurance rate. ouch!
If those prices make you want to force your kid to ride a bike everywhere, we don’t blame you. But you can’t keep your teen off the road forever! The best thing you can do is teach them the ways of the road and find ways to save on junior car insurance. we can help you with that last part!
6 Ways to Save Money on Car Insurance for Teens
We asked Brandon, one of Dave Ramsey’s recommended independent insurance agents in Montana, for some simple ways his teen can lower his auto insurance rates. this is what she had to say.
1. get hands-on experience
according to the cdc, car accidents are the leading cause of death in the us. uu. teens and inexperience top the list of leading causes of teen car accidents.2 Learning the rules of the road can help your teen stay safe and earn plenty of extra credit in the process.
“driver’s education always helps,” says brandon. “Carriers offer discounts for taking driver’s education or any other public safe driving course offered by the state.” ask your insurance provider which driver education programs qualify for a discount in your area.
2. hit the books
Most parents have college in mind when encouraging their children to do well in school. But did you know that your teen’s report card could also save you money? It’s true!
So, how stellar should your teen’s grades be? “It’s going to vary from state to state, but a B average or higher will definitely help with rates,” Brandon says.
3. Resist that new car smell
Dave never recommends buying a new car because the value drops as soon as you pull it off the lot. But new cars also cost more to insure because the parts and technologies are more expensive to replace if you crash.
Also, giving your teenager the keys to a new car is like signing a loan with your broke cousin Joey for his latest business venture – it’s a very bad idea.
so brandon suggests buying a used car for cash. bonus points if you choose a used car that is also known for its safety. in fact, you can save 18% on auto insurance by buying a five-year-old instead of the new model.3 “The older the vehicle the teen drives, the lower the rates,” he says.
Our car guide can help you get the best deal on the car you love!
4. track your driving habits
“A lot of companies are rolling out extra discount features where they rate drivers based on their driving tendencies instead of a matrix that says you’re 18 years old driving this vehicle,” says Brandon.
here’s how it works: connect a device to your vehicle and drive with it in your car for 30 to 90 days. Insurers look at things like daily mileage, harsh braking, rapid acceleration, and the time of day (or night) you drive, all of which can affect your risk. for teens, that can be an incentive to hit the brakes and drive more safely.
so, is it worth it? some insurers take $25 off your premium just for trying it out, while others may offer a 50% discount at the end of the trial period for super safe drivers.4
5. don’t base your decision on price alone
We love saving money as much as anyone, but you can’t put a price on your child’s safety or, for that matter, their sanity.
Here’s the thing: Half of all teens will be involved in a car accident before they graduate from high school, according to the National Safety Council.5 So, at some point, your teen may have a car crash. if that happens, he will want to have the proper insurance. That means having the right amount of liability insurance and other coverage to protect your teen. Plus, you’ll want an advocate who will fight for her best interests throughout the entire claim process.
That’s where an independent insurance agent comes in handy. an independent agent will take care of your claim until the end. there is no way to move to a call center where you will never speak to the same person twice. there is no way to confront the adjuster. just good, honest customer service from start to finish.
“we are here in your community. our kids go to school with your kids,” says brandon. “I see many people who get frustrated when a claim is denied because the captive or online agent is not available to them. They never fully understand or explain the process or why it is or is not covered.”
6. work with an independent insurance agent
Of course, working with an independent agent can also save you money. that’s because you’re not limited to options from just one provider. With access to an entire network of insurers, an independent agent can help you find the best coverage for your family at a price that fits your budget.
Looking for a great deal on auto insurance? we can help! Dave’s Insurance Supported Local Providers (ELPS) are experts who have a solid track record of providing excellent service. in fact, many people who work with our recommended professionals save hundreds of dollars on auto insurance or get much better coverage for about the same cost. find your elp today!
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