Car insurance for young, inexperienced drivers isn’t cheap, and for good reason. Teen drivers between the ages of 16 and 19 are more likely to be involved in accidents than any other age group, as stated by Webb Insurance. For parents with teens who are fast approaching driving age, learning how to save on teen car insurance is a must. Many parents benefit from the following ways to save on teen car insurance:
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- discounts on driver training.
- make sure your teen gets good grades.
- have a safe car for your teen.
- In-vehicle telematics installation.
- search policies.
- teach safe driving habits.
- looking for student discounts.
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discounts on driver training
Because teens have no experience behind the wheel, many insurance companies offer discounts for teens who have completed a driver training program. Whether you enroll your new driver in a driver education program through your high school or one offered through your state, making sure they know what to do when you hit the road can help you save on auto insurance.
A driver training program can also give you peace of mind when handing over the car keys to your teen. Talk to your insurance provider about which driver training programs they offer discounts on, as it can vary from company to company.
keep good grades
While encouraging your teen to get good grades can help them get into college and find employment as an adult, it can also help them get a lower rate from their auto insurance company. ramsey solutions tells us that maintaining at least a b-average can help lower the rate you’ll pay when you add a teen driver to your insurance policy.
If your teen is on the dean’s list or honor roll, please share that information with your insurance provider, as it may also help with lower rates. until your teen turns 25, getting good grades could earn you a discount ranging from 5 percent to 15 percent, depending on the provider.
drive a safe car
The vehicle you choose for your teen can affect your insurance premium. Certain vehicles, like sports cars, already pose a higher risk to insurance companies. therefore, putting a teenager behind the wheel of a vehicle that the company considers high risk will increase the amount you pay each month for insurance. Many insurance providers consider these vehicles to be the safest options for teens:
While your teen isn’t required to drive one of the vehicles on this list, a four-door sedan will help you save the most money on teen auto insurance.
Installing telematics in the car your teen drives can help lower their monthly insurance payment. According to Money Talks News, insurance providers can use telematics devices to track your driving habits. Talk to your insurance company to find out if they have a device they can install in your vehicle that tracks things like your braking habits, driving speed, the average distance you travel, and how often you drive.
If you allow the company to track this data, you could save money because they will see how safe you are when you get behind the wheel. Of course, they will also collect this data for your teen.
Even if you have a great insurance provider, before you add your teen to your policy, you may want to shop around. Each insurance company offers different rates and discounts, so get quotes from other auto insurance providers to see how they compare. Thanks to the internet, this can be a quick and easy process. Plus, getting quotes doesn’t mean you have to commit to any of the vendors you consult with.
Most insurance companies have discounts you can take advantage of, which is important when adding a teen to your policy. bankrate shares that these companies often have better rates for parents with teenagers that should be added to an insurance policy:
These companies can help you save money when it comes time to add your teen to your policy.
teach good driving habits
Just as you teach your teen to look both ways before crossing the street, you should teach your teen to be a good driver. While this may sound easy, you’ll first need to examine your own driving habits. Before you can teach someone else to be a good driver, you must set an example by being yourself. When driving, be sure to stay within the speed limit, use your turn signal, and come to a complete stop at stop signs.
When you demonstrate these good driving habits, you’ll find that your teen driver is more likely to adopt them too. Having a clean driving record with no accidents or moving violations is one of the best ways to get a low rate on your car insurance. If your teen can drive without having accidents or other violations on their driving record, they’ll end up with a much lower rate while on your policy.
looking for student discounts
When your young driver heads off to college, you can get a discount (called a student discount) if you don’t bring a car. On the same note, if your teen goes on a trip or doesn’t drive for a certain period, let your insurance company know, as they may give you a discount. It’s also important to note that if your teen drives an insured vehicle for less than 25 percent of the time the vehicle is on the road, he may receive a lower rate.
Car insurance is important for your teen driver. Teenagers are more likely to be involved in accidents and have been shown to be a higher risk to insurance companies. See how to save on car insurance for teens before they take this big step toward independence.