As the parent or guardian of a young driver, you know it's essential to have good car insurance to protect them. Adding them to you policy, however, can raise your premiums to go up 50 percent… or even double.
Teen drivers have statistically been at a disproportionately higher risk for car crashes. Insurers charge teen driver higher rates than any other group of driver because of these risks.
The list below can help give you some ideas on how to lower your teen drivers car insurance costs.
Go for Good Student Discounts
Students with higher GPA are known to be more responsible drivers. If your teen - or college student under 25 - has a B average or better in school, you may qualify for good student discounts with some insurers.
The amount of the discount varies by insurer and by state. One teen driver could live in one state and get a 35% discount while that same teen driver would only be eligible for a 5% discount in another state.
Take Driver safety courses
Many insurers now promote driver safety courses as a way to teach young driver to be more cautious while driving and you can save big because of it.
Accident prevention classes have been shown to reduce collisions by up to 30 percent. Once your teen completes the program, you may be eligible for a discount from your auto insurance company.
If you have a teen driver who is away at college - usually more than 100 miles - you may be able to get an away from home teen driver discount, though not all insurers offer this.
If your student is between the ages of 23 to 25, then you may not be able to take advantage of this discount so be sure to consult with your insurance agent about this.
Older cars + Teen driver = lower rates
Most young drivers want a new BMW or Lamborghini... but in case that isn’t what you had in mind for your teen’s first car, a gently used vehicle could help you save a few dollars on insurance.
For older cars with higher mileage, liability insurance may be a better option than collision or comprehensive - though it will not cover damages to the car after an at-fault car crash.
Newer cars + young motorists = more safety features
For teen drivers who get newer vehicles, some of the safety features could help lower premium costs.
Safety features like air bags, anti-lock brakes and anti-theft devices are known to help reduce the risk that insurance companies take on when covering teen drivers.
Plus, should your teen driver have a car accident, newer cars will typically offer better protection.
New Technology from Insurers
Several insurance companies have electronic monitors that keep track of driving habits. The device watches for speeding, hard braking, and the hours and distance of car travel.
The family can use these devices to see how safe their driving habits are with online driver report cards.
The driver’s report card that meets certain benchmarks can save up to 30 percent on car insurance premiums.
Let’s face it, no one plans to have an accident. And if crash does happen, premiums could go up 30 percent. If your insurance policy includes accident forgiveness, your rates will not go up following the first at-fault fender bender your teen driver is in.
Learn the risks
Teaching your kid to avoid risky behaviors in the car can save lives and also save you money.
Read the 7 Dangerous Things Teen Drivers Do and 7 Tips to Keep Safe for info on how to help protect your teen motorist