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Five tips for saving in Car Insurance for Teen Drivers

The day has finally come. Your teen is about to get his or her driver’s license. This is a day of dread and a day of glee. You will no longer need to be the chauffeur for your child but your child is now going to get access to the family car or maybe a car of his or her own.

And, because teens are considered high-risk drivers by car insurance companies, they face higher rates to offset the risk. With that in mind, here are some options for finding ways to help keep your car insurance premiums from hitting the roof.

  1. Comparison Shop to Find the Best Rates

With so much competition between insurance carriers and the ease of obtaining online car insurance quotes, it’s silly not to take advantage of the situation. However, don’t sacrifice coverage for price. Cheap insurance doesn’t always mean reliable insurance.

  1. Add Your Teen to Your Policy

See if it’s cheaper to add your teen to your policy, or to purchase a separate policy. In most cases, the first option is less expensive. This is especially true if your carrier permits you to assign your teen to the car that’s least costly to insure; if you do so, make sure your teen primarily drives that vehicle.

  1. Look for Teen Driver Discounts

Discover what discounts may be available to your teen. Do this for your current carrier along with other providers. Common teen discounts include:

  • Taking driver safety education course.
  • Good student discount for teens who’ve gotten at least a “B” average.
  • Low annual mileage.
  1. Stress Safe Driving

Be sure your child understands that driving recklessly endangers lives. And, that breaking traffic rules or causing an accident could result in a suspended driver’s license and higher premiums. Make sure to:

  • Be a good role model. If you expect your teen to drive safely, model the right behaviors behind the wheel.
  • Set ground rules. Be explicit about what your child can and can’t do when it comes to driving. If you don’t want him driving after a certain time of night, make sure to say so and enforce the curfew. Set rules for cell phone use, implement a zero tolerance drug and alcohol policy, and make sure to follow your graduated driver’s license laws.
  • Educate your child on safe driving. Continually monitor your child’s driving and teach them the right behaviors when you notice the wrong ones.
  1. Increase Your Deductibles and Adjust Your Coverage

Choosing higher auto deductibles carries some risk, as paying a deductible after an accident could outweigh any premium savings you might have accrued prior to that point. But, it’s something to consider, as it might get you a lower premium.

Most important, talk to your teen about the responsibility that comes with driving. Share how much their insurance costs so that they can understand fully the responsibilities they have as a driver and remind that driving is a privilege not a right.

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