The Importance of Insurance

Teen Driver And Auto Insurance: Tips To Save Money

17 February 2021

Katrina Terry

So, the day has finally come and your teenager is about to start driving. As much as this day is anticipated, it is also feared. Aside from having to get a car for your teenager, you also have to ensure that your teen and the car are both properly insured. More than likely, you have probably heard that insuring teenage drivers is expensive. The reason behind this is because insurance companies view teens as higher risk. The good news is that there are a few things you can do to help ease the cost of insuring your teen driver. Read on to learn what they are.

Add Your Teen to Your Existing Policy

While your teenage child may want to be independent already and get their own insurance policy, it will be cheaper to add them to your existing auto insurance policy. This is particularly true if you have had your policy for some time and have maintained a solid driving record.

Increase the Deductible

While this may not be an option for everyone, you should consider taking a look and your policy and see if it is possible to increase your deductible. Your deductible is the amount that you would pay out of your own pocket prior to your insurance company stepping in and paying for the remainder of a claim. Raising your deductible can reduce your overall premium, but it is important to ensure that you are able to cover the deductible amount in the event of an accident before you decide to increase that deductible.

Take Advantage of Discounts

There are numerous discounts available for those who are adding teenagers to their policies. For instance, if your teen makes good grades, then you can likely take advantage of the good student discount. If your teen driver is a bit older and is about to leave for college, you may be able to get a discount for a distant student. Usually, this discount will require that your child is attending college at least 100 miles away and will not be taking their vehicle with them, which is why you are receiving the discount. There are other potential discounts that you may be able to take advantage of, so speak to your insurance agent.

Select Your Teen's Vehicle Wisely

The vehicle that your teen drives will play a significant role in the amount you pay for insurance. While your teen is likely to have their opinion on the car they drive, opting for a safer used car over a brand-new shiny sports car will help you save money on insurance rates. Used cars do not have to be banged up and ugly, though, as you can get a nice used car for your teen for an affordable price. In addition to ensuring that the car is in good shape, make sure to pay attention to safety ratings, as this will bring the insurance premiums down.

For more information, contact a car insurance company in your area.

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