The day has come and your “baby” is now getting a driver’s license. What should you do? First of all, be prepared to spend more money. That is inevitable. Teenagers, even the most responsible ones, have the highest insurance rates. Unfortunately, they often make unwise decisions because they don’t have years of experience on which to rely. But there are some things you can do to keep those insurance rates from skyrocketing.
Compare having separate policy
Many people rush out and buy their teenager a separate auto insurance policy, but sometimes that will cost you more money. Most insurance carriers offer multiple car discounts. Before you purchase, compare!
Buy an older car for your teen driver
The rates are lower on a used car. Let’s face it, the reason insurance rates are so high for teen drivers is because they often total their cars. Depending on the age of the vehicle, it may not make sense to have full collision and comprehensive coverage.
Consider a High Safety Rating Vehicle
Vehicles with high safety ratings are less expensive to insure. Even though your teen might be set on a speedier style of vehicle, the cost savings can be substantial. Do a little research and find out which cars have better ratings. Even if your teen does not cause an accident, you probably still want them to be safe!
Increase your deductible
If you can pay a higher deductible, then increasing the deductible will save you money in the long run.
Ask about Occasional or Pleasure Only driver discounts
Many insurance companies will allow you to put a teen driver on the policy as an occasional driver. Most often, this happens when a child is away at school and won’t be around to drive the car often. Listing your teen driver as a primary driver will usually increase rates.
Good Student Discount
Is your child a good student? If your child receives an A (or sometimes B) average, many companies offer a discount for teens who have good grades.
Enroll your teen in a Driver’s Education Course
Even if your state does not require formal driver’s education instruction, many insurance companies will give your teen a discount for taking these courses.
Additional Driver’s Training Course
If your state does require Driver’s Ed, then they might not give a discount. But they usually give discounts if you participate in additional training course. Even if they don’t, it won’t hurt and may just save your teen driver from getting in an accident.
Looking for car insurance for your family or your teen? Live in California? Let us help you find the lowest car insurance rates for your teen.