The same question is asked by parents of teens who have just been licensed to drive. How can I lower my teen driver’s insurance premiums? These are the top three methods. This is what our Columbus Ohio Independent Insurance Agency suggests to parents of new teens who are driving.
1. Shop, Shop, Shop. You can find rates from many insurance companies when you shop for insurance. This will help you determine what a good rate looks like and what a bad rate looks like. Most people have a hectic life and are not able to shop for auto insurance from multiple companies. I know it takes time and energy to shop at multiple insurance companies. There is a way around this. Look for an independent agency in your area to do the shopping. Independent agents often have relationships with multiple insurance companies so they can obtain rates from many insurance companies. Instead of calling multiple agents to get your information, you can call an independent agent. You will only need to provide your information once.
2. Our Columbus Ohio independent insurance agency will inform all our customers to maintain a clean credit history. Your insurance premiums will be influenced by your credit score. Insurance companies will use a credit score to determine the household head. Customers can choose to have the head of the household be either the husband or the wife. Let me show you an example. Let the agent know if the husband has been in bankruptcy and that the wife has a 750 FICA rating. He can then use the wife to be the head of the household. You will get better rates if you have better credit. If the household head has excellent credit, then the teen driver will be able to benefit from the good credit. Keep a high insurance credit score by paying all bills on time, making sure that your financial accounts are in order, and keeping your credit card balances low. Keep the balance below 25% of your credit card limit. Example: A $1000 credit card will not allow you to carry more than $250. These are the most important factors that affect your insurance credit score.
3. You can expect your teen driver to cause an accident. These are the odds. There is no way around it. What should you do if you are a parent? Get your teen driver a less expensive car. It is best to get a car you can afford. Your teen driver will be able to learn how to drive if you get a car that isn’t too expensive. You will love your new teen driver. However, they don’t need a supercharged 375HP muscle car. Before they reach 17, your new teen driver will have their car wrapped around a telephone pole. It’s just the odds. What can you do? You can get the car that you paid cash for and only liability coverage. Comprehensive and Collision are the two largest expenses in teens’ rates. You can reduce your premium by avoiding Comprehensive and Collision coverage. Why are they so costly? They will be in an accident again, but that is normal. Keep them away from cars that have full coverage until they prove that they are capable of driving.
Another thing to remember is that discounts are available for new teen drivers. Ask about teen driving and good student courses. An independent agent can tell you which discount each company offers.