Have a Teen Driver? Learn How to Save Money on their Car Insurance

Boca Raton (Fla) — Premiums can rise from 100 percent up to 355 percent when parents add teens to their auto insurance policies. This is even if the teen drives the family minivan.

There are many ways that teens can get lower premiums. Numerous insurance companies offer tutorials online that teens can take, and companies will give substantial discounts if they pass. State Farm offers an online tutorial called “Steer Clear”, which if passed by a new driver, will provide a 15% discount for first-time drivers. Other insurance companies offer similar discounts to teens through online programs. Clean driving records are eligible for discounts at Esurance, an online auto insurance company. A clean driving record does not mean that you have been convicted of speeding.

Here are some insurance tips for teens and their parents, according to Statefarm.com

Compare prices and discounts from different companies to find the best price for you.

You should be aware that adding a driver to your policy will usually increase your insurance rates. It is better to allow your teen to drive one of the family vehicles if you do not plan on adding another vehicle.

Get student discounts. Students enrolled in accredited colleges, universities, and high schools can receive discounts in most states if they have a minimum grade point average of B or higher.

Talk to your teenager about safe driving habits, and how traffic violations can increase rates.

You might want to research which cars get the best rates if you’re looking to buy a new car for your teenager.

Insurance companies use three methods to rate cars for damage, safety, and liability.

1. The Damage and Theft Index, (DTI), rates vehicles based on the cost of theft and damage.

2. Vehicle Safety Discount (VSD): Discounts up to 40% for cars that have lower insurance costs for injuries to the occupants of the vehicle

3. The Liability Rating Index (LRI) rates vehicles based on how much damage or injury they cause to other vehicles and their occupants.

A Personal Liability Umbrella Policy (PLUP) might be worth your consideration. You could be sued if you or your teenage driver injures or damages someone’s property. Although your underlying policies may have substantial liability limits, juries are not afraid to award damages that go beyond those limits.

Insurance companies will consider many factors when quoting you a premium. The type of car you drive, where you live, how long you have been driving, your driving record, and your credit history are all factors that insurance companies consider when quoting you a premium for you and your teen. If you live in an area that has high auto theft rates, your rates are likely to be higher than someone who lives in the suburbs.

These are some other ways you can save money on car insurance for your teenager.

Many companies offer an Anti-Theft Discount on cars with car alarms or other security measures.

To improve your chances of getting a lower rate, take Driver Improvement Courses if you have ever been convicted for a moving violation. These courses are available online for many.

If teens complete Drivers Education courses through their school or an accredited agency, they may be eligible for discounts.

You can get a discount on your car insurance if you have a vehicle with airbags, antilock brakes, headrestraints, and daytime headlights.

Car insurance can be very expensive, as everyone knows. However, there are ways to cut the cost if you ask.