It can be costly to add a teenager on your car insurance policy. Young single men, especially those under 25, tend to have the highest auto insurance rates. While it may seem tempting to let your teenager drive the car, this is unlikely to be a popular choice. You can still maintain a positive relationship with your teenager driver and get car insurance without going broke. Here are some ways to save money.
Safe Driving pays Off
It is easy to reduce your chances of being involved in an accident or other moving violation by using your seatbelt and keeping within the speed limit. Encourage your teenager to complete a driver’s education course, even if it is not necessary. If they are involved in a claim, you may want to reward safe driving with an incentive or disincentive.
Young drivers may see their insurance premiums rise because of a drunk driving conviction. It is worth sitting down with your teenagers or college-aged drivers to discuss the consequences of a DUI. Driving under the influence of alcohol is expensive. In New Jersey, for example, the cost of a single DUI for an underage drinker can reach $24,000 (source: Municipal Alliance for the Prevention of Substance Abuse). This could lead to higher insurance premiums and legal fees as well as other penalties. According to David Snyder, the American Insurance Association, a young man convicted of DUI could see his insurance premiums rise to thousands of dollars over the next three years.
Get Discounts
Discount for Good Students. Many insurance companies offer discounts to students who are less than 25 years old, have a minimum 3.0 grade point average (or better) and are full-time students in high school, community colleges, or universities.
Discount for Young Drivers. A local accredited driver safety course may offer a discount or help remove points from a young driver’s license following an accident or violation. For information about where to take driver safety classes, check with the National Safety Council. You can also find information about state-certified programs that offer driver safety courses, discounts on car insurance, point reduction, and drivers education classes.
Community Involvement. Insurance companies may offer discounts to young drivers who are involved in civic or community organizations such as Scouting or volunteering at a local hospital. Insurance companies want to see evidence that a young driver poses less risk and will reward those who give back to their community. Ask for companies that recognize community involvement when you are doing comparison shopping.
Discount on Anti-Theft and Safety Features. It’s possible that your insurance rates will drop if you have anti-theft devices such as an alarm system, a protective steering column device, or certain anti-theft recovery methods. Cars with safety features such as anti-lock breaks and automatic seat belts are often eligible for a discount on their insurance rates. Side-impact airbags can also be helpful.
Select Your Car Wisely
How much you pay for your premiums will depend on the type of car you drive. Auto insurance premiums can be cut up to 50% by choosing a safer vehicle. Insurance companies consider SUVs, luxury cars, high-performance cars and sports cars to be more risky and will charge you more to insure.
Explore Your Options
Do your research to find the best auto insurance rate for your young driver. You may be happy with the current company you have, but it’s a good idea to compare other companies. You could end up paying hundreds more than you need if you don’t.
