It’s hard enough to teach a teenager how to drive, but it can also be difficult to figure out how to save money on teenage car insurance. There are many ways to get auto insurance discounts for teenage drivers if you do your research and compare shopping.
Young drivers are most likely to be charged more for insurance, but the rates will drop over time. It’s essential to learn where you can find discounts and which insurance companies offer the best coverage for your teenager.
Why teenage drivers are more expensive to insure
The cost of insuring teen drivers will depend on whether they are added to your insurance policy or their own. An 18-year old driver would pay $5,335 per year for full coverage. This is more than three times the national average $1,738 per year for full coverage for a driver aged 40. In most cases, adding a teen to your policy will make it less expensive overall.
High premiums are due to the fact that teens tend to drive more recklessly than adults. According to the CDC, a other drivers. However, teen driver discounts or other measures may help to lower your costs. Premiums may be reduced by driving behaviour programs, student discounts, and telematics. These are just a few of the discounts you can take advantage of:
Good student discount
Are your kids a top student? Car insurance companies often offer discounts to teens who are attending college or high school and have top grades. Allstate, for example, offers a great student discount to non-married drivers under 25 who have at minimum a B average. Your premiums can be significantly affected by the good student discount. State Farm, for example, offers 25% savings to students who have good grades up to the age of 25 or in your final year of school.
Register for a safe driving class
Rates can rise significantly if a teenager has an accident on their driving record, especially when compared to other drivers of similar age. Insurers now offer driver safety courses to help young drivers learn the rules of the road. They also offer discounts for teen drivers. Geico, Allstate, Allstate, and Travelers all offer premium discounts to drivers who complete required driver safety training.
Distant student discount
Your young adult driver who lives far from home and leaves their car in your driveway may be eligible for a distant student discount. Many insurance companies offer a discount for students who live within a certain distance (typically 100-miles). Combining this discount with the student discount is a great way to save.
As with the distant student, ask for a low mileage discount if your teen drives a small number of miles per year. Nationwide, for example, offers the pay per mile option through its SmartMiles program. This provides coverage with a premium which changes based on how many miles are actually driven.
Take into account the car of your teen.
Teen drivers might dream of owning a Ferrari or Porsche, but it is unlikely. It’s more likely that their first car will be a small, used sedan. A broken-in car can be a great way to save money on insurance.
Newer cars can help you save money on insurance. Newer cars come with safety features such as anti-theft devices and airbags. These can help lower your premiums, or allow you to qualify for special discounts. Some features may not be available in older cars.
Telematics can be a great tool!
Modern technology makes it easy to monitor your teens as they drive. Many insurers offer electronic devices that can be used to monitor teens’ driving habits.
Allstate offers the Drivewise program where a small device can be installed inside the vehicle. This information includes how many miles your car has traveled, how fast it drives, how long the car has been on the road, and how frequently you apply the brakes hard.
How to find teen driver car insurance
It is crucial to know which carriers offer teens the best discounts and provide adequate coverage. Comparing quotes not only is important but it also allows for you to compare coverage to ensure that your teen has sufficient insurance coverage at an affordable price. Many insurance companies will also work with you in order to get the best insurance discounts available for teens drivers.
These are some of the Bankrate ranked the best for teens drivers.
- Geico: Geico is distinguished by the youth-specific discounts that are offered to teen drivers. This includes multi-policy and good student discounts.
- State Farm – State Farm allows your teenager driver to take advantage a variety of discounts that are geared towards them, some of which may last until college.
- Progressive: Progressive has the Snapshot program. This telematic program monitors teens driving habits and rewards them with lower teenage insurance premiums. This can be beneficial for safer teens.
- Nationwide: Nationwide offers a variety of discounts for teens including a distant and good student discount, as well as access to the Nationwide SmartRide program that monitors safe driving habits.
Questions frequently asked
Which is the best auto insurance company?
When choosing a car insurer, there are many things to consider. These include average annual premiums, optional coverages, and digital assets. Bankrate recently reviewed top car insurance companies. State Farm was ranked highest with a score of 3.93/5. This is based on premiums and financial ratings, as well as high customer service scores.
Which car is best for teens?
When determining the cost of teenager insurance, it is important to consider what vehicle your teen drives. It is important to consider safety features as well as the cost of insurance. Both the 2012-2016 Honda Civic and 2012-2014 Toyota Camry rank highly for safety and reliability.
Do I need to add my teenage son or daughter to my existing policy
A 16- or 17 year-old will be less expensive to insure if they are added to an existing policy than if they have their own. Another effective strategy to reduce teenage car insurance is this.