Two million teens will learn to drive this year. Your family insurance rates will rise dramatically if one of these teenagers is you. Why? Insurance companies claim that teens are twice as likely to be involved in an accident than their adult counterparts.
Your insurance premiums will increase when your teen drives, but you can lower them by 10% to 15%. You can do this by registering your teen as an “occasional” driver. The principal driver is the person who drives the car most often. All other drivers are considered occasional drivers which can translate into a substantial discount. If you own more cars than your parent drivers, your teenager could be designated as the principal driver.
Another way to save money is to designate your teenage child as the driver of an older used car and cancel collision coverage. This will reduce your insurance costs. Many top insurance companies offer discounts up to 10% for teenagers who have good grades. Insurance companies do not check each semester so one honor roll appearance may not be valid for several years.
It might be a good idea to have your teen complete and pass a driver’s education course. The Insurance Institute for Highway Safety has reservations about the effectiveness and safety of driver’s education for young motorists. Although some people believe driver’s education doesn’t necessarily lower the risk of a young driver being involved in an accident, it can help to reduce teenage drivers’ auto insurance rates.
Certain states require insurance companies to offer discounts to teens who have completed driver’s education courses. Parents might actually save around 10% by asking. If your teen driver is not a vehicle owner, you may be eligible for a deduction of up to 5%. To qualify for the discount, your son or daughter must be located at least 100 miles from home (and from your cars). The rate reduction applies to all years, not just for your child’s academic year.
It’s important to save money on insurance for teens drivers, but it’s even more important to ensure their safety on the roads. There are a few things you can do to help both. A top-of-the-line car for a teenager is a risky purchase. A larger, older car will help protect your teen driver and lower your premiums. Consider buying government vehicles. These vehicles are often auctioned off regularly. Although they may seem a little boring and boxy, they are generally well-maintained.
Another way to save money is to wait a year before allowing your teen behind the wheel. As you get older and more mature, your safety chances increase dramatically. This in turn reduces your premiums.
Another tip is to have an evening curfew when driving. Night driving is much more dangerous than day driving. By setting an evening curfew, your teenager can drive during daylight hours. This will allow them to have a safer driving experience.
These money-saving strategies work for any driver, but they are particularly useful if you have a teenager to insure. It is easy to compare quotes online. The prices for the same insurance coverage may vary greatly, sometimes by as much as half, depending on which insurance company you choose. Comparing the insurance offers from different companies could help you cut down on your insurance costs by up to half.