Teenagers are expensive, but totally worth it! Expenses include education, after-school activities, sports, entertainment, and when a teen starts driving, parents typically pay for their car and their car insurance. Car insurance is very expensive for teenagers due to their lack of experience on the road. Statistics show that teenagers are involved in a higher number of accidents with fatal or critical injuries than more experienced older drivers. Here are a few ways you may be able to decrease the cost of auto insurance for teen drivers.
• Check for a good student discount. In the eyes of an insurance company, teenagers who do well in school appear more responsible. Keep in mind that a good student doesn’t mean an honor student. Each insurance company has its own definition of a good student. Your teen may still qualify even if he isn’t at the top of his class.
• You can also enroll your teen in a driver’s education course through your school, even if it is not mandatory in your state. Find out from your insurance company if a driver’s education course will affect the insurance premiums (most will).
• Choose a slightly older and safer model car for your teenager. Teens are naturally attracted to shiny new sports cars, but the insurance costs on sports cars are astronomical. The insurance cost is tied to the horsepower rating of the car as well as the theft rate. Older cars also have a lower book value which in turn reduces the insurance premium. Check this out for a list of safe car suggestions; http://www.iihs.org/iihs/news/desktopnews/safe-and-affordable-updated-used-vehicle-recommendations-for-teens
• Consider raising your deductible. A higher deductible means lower monthly premiums. You can always save the difference in a special account in case you need to draw on it to pay the deductible later in case of an accident or fender bender.
In summary, always be proactive when adding a new driver to your existing insurance policy. Make sure your insurance company knows about your teen driver. Ask questions and do your own research. Discounts are out there if you know where to look.
We’re here to help. Contact us for assistance with any insurance matters, including getting your teen driver covered.