Posted on: 7 November 2017
If your teen just got their driver's license, you'll want to start shopping for auto insurance. You may be surprised to find that teenage drivers pay the most for coverage. There are many reasons for high insurance costs.
Due to their inexperience, and sometimes reckless behavior behind the wheel, teens are involved in more car accidents than other demographics. Also, driving is one of the leading causes of accidental death for teens. Since driving teens have higher rates of accidents, insurance policies typically cost more to compensate these damages.
Here's how you can help your teen keep these costs down.
Take Advantage of Good Student Status Discounts
A fantastic way for teens to lower their insurance rates is to maintain good grades at school. Many insurance companies offer discounts for a good student status. What constitutes this status is dependent on which carrier you choose.
For example, some students only need to show their insurance provider's a report card that confirms at least a B average. Other providers may only need to show provider's an honor roll with a letter signed by a school administrator. Sometimes the benefits extend further if a child is able to show top percentiles in ACTs or SATs.
These discounts may just last for high school, while some discounts can last all the way until college. You'll want to have your teen to work hard to qualify for this discount, as it can often save between 15% to 25%!
Ask the Insurance Company About Defensive Driving Course Discounts
Your teen may be sick of driving classes after getting their license, but defensive driving classes should be taken advantage of. Many auto insurance companies will provide discounts to teens who've taken these classes since they are less likely to engage in reckless driving.
These programs vary by state, so you will have to see what type of class will qualify for a discount. Some classes have lighter coursework and can be done online. Some classes are more intense and require teens to do classwork and practice driving.
Talk to your state's Motor Vehicle Department to find a class. Once the course is completed, you'll need to provide your insurance company with a certificate of completion from the school your teen attended.
Bundle Your Auto Policy With Your Teen's
Most insurance companies value customer loyalty. If you bundle different insurance policies together from one company, you'll likely get a discount. Instead of getting a separate policy, many carriers will let you just add your teen to a pre-existing policy—especially if you are all using the same car to drive.
Let Your Insurance Carrier Know Exactly How Often the Teen Will Be Driving
Some insurance carriers will offer discounts for teens who are rarely driving. Since these teens aren't driving often, they are at a lower risk for accidents and their efforts are more eco-friendly. If your teen is going off to college far from home or out of state and isn't driving regularly, again, they may qualify for a discount.
Share the Load
If insurance prices are still hefty even with discounts, encourage your teen to get a part-time job to help with these costs. If he or she is driving regularly, then it can be a great learning experience to carry some of the insurance responsibility. They will know that if they get into an accident, then their premiums—and what they will have to pay—will likely go up! Added costs mean that they will be more defensive in their driving.
As you can see, even though it can be expensive to get auto insurance, there are many ways to mitigate the costs. Even just asking your insurance carrier for a discount may lower your teen's monthly premiums if it means you won't take your service elsewhere.
Contact an insurance company in your area for more information.Share