Once your teenager has mastered their driving test and received their license, it's time to start shopping for a vehicle and car insurance. Car insurance for teens tends to be more expensive than insurance for adults, partly because teens have so little driving experience, and partly because they are at a higher risk of being involved in accidents. Luckily, there are specific things you can do to lower their rates. Here are five great ways to save on your teen's car insurance:
Choose Their Car Carefully
The make, model, and year of your teen's car will make a huge difference in their auto insurance rate. Generally, a brand new car, especially a flashy or sporty model, will be more expensive to insure than a more modest, slightly older vehicle. You don't necessarily want to go for an old beater either, since a car lacking up-to-date safety features may also be more expensive to insure than a car with anti-lock brakes, air bags, and great safety ratings.
The ideal car from an insurance company perspective is gently used but in good condition, known for safety, and not a flashy sports model. Checking a car's official safety rating before purchase is a great way to keep your teen safer while netting an insurance discount at the same time.
Ask for a Good Student Discount
Most car insurance companies offer discounts for teens who get good grades, typically a B average or better. If your teen is already attending college, they may qualify for a discount if they make the dean's list. The discounts available vary by company, so it's a good idea to let your insurance agent guide you and find the plan with the best discount.
Sign Them Up for Defensive Driving
While your teenager has already had driver's ed, going above and beyond by signing them up for an optional defensive driving class can help snag an additional car insurance discount. By learning safe, defensive driving habits, your teen will demonstrate they are less risky to insure. This is a win-win scenario for parents, since the additional safe driving training will also help keep your teen safe on the road and help instill safe driving habits that will help for years to come.
Bundle Your Policies
While adding your teen to your auto insurance policy will raise your rates, it's typically more affordable overall than having your teen sign up for a separate policy in their name only. Another way to get a lower rate on all of your policies is to ask your insurance agent about bundling multiple policies with one insurance carrier. If your home owner's insurance, life insurance, and auto insurance policies are all with one company, for example, you may receive a discount on all of these policies.
Raise Your Deductible
Generally, the higher your deductible, the lower your monthly premiums, and this certainly applies to teen drivers as well. Raising your teen's deductible to $1000 or higher can decrease their monthly payments, but make sure that you or your teen have the deductible payment set aside in emergency savings just in case. Encouraging your teen to save this money on their own by working a part-time job, babysitting, or walking dogs is a great way to teach financial responsibility while also getting the best possible rate on their auto insurance.
Teenage auto insurance may be less expensive than you think. By following these tips and contacting an experienced insurance agent, you can ensure you get the best possible rate for your teenage driver. For all of your Palm Beach County insurance needs, including teen auto insurance, contact us today.