TUESDAY, MAY 17, 2011
If you're the parent of a teenage boy or girl who has reached the driving age then you probably already have enough headaches of your own. Don't let paying for expensive teen car insurance create a financial headache as well. Finding cheap car insurance for teens may seem impossible, but there are several ways to minimize the costs once your teen starts driving.
Tip #1 - In most cases, it's cheaper to add your teen to your current auto insurance policy rather than getting a separate policy for your teen. This is probably your best option if your cars are safe and relatively inexpensive to insure, or if you buy your teen an older, safe car. If you or your teen tries to get car insurance on their own it is likely they will pay upwards of 2 to 3 times as much as they would if they were listed under your policy.
However, if your cars are expensive to insure and you cannot assign drivers to specific cars, the cost of adding your teen could turn out to be much more expensive. Some companies will allow you to assign specific drivers to each car, rather than assume all drivers have access to all cars. If yours will allow this, you may be able to assign your teen to the car that is cheapest to insure.
Tip #2 - Make sure to get all the discounts your teen driver may be eligible for.
- Good Student Discount - Most companies offer a discount for students with at least a "B" average (3.0 GPA). The requirements can vary so ask your agent for specifics. Companies see these teen drivers as more responsible and present a lower risk for claims. Discounts can range from 10% to 25%.
- Driver's Training Course Discount - Lots of insurance companies offer discounts of up to 15% to teens who take (and pass!) an approved driver’s education or training course.
Do not wait for your teen driver to get a speeding ticket or into an accident before enrolling them in a defensive driving course. This will also help them learn many skills that can keep them out of accidents which will help keep your insurance costs down in the future as well as keep them safe on the road.
- Low Mileage Discount - If your teen only drives around town or to a part-time job, the miles driven may be lower than average. These discounts can range from about 5% to 15%, depending on miles driven. This may also apply to students that are away at college or studying abroad.
You have to make your insurance company aware of these situations when they arise. Most companies are not going to be proactive about lowering your rates if they can help it. It's up to you to make sure you get all the discounts you and your teen are eligible for.
Tip #3 - If you're buying a car for your teen keep the cost of insurance in mind. Used cars are cheaper to insure than new ones. Remember having extra safety features can also qualify you for discounts so look for one with a good safety rating as well as air bags, anti-lock brakes, and other safety features that qualify for discounts. There are many reliable used cars out there that are just as safe as the new models and will cost less to insure. Another benefit is you can choose not to add comprehensive and collision coverage on the vehicle. This can drastically reduce the cost of your premiums.
Tip #4 - Don't assume you will get the best rates from your current insurer, even if you've been a loyal customer with no claims. Insurance rates for teens can be vary tremendously between companies. You should talk to multiple companies to get a list of all the discounts they offer and how much you can save on each. Also, get quotes both for adding your teen to your policy and for getting a separate policy.
Every six months, check in with your insurance company and update your policy information to make sure you are getting the best teen car insurance rates. Keeping a clean driving record after a certain amount of time could get you discounts. Graduating from High School could lower premiums too.
Tip #5 - Before you even start thinking about your teen, make sure you are getting all the discounts you deserve. These can include multi-auto discounts, multi-policy discounts such as home and auto policies with one company, safe driver discounts (some companies offer discounts for every year a driver goes without filing a claim), and discounts for safety features (many insurers offer discounts for certain safety features in your car, such as anti-lock brakes, automatic seat belts and air bags). If you're not receiving all of the discounts you believe you should be, talk with your agent. Some of these discounts may also apply to your teen's coverage.
Always ask for specifics when requesting quotes and inquiring about discounts. In addition, consider having your teen pay at least a portion of your increased insurance cost as a way to encourage safe driving and responsibility. If your teen’s safe habits result in lower future premiums, pass on the savings to your teen. Insuring a teen driver can be expensive, but following these tips can help ensure you are getting the best teen car insurance rates available.
Talk to one of our agents to find out how much you can save on teen car insurance or get a free instant auto insurance quote right now.
By Matt Reynolds - Google+
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