On one hand, your teenager becoming a driver is convenient since they can now get themselves around. On the other hand, it can also add extra expenses to your life, from helping them buy a new car to adding them to your insurance. In fact, adding a teenager to your car insurance policy can cause your rates to skyrocket by around 50% according to the Insurance Information Institute. Luckily, there are things you can do to lessen the impact adding a teen driver has on your insurance rates. Here are five ways to lower car insurance premiums for young drivers:
Get Rewarded for Good Grades
Most insurance companies offer discounts to high school or college students who earn good grades, usually a B average or better. Call your insurance company to see what their policy is and ask how they would like you to submit the proof of your child's good grades.
Sign them Up for Driving Lessons
You may be tempted to save money by teaching your teenager to drive yourself, but paying for driving school can qualify you for a discount on your insurance premium. Even if they already have their license, consider signing them up for a defensive driving or safe driving class. They will become an even better driver, and you will get an insurance discount to boot.
Add a Tracking Device
If you know that your teen is a safe, responsible driver, see if your insurance company offers a "telematics" device, which is an electronic tracking device that monitors their driving. Many insurance companies are now offering these programs, which reward good driving behavior with discounted insurance rates.
Raise Your Deductible
One of the most dramatic ways to lower your car insurance payments is to raise your deductible. Keep in mind that if you or your teenager gets into an accident, your out-of-pocket expenses will be higher with a raised deductible. To be on the safe side, always keep the amount of the deductible set aside as emergency savings.
Get a Safer Car
When shopping for a car for your teen, opt for a car with a good safety rating and additional safety features, like anti-lock brakes and dual airbags. The safer your teen's car, the lower their insurance will be. Plus, you will rest easy knowing your teenager is safer while behind the wheel.
By following these steps, you can help reduce your insurance rates even with the addition of a teen driver.
For auto insurance, contact a company such as Edwards Insurance Agency.Share