It’s time for another installment of the Teen Driving Tips and Facts Series! This post covers a number of ways you can save some money when insuring your new teen drivers. There are a number of options that parents have when it comes to insuring their teens, so make sure you know what they are before you make a decision!
While teens are learning to drive, and only drive while under the supervision of a licensed driver, they do not need to be insured as drivers themselves. When teens get their full licenses, it’s then time to get an insurance policy too. More often than not, it’s cheaper for parents to add their teens to their existing policy, rather than take out a policy for the teen individually. Bear in mind, though, that when you add a teen to your policy it increases your rates much more than when you add another adult driver. There are many ways to save money on car insurance for teens; here are some of them!
- Encourage your teen drivers to hit the books! Most insurance companies offer huge discounts to teen drivers who are also good students, usually anywhere from 15-35% for students with B averages or better! Not only is studying hard good for your kid academically, but it winds up being good for you financially too.
- Put your teen drivers in a safe car. Cars with higher safety ratings are often less expensive to insure than others. Any additional safety features that a car is equipped with may reduce the amount of money it costs to insure the car. Making sure your teen is driving a safe car will put your mind at ease, as well as lower your premium.
- Send your teen drivers away to school! Who doesn’t want their kids out of the house for 9 months of the year? Just kidding! But if your teen does go away to a school located 100 miles or more from your home, you can likely get a break on your insurance for the time that your teen is away. That way you’re not paying for the time that your teen’s car is sitting in the driveway collecting pollen, but when everybody’s home for the holidays your teen is fully covered.
- 4. Adjust or eliminate your comprehensive and collision coverage. If any of the cars on your policy are older, and are worth little more than their deductible, you might as well drop your comprehensive and collision coverage. If your car is older and not worth very much, you may actually be paying more in premiums than you would get back from your insurance provider if your car was totaled in an accident! Additionally, if you adjust your coverage to raise your deductible, you will lower your premium rates. If you take this approach, we recommend you add some money to your emergency fund so that if you or someone in your family does get into an accident, you’ll be prepared to pay the higher deductible.
- Teach your teen drivers to drive well! Many insurance companies offer additional discounts for good drivers, and for drivers who have taken safe driving classes or participated in similar programs. Ask your insurance provider about what good driver discounts they have available, and enroll your teen drivers in one today!
We hope these tips were helpful for anyone who’s looking to save some money as they approach adding new teen drivers to their insurance policy! As always, if you have an idea for something we missed, please let us know in the comments!