If you have a teenager who has recently obtained their license or is about to, then you know to expect higher insurance rates. After all, a younger driver is by nature a more inexperienced driver, and insurance companies know better than to take chances in that regard. In 2013, over 2,000 teen drivers were killed in auto accidents and nearly a quarter of a million were injured. Many of these deaths and accidents can be attributed to negligence on the driver’s part, such as being distracted by other stimuli or driving over the speed limit.
However, having a teen driver on your insurance doesn’t mean you can’t save money. By following these methods, you’ll be able to have a teenager on your insurance without breaking the bank.
Have Them Take Driver’s Education
Some states have school curriculums which require completion of driver’s education programs. Even if yours doesn’t, it is still highly advised that you enroll your teen in such a program. Certain insurance companies will offer lower insurance rates for teens who successfully complete such programs. You should also encourage your teen to do well in school, as some insurance companies offer lower rates based on good grades, for both high school and college teens.
Look at Different Insurance Companies and Plans
If the rates offered by your current auto insurance provider are too high, look at websites and do comparative shopping for quotes for lower insurance plans. You can also help costs by looking into combining plans and benefit from multi-policy discounts.
You may also want to get in touch with a trusted collision repair center in your area. Tell them about having a teen on your insurance plan and ask them about how they work with insurance providers. Finding a good repair business is as easy as searching “auto body shop summit county” or “collision repair orange county.” Call a few different centers to help you determine which one you would go to in case of an accident. Another option is seeing if your insurance company has partnerships with any shops in your area.
Teach Your Teen to Drive As Well As Possible
Insurance companies don’t have higher rates for teen drivers because they think teen drivers might get involved in more accidents. They have higher rates for teen drivers because they know teen drivers get involved in more accidents. Their inexperience and larger tendency of bad driving habits mean teen drivers are a much greater liability on the road.
Though there’s no way to completely ensure your teen is not involved in an accident, you can greatly reduce the odds of it occurring by teaching them safe driving habits and holding them accountable for every decision they make when you are driving with them. You should down with them when they get their license and remind them that having a license is a privilege and the amount of how much responsibility it requires of them.
Reduce Coverage Costs
If your teen is driving an older vehicle, then you can potentially get rid of get rid of collision and comprehensive coverage. As these types of coverage are only based on the car at its current value, they are much less necessary for older vehicles. Check with different insurance providers about how old a vehicle needs to be to remove collision and comprehensive coverage without worry.
Having a teen driver on your insurance plan can be a potentially nerve-wracking thought. However, if you plan for it accordingly (you should have had at least 16 years of preparation), research plans and companies that help you save money and advise your teen on the importance of driving safety, then you have much less to worry about.