Saving on Car Insurance for Your Teen Driver

Young drivers anticipate enjoying their freedom behind the wheel because of the apparent ease with which adults handle a vehicle. Parents cringe because they know how much responsibility accompanies the privilege of driving a car. Unfortunately, statistics reveal that teen drivers increase the probability of claims against an auto insurance policy significantly in the first two years after getting a license. There are ways to reduce the cost of adding teen drivers to the family auto insurance coverage. Does your teenage driver raise car insurance premiums? Follow these steps to avoid it as much as possible.

Coverage Adjustments

Insurance is designed to cover significant losses that can occur to the automobile and the property belonging to other people. All changes in coverage that are intended to lower the premium must be made without causing significant financial hardship if a loss occurs. Experienced insurance agents know the best ways to reduce the cost without compromising coverage.

Raise deductibles

Comprehensive and collision deductibles can be raised to $1000, which reduces the cost of the policy. This action must be followed by contributing more to the household emergency fund to offset the costs of small repairs that might arise.

Older cars

The value of each vehicle should be reviewed to determine if older cars can be covered with liability-only insurance. A car that is not worth more than the deductible on the policy should not have replacement and repair insurance.

College student

Adjustments to the car insurance rates can be made if the student is away at college further than 100 miles from home without a vehicle. Notifying the agent that the student is gone most of the year can be noted on the policy, which lowers the rates while providing coverage when the student is at home.

Comparison shopping

Insurance companies price every aspect of car insurance coverage differently. Some insurers offer better rates when teen drivers are added to the policy. All quotes must be compared to ensure that the coverage amounts are identical. Very low quotes should be eliminated from consideration.

Significant Discounts

Insurance companies offer significant auto insurance discounts to encourage all drivers to practice safe-driving habits. Teen drivers can contribute to the discounts offered on the family auto insurance policy. Questions must be asked to the insurance company to determine which discounts are offered when a teen driver is on the policy.

Safe vehicle

Low repair costs and safety features earn discounts from insurers because of the reduced cost of claims. Every car model is evaluated for the actual costs of claims from each model year. Teen drivers should drive the safest car that the family owns. Some families do not allow a teen to drive the most expensive vehicles to avoid expensive claims.

Good student

High school students with at least a “B” average are offered substantial discounts on auto insurance coverage. Just as a good credit score is rewarded for adults, good grades are a sign of responsible behavior that will translate to good driving habits.

Training courses

Defensive driving courses and training for inclement weather have been proven to reduce the risk of accidents. Teen drivers who have completed these courses are rewarded with deep discounts on car insurance. Adult drivers have embraced additional training to lower their own rates as well.

Multi-policy

Insurance companies appreciate loyal customers and offer 15 to 20 percent discounts when home, life and auto insurance policies are underwritten by the same insurer.

Final Word

Reductions in the liability coverage on the auto insurance policy should be avoided. Increased risks associated with teen drivers can require increased liability coverage that can be purchased through an umbrella liability policy. More insurers are offering umbrella liability policies at excellent annual premium rates. Millions of dollars of liability coverage can be affordable through the umbrella policy.

Teen drivers might introduce more risk, but most will learn from the good driving habits exhibited by their parents. Driving skills are invaluable for the independent young person who wishes to include driving in their future occupation. Practice is the best way to teach each teen driver how to handle various situations. Every effort can be applied to teaching the risks of distracted driving, but the most important action for all experienced drivers is to encourage their efforts to learn how to handle a vehicle in a responsible manner.