Saving Money on Car Insurance for Your Teen Drivers
Getting a driver’s license is a huge milestone for teens and parents alike.
For teens, it means more freedom, more independence and the open roads. For parents, it means a lot of nervousness and increased insurance costs.
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The increased premiums that come with adding teen drivers to your plan can’t be avoided. However, there are some ways that you can still save on insurance for your teen. Talk to your child about the following factors as the time for them to learn how to drive approaches:
- Good grades. Many auto insurance providers have good student discounts for students who average at least a B (3.0) or better. Just another reason to encourage your children to do their homework and study hard.
- Driver’s education. Not all states require driver’s education, but there are many insurance providers that do provide discounts if your teen successfully passes a driver’s education course. Therefore, even if your child isn’t required to go through the course, it’s still a good idea to sign them up as it could mean savings on insurance.
- Additional driver courses. Additional driver training courses beyond just standard driver’s education classes could also help you to save money on car insurance premiums. These courses could revolve around safety, behind the wheel courses and more.
- Have them drive modest cars. Brand new, flashy rides are expensive to insure for anyone, but especially for young, inexperienced drivers. Instead, opt for an older, modest, sensible vehicle for your teen that you know is safe and runs well. The insurance prices (and cost of the vehicle) aren’t worth paying for what will be your child’s first car.
- Pay high deductibles. If you raise the deductible of your plan, it will help you save money on the premiums you will have once your child joins your plan. However, it is important to note that you should only raise your deductible to levels that you are able to afford in an emergency situation.
You don’t have to break the bank just because you will be adding a new teen driver to your plan. Consider these tips and determine whether any of them make financial sense for you, and feel free to contact us if you have any further questions. We are happy to help you.