Do You Have a Teen Driver? Keep Your Rates Down With These Tips | Insurance

By tdd1984
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Having a teenage driver in the house is nearly every parent’s nightmare. After all, you will probably stay awake at night worrying about your teen and watching your teen pull out of the driveway will probably make you cringe a little every time. In addition to your fears for your child’s safety, having a teenage driver is also scary because of the jump in your car insurance rates. With these tips, however, you can keep the rates more manageable and a little less frightening.

Put Your Teen on Your Policy

Although you may not like the idea, putting your teen on your policy will help to keep the costs low. If your teen has a separate policy, he or she will be listed as the primary insured and the rates will be determined by your teen’s record. Since your teen doesn’t have a record and is still a teenager, he or she will automatically be considered “high risk” and will be hit with a hire rate. To keep costs down for everyone, putting your teen on your policy is the better choice. If you want to make your teen responsible for paying his or her own insurance, you can simply look at the breakdown on your policy and have your teen pay for his or her expenses.

Check Into Multi-Car Discounts

One of the perks to adding your teenager to your policy is that it may help you qualify for a multi-car discount. Many insurance companies will give you a discount once you have two or three cars covered by the same policy.

Ask About Student Discounts

Some insurance companies will reduce the insurance rates for teenagers if they are getting good grades in school. To insurance companies, getting good grades shows responsibility and maturity. This makes them a little less of a risk to insure.

Sign Up for Driver’s Education

Your insurance company may charge you less if your teen completes driver’s education before getting his or her license. Before it comes time for your teen to get a license, contact your insurance company in order to find out if this is the case. Although driver’s education can be somewhat expensive, it will pay off in your reduced rates. In addition, it will give your teen more practice and experience, which means you can take comfort in knowing that your teen will be a better driver.

Restrict the Number of Miles Your Teen Drives

When you use a vehicle to drive a lower number of miles, you can receive a discount on your rates. If you restrict your teen’s driving to a low number of miles each week, you may be able to qualify for a better rate.

Purchase an Older Vehicle

Older vehicles get lower insurance rates than newer vehicles. So, look for an older car to be your teen’s starter car.

About the Author

Shannon Kietzman is a freelance writer and an authority on car insurance issues, including methods for auto insurance comparison. She helps others learn the basics of car insurance so they can make proper and informed decisions when choosing the coverage that is right for them.

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