It’s no secret that as your teenager’s sixteenth birthday approaches, his or her desire for a driver’s license and access to a car increases. Unfortunately, once you have a licensed teen driver, your insurance premiums will also increase. This is because insurance companies correctly perceive young drivers as being reckless and inexperienced.
The good news is that there are ways in which you can reduce your financial burden when it comes to insuring your teen driver. Here are some of them:
- A Clean Driving Record: It’s never too early to emphasize the need to obey traffic rules and keep your driving record clean. For teens, this means paying close attention to the speedometer, to make sure they are within the speed limit. Of course accidents will still happen, but driving with caution will help reduce the likelihood.
- Increase Your Deductible: Whether you’re insuring a teen or yourself, increasing your deductible – the amount you pay out of pocket when you file a claim – will help reduce your premium.
- Safety Features Count: The more safety features your teen’s car has, the less the insurance will cost, but be sure to avoid vehicles that fall under the higher hazard ranking class.
- Follow Licensing Restrictions: Most states impose restrictions on teen drivers, limiting their driving to daylight hours, or to and from school, at first, and not granting full privileges until they’ve reached the age of eighteen. It is to your teenager’s advantage (and yours) to follow the guidelines for your state.
- Make Them Pay: If your teen driver has a part time job, it’s wise to require them to contribute to their insurance payments. Studies have shown that teenagers who help pay for their insurance are more likely to drive responsibly.
- Get a Stand-Alone Policy: While adding your teenager to your policy is usually the cheapest option, in some cases, a stand-alone policy may be a better choice. This is often the case if your teenager is entering college, and will not be living at home.
- Grades Matter: Most insurers still give credits or discounts for good grades, so be sure to encourage your teenager to stay in school, and maintain a B-average or better. The good grade discount counts for college students as well.
There is no question that insuring a teenage driver is expensive, but selecting the right car and choosing an insurer that will give you discounts will help reduce the cost to more manageable levels.