Teen drivers scare most insurance companies. In fact, as you may know already, your rates will probably double just by adding a young driver to your insurance policy.
If you shop around you’ll be able to save some money because each company rates young drivers differently. And, while you’re shopping around, here are 4 tips to help you maximize your savings on your car insurance premium.
1. Good Grades
Insurance companies equate good grades with responsibility. The better the grades, the more responsible the driver. If your young driver has a “B” grade point average or better than he/she will receive a discount that will lower your rates.
2. Take Drivers Education
Not all insurance companies offer a discount for taking drivers education. However, kids that take driver education classes learn things that can make them better and safer drivers. Hopefully, these will ultimately lead to a safer and accident free driving experience which will help keep your rates down in the long run. And, for the insurance companies that offer the discount you get to receive the benefits.
3. Raise Your Deductibles
Raising your deductible to $500 or $1000 will make a significant difference in your insurance cost. If you think about it too, why would you pay more significantly more money every month if you’re hoping to not have an accident anyhow. When you do the math, when you increase your deductible you’ll often save enough over 1 or 2 years to pay the difference if you actually have a claim.
I’ve known some parents that have raised the deductible and made their teen driver start saving money every month. This money is put aside in case they have an accident. If they go claim free by the time their 18 year old then they can keep the money. If not, they pay towards the accident deductible and have to replenish the account each accident.
4. How Are Drivers Assigned To Vehicles?
This can make a huge difference in your auto insurance premiums. Each company has their unique way to rate premiums and assign drivers to cars. If you have a young driver, which car does the insurance company show them as the primary driver? Some will rate the teenager on the most expensive vehicle. Other companies allow you to tell them which vehicle the young person is driving.
If you have a 20 year old pickup truck and a brand new sports car, which would be more expensive to have your young driver insured on? Ask if you can have them rated on the older, less expensive vehicles and tell the insurance company that’s the car your teen is driving.
Since you’ve read this far I’ll give you a bonus tip.
Bonus Tip 5:
Since each insurance company rates teens and young drivers differently, it’s best to shop around and compare rates and coverage options when you have a young driver. Many people get complacent and don’t want to shop rates. It’s sort of a devil you know is better than the devil you don’t know, right?
Well, it’s easy to shop rates and find companies that will help you best protect yourself while getting the best rates possible. Take a few minutes and fill out the online quote form and find out how much you could be saving. Once you’ve filled out the form you’re done. You just have to compare rates and find out how much you could be saving.
nice article. we see so many parents panicking when their child turns 16 yrs. old because the rates go up so much. These are some of the things we recommend too, among others.