Auto insurance for teens
As many parents can attest, adding a teen driver to your car insurance policy can be painfully expensive. While amounts vary from state to state, increases of 60-80% are considered quite normal.
In some cases, it may be better to take out a separate insurance policy altogether for a teen and there are some situations where it might be best not to insure them at all.
However, most often, you will want to include your teen on your own existing policy and when you do, there are a few tricks that can help you reduce the cost.
Good students pay less
Although the link between school performance – including attendance and good grades – and driving ability is not necessarily clear, some insurers offer lower prices to demonstrably good students.
This means if your teen is attending school and regularly achieving grades of at least B, you may be able to reduce the amount you need to pay to insure them.
Attend extra driving classes
Some insurance companies will lower insurance premiums for teens who have attended driving education courses or courses bout safe driving after obtaining their licence.
Remember, just because a person has passed their driving test, it doesn’t instantly make them safe behind the wheel.
Driving skill increases with experience as well as with awareness, and attending these kinds of courses can be beneficial.
And of course, they can genuinely help your teen avoid car accidents during those first vital few years of driving – which, after all, is more important than the cost of the policy.
Choose a suitable car
The car that a teen is going to be driving has an effect on the cost of insuring them.
New, powerful, high-performance cars are most expensive since new drivers don’t have the experience to handle such vehicles.
On the other hand, clapped-out old bangers are not ideal either since they don’t have the safety features of modern cars.
The ideal choice for a teen is a “regular” car that is not considered high performance but that is new enough to include modern safety features such as power-assisted steering and anti-lock brakes.
If your car is a high-end, high-performance model, you might consider buying a car for your teen. If you do so, however, it should still be listed as a “family” car, which will also help lower the cost.
Get them through the first year
Car insurance premiums come down as drivers gain more experience and demonstrate that they can avoid accidents.
For sure, you will have to stump up the cash the first year, but if your teen gets through the first year and then the second year and then the third with no accidents, you will see the premium begin to fall.
This means that you should do everything you can to help your teen become a responsible and safe driver. Go for drives with them, educate them on safe driving techniques and make sure they understand the importance of careful driving.
Once they get through the first year with no problems, you will begin to reap the rewards.
The best deal is not always with your usual family insurer.
Different companies take different factors into consideration when working out how much a policy costs, and by checking out as many as possible, you will be able to find one that best suits your situation.
Prices can vary wildly from insurer to insurer and the only way to find the best deal is to check out as many as possible.
For example, as mentioned above, some insurers reduce the price for teens who are doing well in school. If your teen is in this category, it makes sense to look for a company that will reward this.
The same is true for other factors too. So cast your net wide and you are sure to find the best deal for your teen.
So in sum, there are many factors that determine the cost of adding a teen to your insurance and there are many things you can do to help lower that cost, including the five we’ve mentioned here.
If anything, number five is the most vital.
Loyalty to your usual insurer may end up costing you more money – so don’t be afraid to look elsewhere too.