Having a teenage driver in the house can raise a lot of concerns as well as your insurance costs. A teenage driver can often double insurance premiums, due to the fact that car crash statistics show that teenagers are more likely to get into an accident. There are things you and/or the teenage driver can do to lower rates. Below are a few tips to help keep your insurance costs in line.
Defensive Driving Course – Enrolling in and completing a defensive driving course can result in a 5-10% reduction in the teenage drivers rate. These courses are relatively inexpensive and can be taken in a day, and in some states they are offered online. Requirements for these course often vary by state so check with your insurance agent for details.
Good Student Discount – Most major insurers offer a good student discount for teenage drivers that maintain a certain grade point average. The required grade point average will vary by insurer, but most require at least a B average. The majority of insurers will offer a 5%-20% discount for maintaining the required grade point average.
Older Vehicle – Insurance on an older vehicle will be cheaper no matter who is driving so having a teenager in an older vehicle will lead to lower premiums. If you have an older car and you are thinking of replacing it, would often be a good opportunity to give the old car to a teenage driver.
Higher Deductible – If your teenager primarily drives a certain vehicle raising the deductible on that vehicle will result in lower premiums. Increasing your deductible from $500 to $1000 will help bring down your premium.
Clean Driving Record – If you are a parent, and both you and your teenager keep your driving records clean, it will result in savings. A speeding ticket, especially one by your teenage driver will result in a dramatic increase in your premiums. It goes without saying that if the teenage driver is involved in an accident, premiums could skyrocket.
Safe Vehicles – A brand new car loaded with safety features will often provide a number of discounts which leads to lower premiums for not only your teen driver but everyone else who drives the vehicle.
Shop Around – It is a good idea to shop around when looking for car insurance. Get quotes from all the major insurers and ask for all available discounts when talking to your agents or requesting a quote online. Comparing insurance rates once a year is a good habit to get into and can lead to significant savings.
A teenage driver can raise insurance rates dramatically but if you are a parent, and your teenager work together, you can significantly lower your premiums. Following these simple tips, driving safe and maintaining a high grade point average can result in big savings.