It’s usually a financial hit for a family to provide auto insurance for teens, so try these 9 tips to get cheap rates to keep that hit to a minimum.
The average family has to cough up 80 percent more to get a teen safely behind the wheel and fully insured. While rates vary from state to state, some states saw astronomical rate hikes for teen drivers two years ago. Exhibit “A” is New Hampshire, where the Granite State saw a 115 percent boost in teen auto insurance.
Rate increases of more than 100 percent also hit families in the pocketbook in Maine, Rhode Island, Wyoming, Oregon, Connecticut and Illinois.
CHECK OUT: Costs to Insure Teen Drivers Drop Slightly
Teenage males are more costly to insure, with a 92 percent rate hike, compared to 67 percent for teen females.
Regardless if you are insuring a son or daugther, you can expect auto insurance for teens to drive up the cost of your family's insurance premiums.
How to save when buying auto insurance for teens
All these increases leave many U.S. families trying to figure out how to reduce those teen insurance costs and figure out strategies to cut the best and most affordable deal.
So, insuranceQuotes took to the road to find the best tips on getting the best deals when searching for auto insurance for teens. Here’s what we found:
1. Driver training discounts – Parents can steer their teenagers toward driver training programs, which are available in many states. Discounts will vary, so it's important to do some comparison shopping.
2. Smart student discounts – If your teen is getting solid grades at school, use that to your advantage. Full-time students with a B average or on a dean's list or with similar honors could qualify for as much as a 15 percent discount. Traffic offenses, however, will nullify a student discount so driving safely is essential.
3. “Student-away” discounts - Teens (think college students) who live far from their homes and the family vehicles may qualify for this discount, which can slash coverage premiums by more than 35 percent. These discounts are available because the insured will drive less, and thus, is less likely to cause an accident.
4. Shop around – Parents should search high and low when choosing auto insurance for teens. Shopping around can cut those costs significantly. Sticking by your current insurance provider may not help, either. Insurance carriers can raise the rate on people who aren’t comparison shoppers through a practice called price optimization.
5. Bypass the “flashy” car – Parents may want to steer clear or price, high-risk vehicles for their teens. Look for a vehicle with good crash protection, and stress the importance of safe driving. A more moderate, measured approach can slash some of those high teen insurance costs.
6. Take a driver’s education class – Many insurance companies will offer a “safe driver” discount if your teen takes a drivers education class. Take one even if a class isn’t required in your state because it may qualify you for a discount. Ask your insurer about these discounts when looking for auto insurance for teens.
7. Check your vehicle – If your child will have a car of his or her own, the Insurance Institute for Highway Safety lists insurance losses by make and model. Those vehicles with lower auto insurance losses will typically have lower auto insurance rates, while providing more protection if your teen is in a crash.
8. Choose automatic withdrawal – and save – For parents now insuring an additional driver in the house, you are most likely looking for ways to save money. One way to do this may be to elect to have payments automatically withdrawn from your bank account each month.
9. Bundle up – Bundling home and auto policies also is a great way to save money, so check with your carrier or agent about these options.