Handing over your car keys to your teenager for the first time is a memorable moment and you won’t forget it. You will be reminded of it every time you open your auto insurance bill. As soon as you add a teen driver to your car insurance policy, your premium can spike anywhere from 50 percent to as much as 200 percent. Insuring someone without driving experience is risky business. Sixteen-year-old drivers are three times more likely to crash than 19-year-olds, according to statistics. And they are six times more likely to have an accident than drivers between the ages of 20 and 24.
How to lower auto insurance rates for teens
Before you apply for auto insurance quotes, follow these steps to lower your rates:
• Plan ahead. Before your teenager gets behind the wheel, research auto insurance policies for young drivers. Don’t wait until your teen has a learner’s permit and is driving your car, before you insure him. It’s easier and cheaper to get the best auto insurance policy for your family’s needs, if you do your homework.
• Talk to your insurer. Find out how your auto insurance company assigns drivers to cars on your policy. To cover the added risk of insuring younger drivers some insurers will assign the driver who's the most expensive to insure to the car that's the most expensive to insure. That means your teenager will be assigned to your family’s newest and most valuable vehicle
If this is the case with your insurer, it may be cheaper for you to buy your kid a “beater,” an old car with high mileage. If, however, your insurer gives you the option to assign drivers to your family’s cars, then designate your teen as the driver of your older vehicles. If your insurance company doesn’t give you this option, then you can switch to another one.
Experts recommend you keep your child on your policy, but you may want to check out how much it would cost to buy him his own policy in order to decide which would be the best approach. You can get auto insurance quotes for both policies at insuranceQuotes.com.
• Encourage high grades. Straight-A students are not necessarily safer drivers than C students, but they still benefit from lower rates. Insurance companies want straight-A students as future customers, because they are considered to be more responsible. So, many insurers will give a 10 percent to 25 percent discount to teenagers who maintain a B average or better.
• Enroll them in driver’s ed. You can cut your premium by another 5 percent to 15 percent by making sure your teen is enrolled in a driver’s ed class. Most high-school courses offer six to eight hours of instruction. While longer-term courses are more effective in reducing accidents, driver education classes are a good start – and they give you a break on your auto insurance rates.
Ask your insurer for instructional material. Most offer videos and booklets on driver's safety and many give policyholders an additional price break for using them.
• Increase your deductibles. Higher deductibles can reduce your premiums as much as 35 percent. Use your auto insurance policy to cover big expenses and pay out of pocket for the smaller ones. And consider not reporting every fender-bender. Every single accident, no matter how small, will increase your teen’s insurance rates. So, you will save money paying for smaller repairs.
Once you have done your research, you are ready to shop around for lower auto insurance rates. You can call agents in your local area, contact insurance companies directly or use insuranceQuotes.com to instantly get competitive auto insurance quotes from the nation’s leading insurance providers. Simply fill out a simple online form on insuranceQuotes.com to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.