Trying to find the cheapest auto insurance for teens is an exercise full of moving part. First, there is the task, for parents, mostly, of asking the right questions.
Secondly, parents need to know how to get discounts, thereby cutting the prohibitive costs of adding a teenager to a family auto insurance policy. That cost can be substantial. The average family has to pay 80 perecent more to insure teenage drivers.
Then there’s the all-important checklist of steps to take in the unfortunate situation of the teen actually getting into an auto accident.
Lost in the mix of the cheapest auto insurance for teens, however, is another simple, yet overlooked step − where can families find the best auto insurance policies that give mom and dad the safe and secure coverage they need, at a price they can afford, and offers great customer service and easy payment plans?
"Insurance for teen drivers presents a unique challenge,” states D.J. Noland, owner of McGhee Insurance Agency, Inc. , in North Little Rock, Arkansas. “As parents we want to know they are safe, but we also want keep the cost of doing this as low as possible, for their car and the car insurance that protects our assets.
Where to begin when trying to find the cheapest auto insurance for teens? In a word or so, know where to go, ask the right questions, and recognize the best deals. Here are a few tips on doing just that.
Shop early for the cheapest auto insurance for teens
For parents of teen drivers, it's best to start planning before they start driving, advises Noland.
“I recommend the planning start one or two years before they are ready to get their learner's permit,” he states. Noland says companies have reward programs that allow families to earn a “substantial” price break when adding a teenage driver.
“The only catch,” says Noland, “is that you have to have been with them for at least two years, but then receive up to a 30% reduction in premium for the teenage driver insurance.”
Get a good auto insurance agent
Jason Hoffman, founder of J. Hoffman Insurance, in Goshen, New York, says the best place for parents to start the search to find the cheapest auto insurance for teens is by leveraging a local independent insurance agent.
“An independent agent usually has access to dozens of reputable insurance carriers, and as a result, can shop around on your behalf to get the best coverage at the best possible rates for your young driver,” Hoffman says.
Find the best auto insurance deals
Lowering the cost to insure teenagers can be done, but that, too, takes some planning.
“For starters, your studious teen’s good grades may finally start to pay,” says Richard Lewis, digital marketing manager at Elephant Auto Insurance, in Richmond, Virginia. “Some insurers offer discounts for good grades, although you’ll have to ask about it and provide transcripts. Another suggestion is to opt for a safe, used-car, because insuring a less expensive automobile could/may yields lower rates.”
Get comprehensive auto insurance
Bryant Vernon, an analyst with global data sciences and services at Solera, an auto software company that processes seven claims every second, advises parents to ask their agent about comprehensive insurance. It's something he says shouldn't be overlooked when tyring to find the cheapest auto insurance for teens.
CHECK OUT: Costs to Insure Teen Drivers Drop
“That’s an optional coverage with a low or no deductible,” Vernon says. “It will not only cover weather related accidents (such as hail), but also covers your car in case you were hit by an animal. It also usually includes roadside assistance and free gas delivery if you run out, which is great for teens.”
Prioritize safety in teen auto insurance search
Have a long talk with your teen about driving safety − it’s a conversation that can really pay off with insurance discounts which is essential when you want to find the cheapest auto insurance for teens.
“For example, talk about moving violations, such as speeding, which can increase your rates. Stress the importance of slowing down to minimize the risk of a surcharge,” Vernon says.
Build a safety checklist for teen drivers
There are also some important investments savvy parents need to make for long-term savings, both in money and peace of mind, says Lewis.
“With an inexperienced teen behind the wheel, it may be time to add roadside assistance to your policy,” he says. “Also, parents should ask themselves if their liability coverage is ample with a teen driver behind the wheel. Without proper liability coverage, in the case of an accident turned lawsuit, even the most responsible drivers can be taken for a ride.”