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Car Insurance Savings for Teenagers

Every teenager in America looks forward to the day when they can go and get their license at the department of motor vehicles. The idea of controlling a vehicle and having total freedom to go anywhere you want is intoxicating to almost all teenagers. 

Teenage drivers tend to have higher premiums than adults, who often have much more driving experience. A driver’s license means more freedom to go further away from home, but many teens don’t digest the cost of driving and, in particular, the soaring costs of automobile insurance. The good news is there are ways to lower auto insurance costs if you do a little research and apply some proven tips.  

Shop Online and Compare Multiple Quotes

The best method of obtaining the lowest rates is to shop around. Most often, that means going online and comparing quotes from regional and national insurers. You want to compare ten or more quotes before deciding on one particular insurer. Popular auto insurance comparison sites will give you multiple quotes, all in about five minutes. You just need to provide some basic information about yourself and the vehicle being insured. 

Once you have received several online quotes, you might want to call a local agency or broker to see their rates. They often will not have the best rates, but you can check. Tell them what rate you received when you call and ask them if they can beat it. You’d be surprised how many times they will come back with a lower auto insurance rate using this method. 

Shopping around is really important when it comes to teen auto insurance because rates are so high. Today’s teens are getting in more accidents than ever, largely due to distracted driving and using devices behind the wheel. 

Teenagers Pay the Highest Premiums 

For teens, who often don’t make much money, it can feel like they are being discriminated against when it comes to auto insurance premiums. Many young motorists under twenty years of age can expect to pay over $250 per month for collision coverage, and often more. After all, teenagers pay more than double the rates of drivers over 40. 

Stats point out that teens take more chances behind the wheel, like speeding and driving recklessly. This leads to more accidents, and insurance companies are in the business of making a profit. To stay in business, they simply charge teens more. 

Teens Should Stay on Their Parents Policy

One proven method teens can use to save more on car insurance is to have their parents add them onto their policy as secondary drivers. Doing so can often result in savings of over $1,000 per year. 

This can lead to a family conflict if the teen is required to pay the premium each month but fails to pay it. Adding a teenager onto a policy can be an excellent way to teach them good financial discipline and responsibility.  

Be a Good Student and Save 

Insurers offer all sorts of discounts. One discount teens can use the good student discount. Young drivers in school can save 10% and often more by maintaining a grade point average of 3.5 or higher. Being smart and working hard can pay off in many ways, even getting cheaper insurance. 

Call your insurer or agent and ask them about the good student discount and how much they can save. It also applies to college students. 

Raise the Deductible

Another smart way to lower teenager auto insurance is to raise the deductible to $1,000 or higher if it is offered. The deductible is simply the amount of money the driver pays before the insurance kicks in. 

Having a high deductible can lower the cost of covering a teen’s vehicle by 10% and more. If you choose a higher deductible, make sure you set aside the amount in case of an accident, and a claim needs to be filed.  

Take a Certified Defensive Driving Class

One of the best things a young and inexperienced driver can do is take a defensive driver class. These classes are taught by driving experts who give valuable insights into staying accident-free. Not only can this valuable advice save a teen’s life, but it can also lower auto insurance premiums quite a bit. 

Once you have completed the course, contact your insurer and tell them you want this discount applied to the policy. If they don’t offer it, consider switching to a carrier that does. On a policy that costs $2,500 a year, this discount alone can save someone $250 each year. Teenagers may also benefit from joining their parents’ policy. Youi, an Australian insurer, assesses your situation and provides a more suitable quoting experience.

Conclusion

As mentioned in this article, teen auto insurance rates are skyrocketing. It’s important to find proven savings methods. Applying these common-sense tactics can lower teen auto insurance rates under $200 a month and even under $150 a month. Compare teen rates now and see how much you can save.