It’s what every parent dreads. Your teenager gets a learner’s permit and you have to teach them to drive. After that, you have to let them try their wings on their own as a full-fledged driver. Beyond the nail-biting fear for their safety, there’s the whole matter of getting auto insurance for your child.
Since teens are considered high risk drivers, their insurance coverage is higher. But there are ways to minimize the trauma to your wallet.
Explore Your Discount Options
Let’s look at some of the discounts that might be available when insuring a teenager.
- Add your teen to the family policy.
Adding a teen to your insurance policy will increase your monthly premiums, but its usually the least expensive way to go. An exception would be if someone on the family policy has a recent DUI, in which case a separate teen policy might cost less.
- Take advantage of discounts for teen drivers.
Most providers offer discounts for teens who have completed a driver safety education course, has at least a B average in school, and won’t be driving a lot. Once he or she has been driving awhile, a safe driver discount could be another discount to ask about.
- Give your teen a safer, less expensive car to drive.
Don’t rush out and buy your teenager a fire-red sports car. Instead, a safe and older model will help make your policy rate more affordable.
- Look for other kinds of policy discounts.
You may not be utilizing all of the discounts that might be available on your family policy. Possibilities include bundling your home owner’s and car insurance policies; driving a safe car; insuring multiple cars on the same policy; taking a driver safety class (they’re not just for teens); and having a good driving record.
- 5. Adjust your coverage with higher deductibles.
This approach will bring your monthly premiums down, but should your teen get into an accident you could regret increasing deductibles to lower your monthly costs. If the car your teen drives is older, you might qualify for a policy that doesn’t include comprehensive (non-accident events) or collision (car damage due to an accident).
Teenaged drivers are more expensive to insure because they’re a higher risk for insurance providers. Look for discounts with your current provider and get quotes from others. Do an online car insurance rate comparison of at least three providers and select the provider and policy that fits your situation best.