Statistically speaking, teenage drivers are involved in nearly three times as many accidents compared to drivers in their early twenties. Because of this, adding just one teenager to an automobile policy can cause your insurance premium to spike by thousands of dollars. Some experts report parents’ auto policy rates can increase by more than 90 percent! Getting a driver’s license and driving a car is a coming-of-age milestone for most teenagers. And most parents don’t want to deprive them of that just because of how expensive auto insurance is… so how can you more affordably insure your teen driver?
Add your child to your policy
Purchasing an individual policy for a teenager can cost an astronomical amount of money. Young drivers under 25 years old – especially teens- are some of the highest-rated drivers on the road. Instead, consider adding your teenager to your existing auto policy as an additional driver. They will benefit from the discounts you already receive as a policyholder, such as multiple cars, automatic and pay in full billing plans, paperless billing, accident forgiveness, loss free discounts, and other perks.
Good student and driver training discounts
Some carriers offer discounts of up to 10% (or even more!) for youthful operators who are good students and maintain a 3.0 or B average or better. Another savings opportunity is the driver training discount. This involves completing a driving safety course through school or a private provider that includes both behind-the-wheel instruction and classroom education.
Increase your deductible
If you’re willing to take on more financial responsibility in the event of an accident, increasing your deductible is one way to lower your premium. This strategy can help you save money whether you have a teen driver or not. This can help you save money whether you have a teen driver or not.
Safety first
If your teen driver will drive their own vehicle, make sure it’s a safe one. A safe car is one that has a favorable crash-test rating, as well as airbags, anti-lock brakes, stability control and other safety features. It may also be wise to have them hold off purchasing any type of sports car that would make them less of a preferred risk. That being said, your best bet is to find a safe used car. Newer cars cost more to insure because their features are expensive to repair or replace if the event of an accident.
Track your teen’s driving habits
Some insurance carriers offer discounts based on good driving behavior or habits. This is typically time of day, speed, hard-braking, and use of hand-held devices. By temporarily installing a special gadget in the vehicle or downloading an app, insureds can monitor how many miles are driven, when the teen is driving, and how fast they are driving and braking. These are all things that can factor into a premium rate.
Inform agent where your teen goes to college
If your teen is heading off to college, they may be eligible for a reduction in premium while in school without a car. Some insurance companies offer a rating discount for a student away at school, greater than 100 miles from home and without a vehicle. Depending on where your teen goes to college, rates may vary and make a difference if you currently live in a big city and they attend a college in a rural area too. It’s worth speaking to your agent to explore the best options while your child attends college.
Our agents are ready to shop for you
Often we are told to get multiple options or opinions before we make a decision. Shopping insurance is a good idea, and we are here to do the work for you. As an independent agency, we have multiple companies that offer competitive rates. Our goal is to find gaps in coverage and look for the best protection for you. Reach out to us today and allow our personal insurance professionals here at McConkey to research and find the best option for you.
