Insuring Your Teen Driver without Breaking the Bank

Statistically speaking, teenage drivers are involved in nearly three times the amount of accidents compared to drivers just in their early twenties. Because of this, adding just one teenager to your car insurance policy can cause your 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 teenage can cost an astronomical amount of money. Statistically drivers younger than 25 years old – especially teens- are some of the  highest-rated drivers on the road.  Instead, consider adding your teen 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 payments, paperless billing, accident forgiveness, loss free discounts, and other perks.

 

Increase your deductible
If you can afford to pay a higher deductible in the event of an accident, increasing it is a way to save on your premium. This can help you save money even if you don’t have a teen driver.

 

Good student and driver training discounts
Some carriers offer discounts of up to 10% (or even more!) for student drivers who maintain a B average or better. Additionally, if your teen attends a driver safety course or works with a driving instructor, this can bring an additional savings up to 10%.

 

Safety first
If your teen driver will be driving 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 on 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 there’s an accident.

 

Track your teen’s driving habits
Some insurance carriers offer discounts based on the specific habits of a driver. By temporarily installing a special gadget in the vehicle, insurers can view how many miles are driven, when the teen is driving, how fast they are driving and braking, all things that can factor into a premium rate.

 

Tell your agent where your teen goes to college
Depending on where your teen goes to school and if they are taking their vehicle, you may be eligible for a reduction in your premium when school is in session. For instance, if your teen goes to school 100 miles away and doesn’t take their vehicle, you may temporarily see a reduction in your surcharge. Another example is if you currently live in a big city but your teen is going to school in a rural area. It’s worth speaking to your agent to see if your insurance carrier offers discounts for these types of scenarios.

 

Have an agent shop options for you
Often we are told to get two, three or more options or opinions before we make a decision. Shopping insurance is a good idea, but it can be time consuming and frustrating to gather quotes on your own. Working with an insurance agent like the ones here at McConkey relieves the burden of having to shop for the best quotes by doing the work for you. Reach out to us today so we can help you find the policy that best fits your situation.

Jody Czap, CISR

Author Jody Czap, CISR

Personal Lines Supervisor
jczap@ekmcconkey.com
717-505-3133

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