Choosing an insurance policy for your teen may seem a little scary at first. Not only has your teen reached a huge milestone in his or her life by reaching the legal driving age, but you’re also faced with considerably high additional automobile insurance rates. Fortunately, both parents and teens can find ways to save on their increased premiums.
Parents
Some parents automatically assume taking out separate policies for car insurance for teens is the cheapest way to go. However, doing this can actually result in a higher insurance rate than adding them to their own policy. By creating two separate insurance policies instead of grouping them into one, both you and your teen will be paying for separate automobile insurance policies. Although your existing policy will likely face a considerable increase in cost, if you do the math, it will probably end up costing less than separate policies in the end. By adding your teen to your automobile insurance policy, you could be eligible for several other discounts, based on the provider. Here are some quick tips, tricks, and discounts to look out for to cut down on the cost of car insurance for teens on your policy:
- Some insurance companies offer discounts for insuring multiple vehicles with them. Be sure to ask about this option if your teen has his or her own vehicle.
- Purchase reliable, sensible vehicles with high safety ratings. They’re much less expensive to insure than flashy, high-risk and more expensive alternatives — especially when you’re insuring a high-risk (teen) driver.
- Discussing the option of increasing your deductible with your agent. This plan typically results in lower premiums if you can afford to pay the higher deductible in the case of an incident.
- Look at the model and value of your vehicle or vehicles and determine whether collision or comprehensive coverage is worth it. Even though teen drivers are considered more likely to get into collisions, these optional coverages may not be sensible on certain vehicles.
Teens
- Many car insurance providers offer “good student” discounts to teens with GPA’s around 3.0 or higher. Ask your agent about this discount and specifications.
- Completing a driver’s education course, especially in a state where it isn’t required, is often rewarded with a discount. If it is required by the state, find out if there’s a discount for additional training or classes.
Once insured, the most important factor in making car insurance for teens as affordable as possible is by keeping a clean driving record. Every traffic violation or accident will increase the cost of your coverage. By following these tips, as well as looking into any other discounts your teen may be eligible for, with good preparation and a focus on the importance of responsible driving, you can save some money on your teen’s insurance premium. If you are looking for affordable automobile insurance coverage for your teen, contact us. Our insurance agents in Dallas can help you explore your options and find the best policy for you.