From the moment your teenager has their learner’s permit and sits behind the wheel of your car (or their car if they are very lucky) they will need insurance. The easiest and cheapest way to arrange auto insurance is to add them to your insurance policy, but even then the cost involved can be extremely high.
How can I reduce the cost?
There are several ways to reduce the cost for a teenager - some will only be applicable once they have their full license, but it’s good to know ahead of time what steps you can take to reduce your expenses. Here are our top 5 tips.
If you have a teen with a B average (or better) grade point average let your insurer know. This often qualifies them for a discount.
Consider enrolling them in a safe driver training program. Insurers rate these programs since they raise awareness of the hazards of high speeds, texting while driving, drunk driving and general road safety.
Check out in advance what insurers consider being safe vehicles. High-performance cars and sports models will attract high premiums, whilst family cars with best in class government safety ratings will attract discounts. Your teen may have to wait a little longer for their first Ford Mustang!
Finally, consider a Pay-As-You-Go auto insurance policy. Designed to reward safe drivers, these policies take advantage of OnStar type telematic devices to monitor how you and your family drive your vehicle and adjust your premium accordingly.
If your car does not have a device inbuilt like OnStar you can install one yourself. You may even find that you personally qualify for a discount. The insurers look at your average speed, braking habits, mileage information and the which hours of the day you are driving. You can use the same technology to keep an eye on your teen from your home computer.
Keep these tips in mind as you get your teen set up for safe driving and you should find the best auto insurance deal for your family. It is never cheap to insure a teen but there are definitely ways to save money.