How To Find Affordable Car Insurance For Teen Drivers
Teen drivers can come at a high cost for parents. According to one study, car insurance premiums can cost 82% more. Teen accident rates are four times more than those of 20-year-old drivers, reports the Insurance Institute for Highway Safety (IIHS). Here are some tips on how to find affordable insurance for teen drivers.
Pick The Right Car
Choosing a sensible, safe car could save you on your insurance premiums. Picking sports cars could encourage drivers to speed, plus these cars are expensive to insure.
The IIHS suggests selecting a midsize or large car as they typically manage well in accidents and keep passengers safer. You can check an annual list published by the IIHS of the best-used cars for teen drivers.
Use An Existing Insurance Policy
It is typically most affordable to add a teen driver to an insurance policy that already exists as opposed to purchasing a separate one. Insurance companies give bigger discounts on multi-vehicle plans.
However, many companies often rate teen drivers on all the cars in the policy, even if they don’t drive them. So if there are pricey cars in the policy, this could up the premium. In this case, it might be most cost-effective if teen drivers had a separate plan with a sensible, cheaper car.
Make Comparisons & Ask For Quotes
Start shopping early. Researching different companies could help you find the best rates as some companies offer special discounts for teen drivers.
Also, check with your current insurance company. They are often more flexible when it comes to minor accidents if you’ve been with the company for a long time and could offer multi-vehicle discounts.
Don’t just provide the year, make, and model of the car you wish to insure. A VIN, or vehicle identification number, gives a more accurate insurance quote.
To avoid ballpark numbers, be upfront about any tickets, accidents, or other issues worth reporting. Make sure you get a firm quote before you cancel any policies or pay for new premiums.
Special Discounts & Programs
Some insurance companies offer discounts if your teenager makes good grades. Allstate’s Smart Student discount offers up to 35% off premiums. Other companies offer discounts upon completion of certain driver’s education programs.
If your teen attends college 100 miles away or more and leaves their car at home, they might be eligible for other discounts.
Graduated Driver’s License programs are offered in all 50 states and the District of Columbia. These programs have varying requirements depending on the state.
The general idea is to offer teen drivers more experience and the opportunity to build a trusting relationship between teens and parents. They are to follow certain rules in order to earn more privileges. This slow pace program allows safer entry into the world of driving and keeps insurance rates down due to the program’s effectiveness in reducing accidents.
Modify Your Policy & Drive Safely
You might want to consider removing the comprehensive and collision coverage from your insurance if your teen drives an older car. This way you’re not paying massive amounts of money on premiums for a car that doesn’t have much value if it were totaled or stolen.
Encourage your teen to drive safely. 31% of teen accident fatalities are due to speeding. The NHTSA reports that 1 in 3 teens admit to texting while driving. 15% of accidents that cause injury involve distracted driving, such as applying makeup and eating.
Delay The License
It might not be easy, but asking young drivers to wait until age 20 to get a license can save money. In 1983, almost half of 16-year-olds were licensed. Today, that trend is decreasing, with more teens walking, taking the bus, and biking. Reasons varied, but many expressed that driving was a hassle and expensive and preferred public transportation.
Your teen could see this as a trendy opportunity so it doesn’t hurt to ask.
A new teen on the road could stress any parent. Finding cheap insurance for them could stress parents even more. Luckily, being well-prepared and doing research early could prevent such a hassle. It’s worth talking with your teen about expectations and safe driving, and requesting quotes and discount offers from different companies. Affordable insurance and safe driving go hand in hand. Knowing your insurance costs are low and your teen is safe on the road can bring you much-needed peace of mind.