Statistics for road traffic accidents unfortunately show that teenage drivers are too often involved in accidents. Because of this, their auto insurance quotes can be very high. Insurance companies are well aware that teenagers and cars are a high risk combination. If you teenager is driving, however, he is legally required to be covered by auto insurance. But look around, make a few changes to reduce the risks involved, and you can still find auto insurance savings for teenagers.
Auto insurance premiums are higher for drivers under 25, but many insurance companies do offer policies for teenagers. Your insurance agent can advise you on comparing the costs of insuring your teenager separately or adding them to your own policy. Meanwhile here are some other ways to save on your teenager’s auto insurance costs:
Shop around with local companies and agents. Compare rates and coverage, as detailed in the fine print.
With all the different options the insurance market has to offer, it can be a daunting task to find the policy you need at the lowest price you can. The internet can help with your search: try an online price comparison service to find the best rates, and visit the insurance companies’ websites to find all the information you need.
Don’t just go for the lowest rates without checking all the details to make sure everything you need is covered.
Shopping around for discounts aimed at teenagers may help your teenager realise the effect of different types of behavior on their auto insurance premiums. Insurance policies from some companies may include discounts for teenagers who attend defensive driver training, attend college away from home, get good grades in school, or live independently away from their parents.
Since the factors above are taken as indications of responsible behavior by insurance companies and used to reduce prices, you could try encouraging your teenager to get better grades in school and attend a defensive driving course. In some cases, insurance companies can offer or recommend a defensive driving course to you.
You might find it cheaper to add your teenager to your own policy, depending on your own auto insurance and claims history. If so, consider factors you can change to lower your risk, such as reducing your annual mileage.
Another way to reduce your teenager’s auto insurance costs depends on the type of car they are driving. A secondhand, sensible car with all the appropriate safety features will cost you much less in insurance than a flashy new car, a luxury car or an SUV.
One last thing to consider is to ask your teenager to pay the insurance premiums themselves, as this offers another incentive for them to drive carefully and safely.
So don’t give up on auto insurance for teenagers. Make some of the changes above, and compare at least five online quotes, and you are bound to find savings.