You Can Get Discounts on Teen Driver’s Insurance
It’s an all-too common occurrence – your teenager starts driving and your insurance rates go off the charts, and for good reason—according to the Insurance Institute of Highway Safety, when teen drivers get behind the wheel, they are 3 times more likely to be involved in a car crash than drivers over 20 years of age. In addition, motor vehicle accidents are the leading cause of death for drivers between 13 and 19.
In light of these sobering statistics, insurance companies view new teen drivers as increased liability risks—and you’ll pay for it with higher premiums. So what can you do to keep your rate increase down as much as possible? Thankfully, there are several actions you can take to get lower insurance rates for your teen driver:
- Take Driver’s Education – enroll your teen driver in a state-approved Driver’s Ed
- Most states require a driver’s education course to obtain a license.
- Many insurance companies recommend new drivers take an additional driving safety course – they often recognize the extra education efforts with lower insurance rates.
- Maintain good grades – good students are viewed as being more responsible drivers.
- Discounts on teenage policies can range up to 10 percent for students with a Grade Point Average (GPA) of 3.00 and above.
- Good Student Discounts are usually available for students between 16 and 24 years of age
- Students must be enrolled full-time in school or college and remain in good academic standing.
- Insurance companies generally accept a letter from a school official or school transcripts.
- Drive a safe car – cars with high safety ratings and other indicators can result in discounted rates compared to sports cars and SUVs
- Cars identified as a Top Safety Pick by the Insurance Institute for Highway Safety (includes features such as electronic stability control, collision avoidance and lane drift detection systems)
- Vehicles that deliver 20 miles per gallon or more
- Vehicles that score an average or better in annual visits to the repair shop.
- Include your teen on your own policy – Instead of having your teen on a separate insurance policy add them to your existing one.
- Ask for multi-car policy discounts
- If you own multiple vehicles, ask your insurance company if you can assign your teen to the safest and least expensive vehicle to insure.
- Your teen attends school that’s at least 100 miles away from where you live
- Teenagers in college tend to drive less often than students at home – your insurance carrier may offer a discount
- Such “away from home” discounts are available to students up to the age of 24
- Drop collision and comprehensive coverage
- If your teenager is driving an old car, you may not need this coverage
- Check a resource such as the Kelley Blue Book to see what your car’s worth and decide if keeping this coverage is necessary.
- Have your teen maintain a safe driving record
- Safe driving and a clean record weigh heavily in lowering insurance rates.
By understanding what you can do to keep your teen driver’s insurance rates as low as possible, not only will you save money, but you’ll ensure your teen is on the road to becoming a safe and responsible driver.
Do you have a teen driver in your family? Feel free to share your thoughts in the comments section below.