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Car insurance for young, inexperienced drivers isn’t cheap, and for good reason. Teenage drivers between the ages of 16 and 19 are more likely to be involved in accidents than any other age group, as stated by Webb Insurance. For parents with teens who are rapidly approaching the driving age, learning how to save on teenage car insurance is a necessity. Many parents benefit from the following ways to save on teenage car insurance:
- Driver training discounts.
- Ensuring their teen has good grades.
- Having a safe car for their teen.
- Installing telematics in the vehicle.
- Shopping around for policies.
- Teaching safe driving habits.
- Looking into student away discounts.
Driver Training Discounts
Because teenagers don’t have experience behind the wheel, many insurance companies provide discounts for teens who have completed a driver training program. Whether you enroll your new driver in a driver’s education program through their high school or one offered through your state, ensuring they know what to do when they get out on the road can help you save on car insurance.
A driver training program can also give you peace of mind when handing the keys to the car over to your teen. Talk to your insurance provider about which driver training programs they give discounts for, as it can vary from one company to another.
Maintaining Good Grades
While encouraging your teenager to get good grades can help them get into college and find employment as an adult, it can also help you get a lower rate from your car insurance company. Ramsey Solutions tells us that maintaining at least a B average can help lower the rate you’ll pay when you add a teenage driver to your insurance policy.
If your teenager makes the dean’s list or is on the honor roll, share that information with your insurance provider, as it might help with lower rates too. Until your teen reaches age 25, getting good grades could result in a discount that ranges anywhere from 5 to 15 percent, depending on the provider.
Driving a Safe Car
The vehicle you choose for your teen can affect your insurance premium. Certain vehicles, such as sports cars, already pose a higher risk for insurance companies. So, putting a teenager behind the wheel of a vehicle the company considers high-risk is going to increase the amount you pay each month for insurance. Many insurance providers consider these vehicles to be the safest options for teens:
- Honda CR-V
- Volkswagen Jetta
- Toyota Camry
- Ford Taurus
- Subaru Forester
While it’s not mandatory that your teenager drive one of the vehicles on this list, a four-door sedan will help you save the most money on teenage car insurance.
Installing telematics in the car your teen drives can help lower your monthly insurance payment. According to Money Talks News, insurance providers can use telematics devices to track your driving habits. Talk to your insurance company to find out if they have a device they can install in your vehicle that tracks things like your braking habits, driving speed, the distance you travel on average, and how often you drive.
If you allow the company to track this data, you could save money, as they’ll see how safe you are when you get behind the wheel. Of course, they will collect this data your teen, as well.
Even if you have a great insurance provider, before you add your teen to your policy, you might want to shop around. Every insurance company offers different rates and discounts, so get quotes from other car insurance providers to see how they compare. Thanks to the internet, this can be a quick and easy process. Plus, getting quotes doesn’t mean you have to make a commitment to any of the providers you inquire with.
Most insurance companies have discounts you can take advantage of, which is important when you’re adding a teenager to your policy. Bankrate shares that these companies typically have better rates for parents with teens who need to be added to an insurance policy:
- State Farm
These companies might help you save money when it comes time to add your teenager to your policy.
Teaching Good Driving Habits
Just like you teach your child to look both ways before crossing the street, you have to teach your teen to be a good driver. While this might seem easy, you’ll have to examine your own driving habits first. Before you can teach someone else to be a good driver, you must set an example by being one yourself. When driving, make sure you stay within the speed limit, use your turn signal, and come to a complete stop at stop signs.
When you demonstrate these good driving habits, you’ll find that your teen driver is more likely to do them, too. Having a clean driving record without accidents or moving violations is one of the best ways to get a low rate on your car insurance. If your teenager can drive without having accidents or other violations on their driving record, they’ll end up with a much lower rate while they’re on your policy.
Looking at Student Away Discounts
When your young driver heads off to college, you can get a discount — called a student away discount — if they don’t bring a car. On the same note, if your teen goes on a trip or isn’t driving for a certain period, let your insurance company know, as they might give you a discount. It’s also important to note that if your teen drives an insured vehicle for less than 25 percent of the time the vehicle is on the road, you can receive a cheaper rate.
Having car insurance for your teenage driver is important. Teens are more likely to be involved in accidents and have proven to be higher risks for insurance companies. Look at how to save on teenage car insurance before they take this big step toward their independence.
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