Top 5 Ways to Lower Car Insurance Rates for Teenagers

car insurance for teenagers

Parents of teens may have a lot of concerns and worries about impending drivers’ licenses. One nearly universal concern is the increased cost of auto insurance. Car insurance for teenagers are often increased dramatically upon a young driver being added to the policy.

Teen drivers are almost twice as likely to receive a traffic ticket as other drivers, and are nearly four times more likely than other drivers to get into an accident, according to the National Highway Transportation Safety Administration. Additionally, after a teen has had one accident, he or she is at a dramatically increased risk of having another accident. Affordable insurance rates for teenagers may still be available, however, if parents know where to look.

Every state has its own laws regarding car insurance for teenagers. Generally, once your teen receives his or her license, you must add him or her to the policy. Without accurate coverage for each licensed driver, you may be left without coverage when you need it most.

Making the high cost of insurance rates for teenagers more manageable is simple with the following tips:

#1. Choose Your Teen’s Vehicle Wisely

Small sports cars may be frequently targeted by thieves, and luxury cars can be expensive to repair or replace — which means they may also be more expensive to insure. A minivan or family sedan may not be the trendiest vehicle, but they may well be the most affordable options when it comes to obtaining car insurance for teenagers. Another option is to add your teen as a secondary driver to another family vehicle rather than purchasing a new or used vehicle for solely their use.

#2. Encourage Scholarship

Teens who work hard and are active in school often qualify for a discount based on their grades. Each insurer has its own rules regarding good grades, but most will offer significant discounts if teen drivers maintain an A or B average. You may also be able to receive discounts if your teen is enrolled in or has completed a safe driver program. When your teen heads off to college and does not have a car, you may also be able to receive a discount.

#3. Monitor Your Teen Driver

Even responsible teens can occasionally show poor judgment behind the wheel of the car. Talk to your teen about monitoring devices. Although these may not be able to reveal your teen’s driving habits in their entirety, they can notify you when your teen breaks the rules. Lack of seat belts, speeding and other common violations can be reported back to you. These devices can be expensive, and teens may resent the implications or intrusion; however, an auto insurance discount associated with monitoring devices can be significant. Talk to your teen about various options in order to determine the best solution for your family’s needs.

#4. Review Your Auto Insurance Policy

If you have all your insurance coverage through the same insurer, you may be eligible for multi-line discounts. You may also be eligible for discounts for safe driving, multi-auto discounts, discounts for your vehicles’ safety features and other unique-to-you mark-offs.

#5. Consider Altering Your Car Insurance Coverage

Although you may have been with your insurer for many years, you may not be getting the best deal on car insurance rates for teenagers. Compare other companies to ensure you are getting the best deal. However, before switching insurers, talk to yours to see if there are any other deals for which you qualify. Switching companies may result in your new insurer being less likely to retain you after an accident, so you will need to compare your options carefully.

You may also be able to adjust your policies to reduce their overall costs. Deductibles can be raised to lower monthly premiums, and comprehensive coverage can be dropped on older vehicles. When adjusting your coverage in this way, you will need to consider the extra costs that may be associated with any accidents your teen has. Additionally, you will need to maintain adequate liability coverage in order to reduce the expenses if your teen has an accident.

Insuring a newly minted teen driver can be expensive, but it does not have to break the bank. Asking your teen to pay for part or even all of the increased insurance costs can help encourage responsibility and build the self-confidence they’ll need later in life, such as getting their first job. And when your teenager does finally land their first job, you can help them in that process as well by taking them to a tax-filing professional such as RG Brenner, who has helped people all throughout the U.S. file their income taxes.