When your teen begins driving, everyone is filled with mixed emotions. Excitement and fear get the best of everyone, but you don’t need to add the cost of auto insurance to that list. Don’t just throw your teen on your auto policy without knowing the best way to do it. Here are ways to save money on your teen’s auto insurance.
Using Driving Tracking Devices
Many auto insurance companies are allowing customers to save money on their premiums by allowing them to track their driving habits. These devices will pick up data such as the time of day you’re driving, your speed, and how hard you hit your brakes. It’s a great way to make sure your teen is driving responsibly while saving cash.
Make a GPA Rule
Most major insurance providers have a type of “good student” discount. The discount allows teens to save money on their auto insurance as long as they maintain a certain GPA. It’s usually a B average, but it depends on the insurance company. Let your teen know that he or she can only be on your policy as long as they qualify for the discount.
Don’t Finance a Vehicle
Teen insurance is high because they are more likely to be involved in an auto accident due to immaturity and inexperience. If you finance a vehicle for your teen, your full coverage insurance is going to be very high because of the high chance of it being wrecked. You will save a considerable amount of money if you purchase a vehicle outright.
Buy a Safe Vehicle
If you decide to take the advice of not financing a vehicle, make sure you still buy something with as many safety features as possible. The more safety features a vehicle has, the less expensive it will be to insurance. Most companies will give you a “safe vehicle” discount too. Look for features such as anti-lock breaking system, anti-theft devices, backup cameras, and anything else that will keep the driver safe.
Ask About Safe Driving Discounts
Most insurance companies offer discounts to safe drivers. While your teen won’t qualify for one for having a clean driving record, he or she may be able to take a safety course, test, or something else to earn a discount. Be sure to ask your insurer if there is a discount offered and what your child has to do to qualify.
Add to Your Policy
It might be tempting to tell your teen to handle their own insurance, but adding them to your policy can save money. Many companies will offer lower premiums for having more cars and drivers on one policy. If you have your home mortgage and any other types of insurance bundled on the policy, you’ll save even more. If you want your teen to pay for the insurance, you can look at how much the one vehicle costs and have them pay you the premium for it.
Car insurance is never cheap when it comes to teenagers, but you can do some things to make it less expensive than it has to be. Don’t start a policy until you have explored all of your options and discounts.
Infographic created by Capital Auto Auction