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10 Tips for Reducing Cost of Teenage Auto Insurance

10 Tips for Reducing Cost of Teenage Auto Insurance


If your teenage son or daughter is going to drive, there is a good chance that your auto insurance rate will skyrocket to a much higher level. Car insurance for teenagers is much more expensive compared with that for adults, mainly because the frightening statistics by National Highway Traffic Safety Administration reveals that auto fatalities are the leading cause for teenage death cases and a teenager is more likely to be involved in a serious accident. Thus, it will be the best if you can choose an auto insurance plan that covers all you need and in the meantime save some bucks for your little new driver. Here we select several most important tips for choosing and purchasing cheap auto insurance for teenagers.

1. Put your teenage drive on your policy instead of a separate policy.

The first tip is to add your little new driver on your exist plan so that you can take advantage of premium discounts (for example, you will get discount if you buy multiple policies from the same company). If you do this, then you could be able to reduce the overall cost of your policy. However, there is one exception, which is, your own driving record is poor. In that case, you should discuss with your insurance agent and it’s possible to save if you buy a separate policy for your child.

2. Make sure your coverage is adequate.

It is important that you keep in mind to increase your liability limit line if you add a child into your policy plan. If you don’t have an umbrella policy, you should really take it into consideration to purchase one. Since the umbrella policy is less expensive than the amount of liability coverage purchased, it’s a good way to reduce your total cost.

3. Good grades help a lot in getting discount prices.

If your child is good at study and can get high grade point average such as more than 3.0, then you are lucky! Some insurance companies do offer you a good student auto insurance discount and you have the chance to save around 10% with the discounts.

4. Figure out if a discount will be offered for a driving safety course.

If you find out that your insurance company provides a discount for completing a driving safety course, please enroll your child and forward related documentations concerning his or her successful completion of such courses that your insurance company requested. Maybe sometimes you won’t get the premium discount, it is always a good choice to do this to get your child better educated about safety driving.

5. You should think about what type of car to choose for your child.

Actually the criterion is pretty simple, that is skipping the sports cars. Instead, consider a car with high safety rating. Also, you don’t want to buy a car that is listed on the “most often stolen cars”. In addition, you can contact your insurance company to find out the related premium discount for various models before you buy the policy.

6. A clean driving record also contributes to decrease the cost.

If your teenage driver has a clean driving record, then you perhaps can get a discount. Please make sure your child is well educated in terms of driving laws and has good understanding of defensive driving methods. In the meantime, you should set a good example for your teenage driver. Tell him/her not to talk or text on the phone during driving. Let your child know the importance of secured seat belt and not taking too many passengers. When you teenage driver is a novice, it’s your responsibility to drive with him/her and teach him the traffic rules when he/she is operating the wheels.

7. A premium discount may be applicable if your child leaves for a college that is 100 miles away from your home.

Usually you can get a big break on your premiums if you choose to keep him/her on your auto insurance policy when he/she comes home for vacation.

8. Choose a plan with a higher deductible.

The deductible amount is an important factor to keep the teenage car insurance low. If the deductible is higher, the premium should be lower. If you pay a higher deductible, it means you are going to pay more out of your pocket when your child is involved in an accident. However, if your child is very likely to keep safety driving, then this may be a good way to save on the insurance plan.

9. Ask for lower rates after a year.

If your teenage driver has a safe driving record after a certain period, often one year, you may have the chance to request a discount from your insurance company. If your child has not been involved in any accidents or moving violation tickets, just call your insurance agent and ask about their good driver policy or a new auto insurance quote.

10. Shop around for the best offer.

Last but not the least, you should gather information from different insurance companies and pick up the best deal.

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