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How to Save Money on Teen Auto Insurance—6 Tips

How to Save Money on Teen Auto Insurance—6 Tips

Although some parents try to avoid it, there is always a time that your teen gets passed the driving test from the Department of Motor Vehicle and obtains the driver’s license. Once obtained the driver’s license, as parents you should know your next move is to buy your teen a car and allow him or her to drive your family car. Additionally, the auto insurance should also cover the new driver, which costs you more money. In fact, there are some ways for parents and teens to save money on the auto insurance and here are six tips.

1. Good grades help a lot.

Ask your teen to maintain good grades at school because many insurance companies provide discounts to teens that have a grade of at least B. Asking your teen to study a little bit harder not only help save money on the auto insurance policy, but also serves as a motivation for her to keep up the good job.

2. Take safe driver courses.

Taking a safe driving course, also known as Point and Insurance Saving Program (PISP), or Drivers Safety Course in certain states, can also help save money for teen auto insurance rates. Please keep in mind, before you send your teen to the course, you should make sure what the school is offering is state and insurance company, in case the effort may be in vain.

3. Try to keep clean driving record.

This is not for teen driver only, but actually applicable for every driver. Once your teen driver gets the drivers’ license, she should spare no effort to keep a clean driving record because some insurance companies penalize new teenage drivers that breaks up the traffic rules. It is parents’ responsibility to stress the importance of keeping violation-free record for your teen.

4. Buy a safe car.

A safe car here means a car that is equipped with vehicle traction control, anti-lock brakes, and also at low risk of vehicle turn over, vandalism and theft. Look at the most stolen car list from MSN and you can get a basic idea of what models should be avoided. After all, the auto insurance companies regard the teen drivers to be insured with a higher risk than a seasoned driver. Hence, it is your best choice not to increase the risk factor by buying a car that is known to be at high risk for theft and insurable loss.

5. Talk with the insurance agent.

It is ok to apply for the auto insurance online, but you have more chances to save money when you schedule a phone or face-to-face discussion with an insurance agent. Insurance agents know better about the discounts, which are infrequently offered by insurance companies. Through the conversation with an agent, you are able to ask more information about the underwriting process and probably the divulge information can make the agent add more discounts to your policy purchase.

6. Ask and shop around.

You should ask around for quotes from different insurance companies. Always have at least two insurance quotes before you make any decision on choosing insurance policy.

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