These tips can save you real money on auto insurance for your teen driver.
1. If you’re buying a car for your teen, choose an inexpensive safe car that carries lower premiums. Visit www.safercar.gov to get safety ratings on over 2,500 vehicles. If you put your teen in a high powered, expensive car, you’ll pay higher premiums and expose your teen to temptation and greater risk should he decide to “test out” his skills at high speed.
2. Shop around for insurance. If you’re putting your teen on your policy, chances are you won’t want to change your carrier. But you can use the Internet to find the rates and protection that you are looking for, often at better rates than your own carrier offers.
3. Limit your teen’s driving. Keep the mileage down to a minimum to keep the premium rate low. Lower mileage can mean a lower premium.
4. Raise Deductibles. Deductibles are the amount you pay out of pocket when you or your teen are involved in a crash. The higher your deductible amount, the lower your premium.
5. Encourage your teen to get good grades. Most carriers offer a good student discount. Many parents make getting good grades a condition of driving. No matter how you handle the issue, be sure to apply for the good student discount, and any others that may apply.
6. Use an active GPS monitor. Many insurance companies provide discounts for motorists who equip their vehicle with an active GPS tracking unit. These discounts are mandatory in some states, as the GPS unit qualifies as an anti-theft device.
7. Avoid insuring a hybrid vehicle for your teen. The IIHS reports this month that hybrids cost insurance companies more than otherwise identical vehicles running on gas. Of a dozen vehicles that are available in both conventional gas and hybrid models, ten of the 12 hybrids had higher “crash severity” than their gas-powered counterparts. When insurers pay higher claims, you pay higher premiums.
8. Complete an advanced defensive driving course. Many carriers offer discounts for teens who complete defensive driving programs. Our most popular program, which can be done at home in about 8-10 hours, is the teenSMART® program, which can save hundreds or perhaps up to $1,000 on premiums over the time your teen drives. See the web site for more detail.
Katy Lee, a school teacher and parent, says: “Even though I’ve made my share of mistakes, I am quite proud that my children are turning out to be pretty “good” people who are growing in compassion, integrity, and character. They are the fruits of my 20+ years of labor – and you thought labor was just 20 hours!
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