Car insurance for young drivers can be quite expensive. If you don’t know what to look for you can end up paying hundreds of dollars more in premium per year. The good news is that most insurance carriers offer many discounts that you can take advantage of, if you just ask for them. After reading this article you will be equipped with the knowledge to save some big bucks when shopping for insurance for your teen driver.
Your default instinct might be to go out and purchase a personal insurance policy for your child. As long as he is at least 18 years of age this is a valid option. However, you can save a lot of money by adding your child to your own policy. Note that this will cause your policy premium to go up. But in most cases the total amount of money you’ll be spending per month will be less than if you were paying for two different policies.
Most insurance companies offer discounts for safety features which are found standard in many of today’s newer model cars. These include features like anti-lock brakes, air bags, automatic seat belts, daytime running lights and security systems. If your teen doesn’t already have a car but is planning on getting one, try to make sure it is a newer model car. The car might cost more but it will be safer, require less maintenance and you’ll save on young drivers insurance. These extra benefits may outweigh the additional cost of a newer car.
The minimum insurance coverage that most states require you to take is liability insurance. Taking this minimal level of insurance will keep your premium the lowest. At the same time you may not have enough coverage in case of an accident caused by your child where there is property damage or injuries to other people. The resulting expenses can add up to several thousands of dollars. So it is generally a good idea to go with full coverage when it comes to car insurance for young drivers. It will be more expensive but the peace of mind knowing that you are covered in all cases will be priceless.
If your young driver is a student with good grades, then he may qualify for additional discounts. Most insurance companies require students to maintain at least a B average to qualify. You will have to supply some proof of good grades like a transcript to qualify for the discount. In addition the fewer the miles the student drives to school or college, the lower the premium for car insurance for young drivers. If your child goes to college and lives off campus, encourage him to live closer to campus. Note that some insurance companies will not allow you to insure him on your personal policy if his college is more than 100 miles away. Check with your insurance company for all the criteria that can affect the policy’s premium for a student driver.
Your local department of motor vehicles will offer some kind of driver’s safety and driver’s education courses. Enrolling your child in these courses is not only a great way to improve his driving but you may also qualify for some additional discounts when it comes time to insure him. Moving violations like speeding tickets can drastically increase his insurance premium so make sure he understands the consequences of breaking traffic rules.
And lastly, make sure to get quotes from several different insurance companies. You’ll be surprised to find how much the premium may vary for identical coverage. By following some of these tips you’ll be sure to save money on car insurance for young drivers.