Young driver insurance that is cheap? In most cases this is an oxymoron. Teenagers are one of the most expensive age bracket when it comes to car insurance. This is due to a combination of their lack of driving experience and often times questionable judgment.
However, there are ways to reduce that insurance bill. Below you’ll find 7 ways to save money on your teenager’s car insurance.
1. Your Policy
While it might be tempting to get your child a personal insurance policy, you may be able to save money by adding her to your own car insurance. Of course, this will increase your own premium but it may be cheaper than having to pay for two separate policies. Check with your current insurance carrier to see if this is a possibility.
2. Good Grades
Good grades help your student get into a better college. At the same time they can help reduce the amount of money you pay for car insurance. Does your student maintain a B grade point average? If so, you qualify for a lower rate on young drivers insurance.
3. Less Insurance
It goes without saying that the more insurance you opt for, the higher your premium. Full coverage is the best option since you’ll be covered for any type of damage or injuries resulting from an accident involving your teen. However, you can save a significant amount of money by just taking liability coverage which is the minimum insurance required by law by most states.
4. Higher Deductible
The higher the deductible you choose, the lower the insurance premium. In many cases, anytime you make a claim the insurance company will raise your rates. So it doesn’t make sense to claim any losses unless they are of a significant amount. A higher deductible is a smart way to save money on young driver insurance.
5. Newer Car
Newer cars are loaded with safety features such as anti-lock brakes, driver and passenger air bags, automatic seat belts, security alarms and daytime running lights. Not only will your child have better protection in case of an accident, most insurance companies will offer discounts for the various safety features found standard in newer cars.
6. Cheaper Car
At first glance a cheaper car seems to conflict with the previous suggestion involving a newer car. However, you can have both a cheaper and a newer car. This means don’t go about buying a BMW or Mercedes for your teen if your priority is cheap young driver insurance. Cheaper cars like a Honda Civic have lower insurance costs than more expensive cars. And as a bonus their maintenance is less expensive too. Plus any dings and scratches are not as painful!
7. Multiple Quotes
This is an absolute must but if you want to save money on your teenager’s car insurance you absolutely must get several quotes from different insurance carriers. You’ll be amazed by how widely insurance premiums can vary for identical insurance coverage. This may seem like a lot of work but nowadays it’s very easy to get upwards of 10 quotes online just by filling out a single form. And the insurance savings will be well worth your time.
These 7 ways will certainly help you save money on young driver insurance. It may still be more expensive than you would like but take heart that insurance premiums will reduce as the age and experience of your young driver increases.