When it comes to oxymorons, it’s hard to beat “inexpensive car insurance for teenagers.” As parents of young drivers know all too well, it costs a pretty penny to keep their teens insured.
Still, there are plenty of ways to lower premiums for teenage drivers to make your overall insurance policy more budget-friendly. Here are five tips to help you find affordable car insurance for your teenage drivers:
1. Shop Around
While getting cheap auto insurance for your teen may be challenging, you can easily compare rates with different companies to find the best deal. The choice is yours. You can either shop around with different companies, or you can check out articles that evaluate rates with a number of large car insurance companies. You might be pleasantly surprised to learn that switching to another company will give you and your teen great coverage but at a lower price.
2. Cash in on Good Grades
These days, getting good grades means more than earning a college scholarship and opening the door to future career opportunities. In fact, teens who maintain a “B” grade average or better or who are in the top 20% of their class will often qualify for lower car insurance rates. To cash in on good student discounts, find a copy of your teen’s report card, and if he or she meets the criteria, call your agent to see about getting a good grade discount.
3. Increase Your Deductible
Another effective way to pay less for your teen’s car insurance is to increase your deductible. For example, if you raise your deductible from $250 to $1,000, you should see significant savings on your car insurance bill. Granted, if someone in your household is in an accident, you’ll have to pay $1,000 out of pocket. But if you can make it work, consider putting some of your monthly savings toward your car insurance, with the goal of setting aside $1,000.
4. Ask About Vehicle Monitors
Some car insurance companies offer a driving monitor program to their policyholders that tracks what you’re doing while behind the wheel. If you’re comfortable with your and your family’s driving habits being monitored, you may qualify for a discount on your premiums. Of course, the flip side of this is that your teen or someone else in the family could wind up getting a speeding ticket or other moving violation that will raise your rates rather than lower them. But it still might be worth a quick call to your agent to discuss this option.
5. Find Discounts for College Students
If your teenage driver has graduated from high school and is heading off to college, he or she may qualify for a student-away-at-school discount. Some parameters do apply; for instance, your college student must be under the age of 25, and the college or university must usually be 100 miles or more away from home. In other words, this discount is meant to reward families whose college-aged teen is not regularly driving any vehicles covered under your policy.
Savings are More Than Possible
Car insurance for teenagers will likely always cost more than what you pay for yourself and other older adults. But it’s reassuring to know you may still be able to lower your premiums, even if it’s a small amount. Start by shopping around and comparing rates with other companies and then look into any and all discounts for which your teen may qualify. Who knows? This multi-faceted approach may end up saving you a significant amount each month on car insurance.
Leave a Reply