Finding cheap car insurance for young people can be a tough task. However, there are some ways to get lower rates for your teenager that are easy to do. Getting discount auto insurance for your teen driver is the best way to get a lower rate, and here are some of the discounts you can take advantage of.
Good Driver Discount
This one will not be an immediate help, but over time, it can kick in. Just like building a good, clean credit history, you also want to build a nice driving history. You don't want any accidents or ticket violations on your record. If you can keep your record clean, over time your rates will decrease. After a couple years, you will be eligible for a good driver discount, and this can create some nice savings.
Good Grades Discount
The good grades discount refers only to students, but usually undergraduate or graduate college students. Research shows that students with good grades in the classroom are less likely to get into an accident due to increased responsibility. Because of this less risk, insurance companies reward good students with a discount. The grades needed are not that high, usually around a B average, or 3.0 equivalent. Every company has a different standard though, so call your provider to make sure of their unique discount requirements.
Defensive Driving / Driver's Ed
If you are just starting out driving, you will want to take a driver's education course for a couple of reasons. First, you get hours of experience behind the wheel of a car with a certified driving instructor. You also get hours in the classroom as well learning the rules of the road, as well as techniques for safe driving. The other advantage is that driver's ed offers an insurance discount. It varies by state, but can usually be 10 to 20 percent worth of savings for two to three years off of your premiums. This is the biggest deduction on your teenager's auto insurance rates you can get. If your discount runs out, you can try to go to a defensive driving course. In essence, it is the same thing, except condensed into a five hour course with no driving. It comes with the same discount structure usually as well.
Used car insurance for a teen driver is normally going to be much less than that of a new car. An older car usually will be less to repair, and because of that, offer lower insurance rates. Also buying a less expensive car will have the same insurance benefits.
Low Mileage Discounts
For teenagers, they often drive less than the average 10,000 to 12,000 miles that most drivers put on their cars each year. You can take advantage of low mileage discounts if you don't plan on driving that much. It is a very real possibility, especially if you are at college and only using your car for a couple months out of the year. You can agree to not surpass a certain mileage and in return, you can get a lower rate.