Finding the Cheapest Car Insurance for Young Drivers

Your child has reached an important milestone in life and you are on a quest to find the cheapest car insurance for young drivers. Chances are your teen is ecstatic with their new independence. At the same time, you are wondering how it’s going to hit your wallet.

There’s no doubt that insurance companies are not great fans of young drivers. They know that teen drivers’ lack of experience results in a higher incidence of accidents. But there’s good news. With a little savvy research, you can find the cheapest car insurance possible.


Good Grades Pay Off

You want your child to maintain a good grade point average, and so does your car insurance company. As a general rule of thumb, the more mature the teen, the better driver they will prove to be. While there is no foolproof method to measure maturity, grades are strong barometer. Disciplined teens who keep their grades up are more likely to be responsible drivers.

When adding your teen to your insurance policy, ask about a good grade discount. And make sure they know the consequences if they slack off at school.


Don’t Start them out with a High End Vehicle

Think long and hard about starting out with an expensive car. Cheap insurance rates are next to impossible to find on a new car. If a teen does drive one of the household's more expensive cars, find out how your insurance company assigns drivers to cars. Some will automatically put the most expensive car with the highest risk driver. Others will allow you to make the choice of which driver goes with which car.


Driver’s Ed will Drive Down your Cost

Insurance companies differ in how much they value driver’s education. Some offer little or no discount. Others require extensive hands-on instructions before they will give a discount. And some are gracious enough to provide their own videos or educational material and offer a discount to those using them.


Self-insure Whatever you Can

Higher deductibles equal lower costs. Take a look at your financial situation and determine the highest amount you could cover in the worst case scenario. A deductible of $200, for example, compared to $2,000 can make a tremendous difference in what you pay.

If your teen is at fault in a relatively minor accident, you might be better off paying out of pocket rather than filing a claim. Insurance companies will usually adjust your premium upward starting with the first claim.


Shop Around

You might be perfectly happy with your current insurance company, but don’t go with blind loyalty. Never assume you are getting the best deal until you compare rates with at least three insurance companies. This is the perfect time to review all your coverage – including homeowners. Many companies offer multi-line discounts if you place both your homeowners and auto insurance with them.


You can find Cheap Rates

Having a teen driver can be nerve-wracking, but finding cheap rates does not have to be. Do your homework and the teen should be involved. It’s important to understand that auto insurance is serious business – and actions play a key role in keeping the cost reasonable.