When shopping for car insurance for teenagers, it can be a challenge when it comes to get low insurance rates. In fact, you will never find really low rates for covering teenage drivers, but you can lower them somewhat with some good information. So, here are some tips on how to save money when insuring your teenager.
Make Them Take A Drivers Education Course
Make sure that you have your teenager take a driver's education course before ever applying for his/her learner's permit. This will also help you save 10% to 15% on the car insurance when you add the young driver to your policy. So, make sure that your teenager enrolls in and passes a driver's education course as soon as possible in order to receive lower rates.
Encourage Good Grades
Many car insurance companies also reward students that get good grades with lower insurance rates. Insurance companies know that students that study hard and get good grades also usually make much more reliable drivers that follow safety rules and regulations. So, in return for young driver’s good grades, the insurance company will reward you with 15% to 20% discount on your car insurance premiums.
Encourage your child to study hard and maintain an A or B average to qualify for the discounts. Let them know that their privilege to drive will be tied to their ability to help you maintain affordable insurance on them. So, no good grades = no low insurance rates = no driving. They will get the picture.
Let Them Drive a Cheaper Car
Don’t give into to requests for the latest sports car or popular teenage car model. Although, we all want to give our kids what they want, a cheaper car is a lot more practical. Not only will you save a lot on insuring your young driver, should anything go seriously wrong—you won’t be out as much money. A cheaper car can save you hundreds of dollars a year over a more expensive, trendier model in car insurance premiums.
Choose Higher Deductibles
Always choose the highest car insurance deductibles you can afford when insuring your teenager. Instead of a $100 or $250 deductible, choose a $500 or $1000 deductible. Although the deductible will be considerably higher, you may find that the amount of money you save on monthly car insurance premiums will more than make up for it. Call your agent and ask how all different levels of deductible will affect your monthly car insurance payment when you had your teenage child to your policy.
Just as you would when you are shopping for a policy of your own, you should make sure that you compare policy rates from several different insurance companies. While it is never a good idea to change insurance companies before it's time to renew, you might want to go ahead and start searching for rates from other companies. If possible wait until it is time to renew your possible policy before switching companies as many insurance companies have cancellation penalties if you cancel the coverage early.