Saving Money on Young Driver’s Auto Insurance
One of the more important aspects of driving, which many young drivers do not think about, is the purchase and cost of car insurance. While many parents opt to add their teen driver to their own auto policy, they are very likely to see a steep rise in their insurance rates and payments. This is because teen drivers are substantially more likely to be in an auto accident and insurance companies need to cover this risk. Luckily there are some tips to help insure your teen driver without breaking the bank.
Utilize Detection Technology
After your teen gets his or her driver’s license, it is important to contact the car insurance company right away and decide whether or not the teen will be added to the existing policy. When you call, ask the insurance agent if their company offers any type of monitoring system – many insurance companies offer systems that will monitor the teen’s driving habits and can detect when the teen is speeding or diving at inappropriate times during the night. Often, if the teen shows safe, responsible driving habits with this device in the car, insurance companies will offer a large discount on the policy overall.
Consider Having Teens Get their Own Insurance
For some families, having a teen on the car insurance policy and having higher rates is simply not an option. If this is the case, it is also possible for the young driver to get his or her own car insurance policy for the vehicle. Many insurance companies offer teen drivers special discounts for upstanding behaviors – having good grades, a clean driving record, and participating in driver safety programs are all ways that teens can help lower their premium payments. Additionally, when choosing a car for your teen, make sure to look at vehicles that have additional safety features. A safer car could mean bigger discounts!
Shop Different Insurance Companies
Whether you are adding your teen to an existing policy or helping him or her purchase his or her own insurace, it is important to shop around in order to get the best, most affordable insurance price. Not all car insurance companies are created equal – some carry different discounts for teen drivers so it is always a good idea to make inquiry and get quotes from a few different organizations. It is important to remember, however, that cheaper is not always better – always make sure the right coverage is being provided for your teen driver and choose an insurance company who is willing to work with you and your family.
Having your teen attend a driving school, such as Training Wheels, an Ocean City NJ driving school, is a great way to help lower insurance rates. If you are ready to book your lessons or just want to learn more about Training Wheels, click here.
*Photo Courtesy of State Farm via Creative Commons License