Expect to Pay More for Teen Car Insurance
One thing is for certain…if you are new teen driver, you can expect to pay considerably more for your insurance than virtually any other category of driver. As a new driver, the insurance company knows they are taking a significant risk in offering coverage. However, while the rates can be considerably higher than an experienced driver, there are some things that can be done to lower the costs.
Tips for Teens Needing Car Insurance
More than likely, Mom and Dad are going to be covering this bill, so you should do what you can to help make it as painless as possible. There are numerous factors well within your control that will help to lower the overall rate of coverage.
1. Take Your Schools Drivers Education Course – many schools today offer some type of driver’s ed class for students. If this is available, sign up for it!
2. Take Driving Lessons – taking lessons with a certified driving school will provide honest feedback as well as help discount your insurance rates. If possible, schedule the driving school to take you to the actual driving exam. The more practice you get, the better you will be.
3. Keep Your Grades Up – teen drivers are offered very few breaks when it comes to insurance premiums, but a good grade discount is one of them. In most cases, you will need at least a B-minus average to qualify.
4. Get a Used Car – the newer and fancier the car, the higher the premium. When you go shopping with Mom and Dad, tell them you want to look at older, safer cars for your first purchase. It will show some responsibility on your part and make it much easier on their wallet.
5. Look at Higher Deductibles – if you have some extra cash put aside, offer it up as a portion of the deductible. For instance, if Mom and Dad are looking at $1,000 deductible policies and you have $500 put aside for a rainy day, put that money on the table and have them look at $1,500 deductible policies. Again, it will be appreciated and show some responsibility.
Tips for Parents Shopping for Teen Car Insurance
While insurance rates sometimes go down for multiple cars on a single policy, this is not always the case when it comes to teen drivers. Their lack of experience usually means a higher rate, not a lower one. Here are a few tips to help you get a better rate when you are trying to find coverage for your new teen driver.
1. Buy Sensibly – we recommended above that the kids ask for a sensible car, but we know that will not always be the case. Buying them something sensible will be safer as well as costing far less to insure.
2. Level of Coverage – while it is far more likely for your teen to have an accident when compared to experienced drivers, getting full coverage may not be a sound financial decision. Of course, a major factor in this decision will be the type of car you get for your teen. Older cars that are not financed fall easier into this category.
3. Don’t Buy Right Away – if there is already a car available for your teen to drive when needed, you may not need to get dedicated insurance for them. You may be able to get a rider on your current policy to cover occasional drivers (meaning not the primary driver/owner of the vehicle). It will cost far less to insure them in this manner than if they are the actual primary of the vehicle.