Automobile insurance for teens is ever-increasing. Families with one or multiple teen drivers see their insurance rates skyrocket. Unfortunately, there are good reasons why car insurance rates for teenagers are through the roof. Fatal car accidents are the number one killer of young adults ages 15 to 20. Drivers in this age range are three times as likely to be killed in a car accident compared to older drivers. A 16 year old driver who just received their license is three times as likely to wreck their car compared to a 19 year driver and six times more likely than a driver in his/her early 20’s. Adding a teen to your existing plan can nearly double the cost of insurance. Car insurance for young drivers continues to rise every day, but you and your teen driver can offset the cost of insurance by following these money-saving tips.
1. Good Student Discount
Teenage driver’s insurance can be greatly mitigated by good grades. Insurance companies offer up to a 25% reduction in cost for averaging a B or better grade point average. Studies show that students with higher grades tend to be better, safer drivers. Insurance companies believe good grades demonstrate an ability to handle responsibility seriously. Encouraging your teen to do well in school can have great advantages when buying car insurance.
2. Enroll in Driver’s Ed
Another way to decrease car insurance for young drivers is to enroll in a driver’s education program. Some insurance companies will reduce the cost of insurance on approval of the program. Driver’s education courses educate new drivers on current driving laws and the rules of the road. In addition to becoming a safe and educated driver, passing a driver’s education course might see up to a 15% discount on the cost of insurance.
3. Buy a Safe Car
Whether you buy a used or new car for your teen, there are many options such as fast coupes, mid-sized sedans, trucks, and SUVs. Each type of car has its own characteristics and problems. Small cars are easily damaged in accidents and larger vehicles are prone to rolling over at higher speeds.
To combat the dangers of driving, it is wise to purchase a car abundant with safety features. Most importantly, make sure the car you buy has airbags. Airbags provide a soft surface to hit in case of an accident. In addition, the presence of airbags oftentimes qualifies for significant discounts.
4. Take a Safe Driver Program
If your insurer offers a safe driver program, it can be beneficial in multiple ways. Teen drivers will be educated in safe driving practices and the consequences to speeding and running red lights. You may receive a discount for enrolling your teen in one of these programs. Even if no discount is offered, learning to obey the rules of the road can help avoid costly tickets. When a teen driver gets even just one ticket, insurance premiums increase very quickly and substantially.
5. Drive an Older Car
Teens driving older and heavier cars tend to drive slower and safer. Older cars have been shown to be safer and driven less recklessly. Insurers like to award lower rates to teens who drive older and slower cars. In addition, insurers usually assign the most dangerous driver (your teen) to the most expensive car on the insurance plan, so families can save money by buying an older car instead of a brand new car for the teen driver.
Car insurance for teens is a huge expense. New drivers have to continue driving for years before they get a break on the cost of insurance. However, by taking a few proactive steps, a teen driver can greatly reduce the cost of their insurance. Shop around for insurance and compare plans before you select a particular company. Be sure to follow the steps outlined in this article and you will find the cost of insurance to be much more manageable.