Young drivers are likely to raise your auto insurance rates. These drivers have little to no experience. They are also more likely to be reckless. As a result, most car insurance companies charge a bit more for coverage on their vehicles and to insure the driver. However, there are a few ways to help you to reduce costs. Consider these tips to save money with a teen driver on your auto insurance.
#1: Keep the Vehicle in Your Name
Sure, you may want to provide your teen with a new car in his or her name, but doing so is expensive. When the vehicle belongs to the parent, the premium costs are likely to be lower. If you do not want to be responsible for the vehicle, though, this may not be the ideal scenario. However, simply keeping the vehicle in your name is best - even if your teen pays the costs for the car.
#2: Keep Grades Up
Good grades are a fantastic way to reduce car insurance costs for teen drivers. Check with your insurer about this opportunity. In many situations, the teen who maintains above average grades may qualify for a good student discount. This comes back to risk. While young drivers are a higher risk, those with good grades are less likely to be reckless. This comes from data developed by insurance companies.
#3: Bundle Your Coverage
Allow your young driver to remain on your policy. Instead of a separate policy for the driver (not just the car), keep all vehicles and drivers in the home on one policy. By bundling like this, you reduce the costs significantly overall.
#4: Teen Driving Courses
Many states require teen driving courses prior to getting a license. However, taking refresher courses or enrolling in defensive driver courses can show the insurance company you are serious about safety. Ask your insurer if any of these discounts for courses could help reduce costs.
#5: Avoid Driving Violations
Car insurance costs will drop over time. They typically will fall as a teen gets older and remains accident- and claims-free. Teaching your child there are not only safety risks, but also monetary losses associated with reckless driving is important.
By being proactive like this, most teens can reduce their car insurance costs at least somewhat. Your auto insurance agent can work with you to ensure you have the lowest rates possible.
Also Read: What Is Buzzed Driving and How to Avoid It