So the day has finally come! The day of reckoning. That is, your teenager has passed their driving test and is now the proud owner of a driver’s license.
Not only are you stressing out about their safety while they drive around on the roads, but you also have to contemplate how exactly you will afford to pay for car insurance for your teenage child. Keep reading for some tips that can help you get cheap car insurance for young drivers.
Young Men Are Charged More for Insurance Than Young Women
In general, a younger driver is charged a higher insurance premium than someone older. But even if the younger driver at 16 has more experience driving on the road than a new driver of 25 years old, the younger driver will have a higher premium.
Even though younger drivers have to pay more for insurance than older ones, younger men have it even worse. They are charged the highest insurance premiums, more so than younger women.
Keeping all these stats and figures in mind can help you figure out better how to get the cheapest car insurance for young drivers.
Shop Around for the Cheapest Rate
The best thing you can do for your teenager is to spend some time shopping around for cheap auto insurance. There are so many insurance companies out there now since it’s such a lucrative market.
Call a few of them or go online to their websites and get quotes from all of them. You will notice that there will be quite a range of premiums offered to you as quotes.
Once you have these figures, then you can start looking at the various discounts available to your teenage driver and that should help you reduce your monthly payments even further.
Figure Out What Kind of Discounts the Insurance Company Gives
Every insurance company offers different kinds of discounts. Check first with the school or university that your teenage driver goes to – they will probably offer some discounts on insurance through the companies they work with.
Also, if your teenager is part of any organizations like Boy Scouts or some other fraternities, make sure to check with them if they offer any insurance discounts.
Finally, there are some other discounts to enquire about like:
- Good Grade Discount – if your teenager is smart and has a good GPA, they could get a discount on insurance
- Defensive Driving Discount – when your teenager takes a defensive driving course, this offers them a chance to get a discount on insurance
- Student Away-at-School Discount – if your young driver is away at university or college, they could qualify for a student-away discount
It might seem like a bit of work to call all these organizations and find the appropriate discounts for your car insurance policy, but it’s well worth it. Even if you saved $50 on your car insurance premium monthly, that translates to $600 over a year!
Bundle Your Auto and Home Insurance Policies
This one you might already be doing, but it’s well worth to look into it again. If you are adding another driver to your insurance, then it’s important to look at as many discount options as possible.
When you bundle your auto and home insurance with the same insurance company, make sure you ask them to give you a discount for doing so. Most insurance companies would be happy to oblige.
Leave Them on Your Insurance Until They Move Out
Sometimes getting a separate insurance policy for your teenage driver is a pain since it can be exorbitantly expensive. It might be a better idea to leave them on your insurance policy as a secondary driver. That is, until they build up enough experience and get older, at which point their insurance premiums won’t be as high.
It doesn’t even have to be a parent whose insurance policy they can get on. Any guardian can add a teenage driver to their policy.
This is only until they live in your home or are dependent on you (even if they are at college). Once they move out, they will have to mandatorily get a separate insurance policy.
Make Sure the Car They Drive Has a Good Safety Rating
There’s no need to get too influenced by your teenager and get them that sporty car that they were begging you for.
The best idea for a new driver like them is to have access to a automobile with high safety ratings. Not only will this be safer for them, but it will also reduce their insurance premiums.
Avoid getting expensive high-tech cars for your teenager. Wait until they have gained a few years of driving experience before you do that.
Think About Paying Your Premium Upfront
Another thing that can help reduce your monthly insurance payment is if you pay the insurance premium in advance for the year. This might be a big chunk of cash and you will probably have to plan your annual budget around this huge expense.
But it can help you reduce your insurance payment, and that can make things more financially sustainable for you and your teenage driver.
A Higher Deductible Will Also Help
Finally, you can get a higher deductible on your insurance. Rather than having the insurance company pay for all damages, set it up so that you pay for the first $1000 of damages, and then the insurance company covers anything after that.
Check with the insurance company to see how this affects your monthly insurance premiums and adjust your deductible accordingly.
Insurance for Young Drivers Doesn’t Need to Be Unaffordable
It’s a myth that insurance for young drivers is beyond the reach of most normal households. If you use the tips laid out above, you will be able to find a cheap and good insurance for young drivers.
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