5 Tips for Buying Car Insurance for Your Teen
As a parent of a teen approaching driving age, you’re probably interested in finding affordable car insurance. Unfortunately, insuring a teen driver is usually quite expensive. That’s because insurance companies calculate premiums based on certain risk factors, including lack of driving experience, reckless behavior, inability to recognize hazardous situations, and drunk driving. Since teenagers are inexperienced and vulnerable to temptations, such as driving at high speed and driving under the influence, the probability of being involved in motor vehicle crash is quite high, and so is the insurance premium.
How to Save on Car Insurance for Your Teen
According to the Centers for Disease Control, teen drivers are four times more likely to cause a car accident than older drivers. Since this raises the stakes for insurers, its no wonder that finding affordable teen car insuranceis difficult; however, it’s not impossible. Below, you can find five viable ways to keep your teen’s auto insurance premium in check.
1. Choose the Car Wisely: The type of car you choose for your teen has a significant impact on the insurance premium. The things you should pay attention to when getting a car are the make, model and year. Since high-performance and brand-new cars are expensive to insure, the best way to reduce the cost of car insurance for teens is to get a three to four-year-old car in good working condition. Further, modern safety features – such as stability control, anti-lock brakes and airbags – can help you get a good discount on insurance. To find out the cars with the highest safety ratings, access the Insurance Institute for Highway Safety.
2. Look for Special Teen Driver Discounts: Many insurance companies offer teens discounts if they’re good students, have taken a safe driving class, or are low-mileage drivers. If your teen is eligible for this type of discount, he or she may receive between 5 and 10 percent off the original premium.
3. Add Your Teen to Your Policy: Another thing you can do to save on car insurance is to add your teen to your policy. Before choosing this alternative, there are a few pros and cons you should know about. First, you can get a multi-car policy discount, which can save you some money. Additionally, you can use your clean driving record to ask for a better deal. Getting a discount may offset the costs of adding an inexperienced driver to your policy. On the other hand, adding your teen to your policy may not only increase your premium, but also make you lose policy perks if he or she gets multiple violations or causes an accident.
4. Increase Your Deductible: The deductible represents the amount you have to pay before your insurer pays any expenses relating to a claim. Once you cover the deductible, your insurer will take care of the rest. Although opting for a higher deductible can help you lower your premium, increasing the amount you’ll pay out of the pocket in the event of an accident carries the risk of paying more than the premium savings you might accrue.
5. Compare Different Policies: Since car insurance is a highly competitive niche, some insurers are willing to offer low insurance rates in order to attract more customers. The easiest way to compare different offers is to use websites that allow you to evaluate quotes from multiple insurance providers at once.
There is no doubt that finding affordable auto insurance for teens is difficult. But, whatever you choose, make sure that your teen is well insured. Failure to do so may lead to unwanted consequences, including paying fines and covering retroactive premiums for your teen.