Is Your Teen Driver Insurance Driving You to Bankruptcy?
By Paul Pukis
July 2, 2014
So, it's no surprise that adding a teen driver to your auto insurance policy will inevitably bump up your premium--significantly. But following a few simple tips can help keep it from breaking the bank.
As the parent or guardian of a young driver, you understand how important it is to have good car insurance to protect them.
The dangers of an inexperienced driver is well documented. According to the Institute for Highway Safety, teen drivers are four times more likely to be involved in a car crash than older drivers.
And this added risk to your insurance company is enough to bump up your insurance premiums.
Fortunately, there are some ways you can help lower the cost of a young driver policy:
Tip 1: Raise deductible
Raise your comprehensive and collision deductibles to at least $1,000. This will lower your monthly premium. By avoiding filing small claims you can ensure that you will keep your claims-free discount.
Tip 2: Pair your coverage with your car’s value
If your older car is worth just a bit more than your deductible, you can drop collision and comprehensive coverage entirely. The car's Kelley Blue Book trade-in and retail values can help guide you.
Tip 3: Drive a safe car
Having your teen drive a safe car will not only give you peace of mind but will help keep your automobile insurance affordable. Making sure that your vehicle has full front-seat airbags or automatic seat belts that work automatically when your door closes make your car safer and may influence your premiums. Safety ratings can be researched using the Insurance Institute for Highway Safety website. You may be able to get a better deal on cheap teen auto insurance when you insure a vehicle with.
Tip 4: Encourage your teens to perform well in school
Many students who have a high grade point average are more responsible and better drivers- and can qualify for a discount. If your young driver earns a B average or better, you might be able to save up to 20% on your premiums. Contact your insurance provider to see if you qualify.
Tip 5: Install an anti-theft device and park in the garage
Your insurance premiums may reduce when you install an anti-theft device in all your vehicles. The discount will vary based on the type of device installed and the state in which the vehicle is garaged.
Tip 6: Ask about discounts for teen driver programs
Some insurers will offer discounts for a passing grade in a certified driver’s ed class, a defensive driving class, or other certified program. Driving courses may save you up to 15% on teen insurance premiums, according to the Independent Insurance Institute. Be sure to check with your insurer before paying for an expensive private class.
Tip 7: Don’t lower liability coverage
Make sure you have liability coverage of at least $250 000 per person, $500,000 per accident and $250,000 for property damage (or a policy with a "combined single limit" of $500,000, when available, which doesn't limit the coverage to $250,000 per person involved in the accident). Since teens are more likely to get into an accident, any savings made on your premiums for lower liability could cost you tens of thousands in the likely event of an accident.
These 7 tips are proven ways to save while insuring your new driver. Mosaic Insurance has tons of other advice that can help your family reduce premiums and gain coverage to meet your needs.
As much as you may not want to admit it, your driving record has a lot to do with the rates you'll get for your young driver insurance. Insurance companies believe the old adage, "the apple doesn't fall far from the tree" stands true regarding car insurance. The more colorful your driving record, the higher your base premium is and the larger the factor will be when determining the auto insurance cost for your new driver.
Contact us today for your no-hassles consultation. As your local Teen Driver Insurance Specialists, we compare rates with dozens of top-tier companies that have low rates for families with young drivers to make the transition as financially easy as possible.
You can reach us at 425.320.4280 or SuperAgent@MosaicIA.com