Your teen is finally behind the wheel. Whether you have eagerly anticipated this day or dreaded it, it has arrived, accompanied not only by a new sense of freedom but also by a lighter wallet. Unfortunately, when their teens get behind the wheel, parents often experience an increase in their auto insurance rates. However, we’ve put together some tips to help you save money and offset the cost of adding a teen driver to your auto insurance policy.
How the Vehicle You Choose for Your Teen Driver Can Affect Your Car Insurance Rates
Will you be purchasing a vehicle for your teen driver to call his/her own? This decision can affect your car insurance rates significantly. If your teen driver shares a family car instead of driving his/her own vehicle, you will enjoy substantial savings on your auto insurance. Aside from having one less vehicle listed on your policy, this would also mean that your teen would have limited access to a car, and less time on the road means less risk.
However, should you choose to get your teen driver his/her own vehicle, there are certain factors to consider that can help keep your car insurance rates as low as possible. The type of car you select can affect your rates considerably, and while your independent insurance agent can offer you advice in regard to which models may cost less to insure, here are a couple of factors that may help you narrow down your options:
Purchase a used car for your teen driver. Although a brand new car may seem like the safest option, it typically represents the more expensive route when it comes to auto insurance. Investing in a used but newer model can be one way to get a dependable vehicle while preventing a spike in your car insurance rates.
- Safety rankings are important. Regardless of whether you are leaning toward a new or used vehicle, it’s wise to check the safety ratings for all models you are considering. Placing your teen driver behind the wheel of a safer vehicle will positively affect both your premium as well as your peace of mind.
Ways to Offset the Cost of Insuring Teen Drivers
In addition to carefully choosing the type of vehicle your teen driver will operate, here are several other tips on ways to save money on your car insurance:
- Increase your deductible. Raising your deductible will typically lower your premium as well as prevent you from reporting small claims, which affects your rates over time.
- Assess the value of any older cars you own. Try to determine if you are paying more in premiums than you could get back from your insurance company in the event that your vehicle is involved in an accident. If you are, it might be a good idea for you to drop the collision and comprehensive coverage on your older vehicles. If you are unsure, you can always contact your independent insurance agent for advice.
- Take advantage of multi-policy discounts. Does the company that insures your vehicles also insure your home? Many insurance companies offer discounts if you secure both your homeowner and auto insurance policies through them.
The thought of reducing your liability insurance coverage to offset the cost of adding your teen driver to your auto insurance policy may cross your mind, but in the long run, this may not be a wise decision. With teen drivers more likely to get into car accidents than older drivers, it’s actually more important than ever to carry adequate liability insurance after adding a teen driver to your policy. In the event of a serious accident, carrying less liability insurance than needed to cover the damages would leave you responsible for financing the bill for anything beyond your liability limits.
Auto Insurance Discounts for Teen Drivers Exist
Just as experienced drivers can score savings on their car insurance, teen drivers can earn discounts as well. Consider the following ways to save:
- Wait a year or two if possible. Although it may not be the most popular decision, especially in your teen’s eyes, having your child wait until 17 or 18 to get his/her license can help reduce the costs of insuring a new teen driver.
- Enroll your teen in a driver training program. Driver safety courses will not only help teach your new driver safe habits behind the wheel, but they may also help reduce your auto insurance rates.
- Maintain good grades. If your teen driver maintains a B average of higher, most insurance companies will offer you a car insurance discount.
Contact Your Independent Agent to Help You Compare Costs and Secure the Right Coverage
Like with many other types of purchases, some insurance companies offer more competitive rates on auto insurance for teen drivers than others do. If a different company could save you a significant amount of money on your car insurance, than you may wish to consider switching from your current company. However, if you’ve had your coverage with the same company for many years, it may be worth remaining with this company, especially considering that your long-term relationship with your carrier could go a long way in the event of a claim. For help comparing companies and determining which offers the best coverage for you and your teen driver at the lowest possible rate, it’s best to contact your independent insurance agent.
At Knapton, Reade & Woods Insurance Agency in Hillsborough, NH, we represent many reputable insurance companies and work with them to find the best rates and coverage options for each of our clients. If you’re starting to look for auto insurance for teen drivers that won’t put a dent in your savings account, you can rely on our agents to design an affordable, dependable policy that will help you save without sacrificing coverage. To get a free quote for auto insurance in Hillsborough, NH or the surrounding New Hampshire towns, please call us today at 603-464-3422 or click here to submit our online quote form. For additional insurance resources and valuable safety tips, please read our blog, or visit us on Facebook, Twitter, LinkedIn and Google+.
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