Monday, March 5, 2018

Tips to Cut Teen Insurance Costs



It is a well known fact that teen drivers or drivers aged between 16 and 19 years are more likely to be involved in car accidents that all other age groups of drivers. Furthermore, the CDC highlights that teens are the most expensive age group of drivers to insure and this is mainly due to their impetuous nature and inexperience in driving.

Forbes recently noted including a 16 year old female driver in your family insurance policy leads to a 67% increase in your total bill. On the other hand, including a 16 year old male driver in your policy leads to a 92% increase in your bill. However, before you rush to make any decisions about whether or not your teenage kids should get driver's licenses, it may be worthwhile to find out some few tips on how you can save money on teen car insurance.

1. Get Your Teen To Do A Driver's Ed Course

Depending on your location, your home state may demand that anyone below the age of 18 do an Ed Course in order to get a license. However, if this is not a mandatory requirement in your state, it is still important to get your teen to take a driving safety course as most insurance companies offer discounts for all drivers who have done this course.

2. Get Your Teen To Do Their Homework

So, there is an relationship between your kid's grades and how much you pay for their car insurance. Insurance providers view kids who get good grades in school as less likely to be reckless behind the wheel. This correlation means that kids who have a good GPA (3.0 and above) are qualified for something called a 'good student discount' that significantly reduces your insurance bill.

3. Talking of Family Policies...

It is important that you add your teenage son or daughter to your current or existing car insurance policy. The cost of getting an individual policy for him or her is most likely to be outrages when compared to adding them to your existing auto insurance policy. On top of this, the fact that you are adding another vehicle to your existing policy means you can qualify for additional discounts that may contribute to an overall affordable insurance bill.

4. Select A Higher Deductible For Your Policy

This can prove to be beneficial for anyone who is looking to lower their monthly auto insurance payments but it can also prove to be handy for you if you are adding a teenage driver to your policy. You should make sure that you can afford the deductible amount you select in case the worst happens and you need to claim your policy.  Hopefully, things never get to that point!

5. Choose The Right Car For Your Teen

First and foremost, it is not advisable that you get your teen a sports car as it is definitely more expensive to insure. With that in mind, if you are looking for a car for your teen who has just got their driver's license, it is better to opt for a modest car that will not raise any red flags when it comes to insuring it. On top of this, you should also ensure that your teen's car of choice includes all the relevant safety features such as air bags and ABS that help to lower the cost of insurance further down.

6. Shop Around For The Cheapest Insurance Rates Possible

At the end of the day, your teen will have to pay more for their insurance than you the adult. However, this does not mean that all insurance providers will charge you the same rate. It is always important to shop around and get different quotes from different companies instead of settling on one policy that may be extremely expensive. You can also renewfor cheap car insurance by doing this.

Furthermore, you should also ensure your own insurance bill is low so that your combined bill is more affordable. In certain states, your credit rating may influence your auto insurance policy so it does not hurt to build and maintain a good credit score. You can monitor your credit score every 3 months on credit.com.

All in all, there is nothing better that will help you save on teen insurance than teaching them the importance of safe and sober driving. It does not matter if you get a really good deal from an insurance provider on your teen insurance policy, the cost of the policy can easily blow up if the kid decides to be reckless behind the wheel. Be firm when teaching them how to drive safe and also drive safe yourself. If you want your kid to drive safe, you must start by setting a good example.

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