The moment your teenager obtains his or her driver's license you should let your auto insurer know. Almost all insurers will oblige you to add all licensed members of your family household to your car insurance policy. At that moment, you can expect your premiums to suffer a steep rise. The only way to avoid paying for your teenage driver is contacting your insurer and excluding your teenage driver from your policy - this is known as an exclusion. It means that you agree that your teenage driver is not covered, and no claims caused by that driver is covered either. Although adding a teenage driver to your policy can be costly, there are ways to control how much the costs will rise. I'll give you some of the best tips to keep your car insurance rates as low as possible.
Another insurance possibility is getting your teen to insure his or her own car. The problem is that generally this is much more expensive than adding your teenager to an existing policy. Also, depending on the state, in many cases minors cannot own property or sign contracts without the parents' authorization and signature. This means that the moment your teenager gets a driver's license, you, as a parent are responsible.
The reason that car insurance for teenagers is so expensive is because teens have a significantly higher rate of accidents than adults over the age of 25. According to the National Center for Health Statistics, motor vehicle accidents are the main cause of death among people from the age of 15 to 20. And drivers pertaining to this age range accounted for 13% of police-reported crashes in 2011 (latest known data). This is why adding a teenage driver to your auto insurance policy can raise your premiums from 50% to 100%!
However, many insurance companies offer special discounts for teenagers and students that meet certain standards. Here are some of the things to keep in mind to become eligible for a discount from most auto insurers:
Encourage your teenager to get good grades because it can help you save a lot of money on your premiums! This type of discount is called 'The Good Student Discount' and it is generally given to students with a grade average of B or higher.
Safe driving programs
Many insurers offer safe driving programs that teach road safety. Advising your teenager to take a driver's education course is a good idea, because not only will it teach him to become a better and safer driver, but it will also cut the costs of your car insurance.
Clean driving record
Just like with any auto insurance policy for adults, having a clean driving record helps keep the premiums lower. Some car insurance companies offer special rates for teenagers who complete the insurance term accident-free.
If your teenager is attending a school/college that is at least 100 miles away from your home, it is likely that you can score a hefty discount. The reason that this discount exists is because teenagers that are far from home are less likely to use your vehicle on a regular basis and get involved in an accident. Contact your insurance company to check if they provide discounts for away-from-home teen drivers. It is important to note that after a student reaches a certain age - typically from 23 to 25 - this discount is no longer applicable.
Get your teen driver a safe car
Most teenagers will probably value looks over safety, and want a fast, sparkling-new vehicle. However, choosing a vehicle chock-full of safety features instead of just buying a flashy car is generally a wiser choice. A safe vehicle will most likely lower your premiums as well as help you feel more at ease when your teenage driver is on the road. Cars that offer better protection in case of a crash are generally cheaper to insure than those with few safety features. The Insurance Institute for Highway Safety is a good place to check which vehicles cost more or less to insure, and which vehicles are safer according to accident statistics.
Use modern technology
Many insurance companies offer different types of monitoring systems that can be placed in your teenager's car. These monitoring devices detect safe driving behavior, and insurers that provide these systems generally offer substantial discounts to users that adhere to specific driving behavior. Ask your insurer what technologies are available for your teenage driver before adding him or her to your insurance policy.
Finally, one of the most important things to do whenever looking for insurance is shopping around! Make sure to check different insurance companies and policies to find the one that best suits your needs and your budget. It's a tremendous job to scan the web and dig through hundreds of insurance companies to compare insurance rates.
But don't worry, we've thought of that - so we've done the work for you!
At GET.com, you can find the best car insurance in just a click by simply choosing your state! Compare the lowest insurance rates here or just select your state in the box below to find the best insurance rates in your area.