Insuring Teen Drivers: 4 Ways To Save Money On Your Premiums

26 March 2019
 Categories: Insurance, Blog

It can be both exciting and terrifying when you have a child old enough to drive. There are a few perks, such as having someone else to run to the store or to provide rides to family members. However, an extra driver in the family also comes with a cost. Some insurance companies see teen drivers as high risk insurance coverage, and may add quite a bit of money to your premium every month. Here are a few ways to encourage your teen to drive well, all while saving you money.

Used Cars

It is simple math: The more expensive your car is, the more it will cost to replace. Your teen may not be thrilled about it, but a nice, used car is one way to save a lot of money on your monthly premium. There are many used cars that have plenty of miles left in them and can serve teen drivers proudly for many years. Instead of looking for the nicest car on the market, find one that will last a long time and could potentially take some damage with a new driver.

Liability Insurance

Another way to save a lot of money on your teen's car insurance is to only cover it with liability insurance. This will cover any damages that your teen invokes on other cars or property, without paying to replace the car itself (good thing it's a used car, right?). Liability insurance is not always an option, specifically if you have a loan on the car. Most banks have basic coverage amounts that the car must be covered, since they technically own it and are letting you borrow it.

Good Student Discounts

Sometimes it really does pay to get good grades. Depending on which insurance company you go with, you should ask if they offer good student discounts. Some companies lower your monthly premium for a semester, while others offer reimbursements for each A grade earned. This can be a great way to encourage your teen to focus on their studies, even with their new found freedom.

Safe Driving Discounts

While insurance may start out a bit pricey with a new teen driver, some insurance companies offer discounts for every year that your teen goes without an accident. This discount can greatly improve the cost of your insurance over the years. Help your teen to be careful in order to save money in the long run!

Contact an agency, like Allstar Insurance, for more help.