Saving Money on Insurance for Your Teen Driver
September 5, 2023
According to the National Highway Traffic Safety Administration, teenagers have the highest car accident rates of all age groups. Since teenagers are a greater liability for insurance companies, this means adding a teenager to your insurance policy will cost more than the cost for an adult. With that being said, there are some ways to curb the financial hit to your insurance policy, through insurance policy discounts. There are several discounts that could apply when looking at saving money on insurance for your teen driver.
Teen driver discounts
Your teen attended a driving school before their license test
Across the country, driving schools have opened to teach teenagers good driving and safety habits. They give young drivers a comprehensive overview of the essential rules of the road, best practices for difficult situations on the road, tactics for driving in bad weather or heavy traffic, and alcohol awareness. Many states now require that teenagers attend driving school before taking their license test, especially under the age of 18 or 21.
One of the incentives for attending a driving school before taking your license test is an insurance discount on your auto policy. Typically, you can save anywhere between 5% and 20% on your auto insurance rate for completing drivers’ education. The most common discount is 10%.
Safe Driving Discounts
Many car insurance companies offer discounts based on remaining accident free. Some offer rewards for using a safe driving vehicle or mobile phone app. These programs encourage better driving habits and can drastically reduce your premium. The average safe driver discount can save you up to 20% or 25% on your auto insurance policy, but some providers offer a steeper discount.
Good Student Discount
Believe it or not, good grades can help you with more than just college admissions. Many companies offer good student discounts, because data shows that students who are more responsible in the classroom tend to be more responsible drivers. Good student discounts are typically offered to students between the ages of 16 and 24 enrolled in a full-time high school or college. The average good student discount is 14%.
Tips for choosing your policy
Don’t Base Your Decision on Price Alone
As important as it is to save money for things like your child’s college tuition or your retirement, don’t forget that what you pay for is what you’ll receive. After considering discounts on insurance for your teen driver, remember to choose the insurance provider that you feel will keep your family safe, and will be there for you when times get tough. Choosing an insurance company with great customer service doesn’t hurt, either. In the end, having peace of mind that you and your children are safe and protected is more important than saving that extra $50 on your next auto policy.
One last tip: Don’t be tempted by the new car smell
As rewarding as it is to see your child go through driving school and get their license, don’t fall into the trap of buying them a brand-new car. Inevitably, they will scratch and ding the car. Your premium could go through the roof if you make a brand new car the primary vehicle on the insurance for your teen driver. A better option would be to buy a nice used car with low miles on it that will last your child through the end of high school and ideally throughout college. If you really want to help your child get a nice, brand-new car, the best thing you can do for them is take the money that you save by purchasing a used car and hold onto it to use as a down payment for a new car when the time is right. The insurance will be much lower (or they’ll be on their own insurance policy at that point), and your wallet will be thanking you.
Consider Working with an Independent Insurance Agent
You can save a bit of money working with an independent insurance agent. They work with a handful of providers and can find the best plan for you. Consider choosing WebFirst Insurance, LLC, to fulfill your insurance needs. Our experienced agents are rated highly for customer service, and we’ll make sure to answer any questions you may have in a timely manner.