Saving Money on Insurance for Your Teenage Driver
Updated March 26, 2024 | Published September 5, 2023
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Categories:
- Auto Insurance
- For Parents
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
Enrolling your child in a driving school is a great way to ensure that they learn everything they need before they hit the open road. Driving schools will also teach rules and laws specific to your state as well. Many states now require your child to attend driving school before they take their license test, especially if they are under the age of 18 or 21. An added benefit of attending driving school is that you’ll often qualify for a discount on your insurance policy. This could be anywhere from 5% to 20%.
Safe Driving Discounts
Many insurance companies offer rewards and discounts for safe driving. Some insurance companies offer this discount based off of your driving record only, while some go as far as to have you install an app which monitors your driving behaviors.
Good Student Discount
Doing well in the classroom can give you discounts on your insurance policy as well. Data shows that students who are more responsible in the classroom are less of a risk on the road. Good student discounts are offered to students ages 16 to 24 enrolled in full time high school or college.
Tips for choosing your policy
Don’t Base Your Decision on Price Alone
We recognize that it’s important to save money on insurance, for things like your child’s college education. However, teenagers are seen as a bigger risk to get into an accident, and therefore should have greater coverages to ensure they’re covered no matter what. Remember to choose the insurance provider that will give you peace of mind with offering coverages that fully protect your assets and your family. An insurance company that has great customer service helps as well, as they can get you discounts and help walk you through your policy.
One last tip: Don’t be tempted by the new car smell
As tempting as it may be to reward your child with a new car after completing driving school, high school, or college, it ends up becoming a money trap for many. Teenagers are more prone to get into accidents, as well as have general damage to their car, such as scratches. Your insurance premium could go through the roof if you make a brand new car the primary vehicle for your teen driver on your insurance policy. It is a wider decision to buy a used car, and save the money you would have otherwise used for a new car as a down payment on a new car when your teen is ready to make the upgrade a few years down the line. The insurance will also be a bit lower too, so 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.