It’s that exciting time in your teen’s life- they have just gotten their driver’s license! Before you get decide on the vehicle, it is important to consider insurance first. Teens, especially male teens, can be expected to pay higher insurance premiums due to the high-risk nature. Fortunately, I can share some tips and tricks to help get cheaper insurance for your teen driver. The chart below shows the average yearly insurance rate teens pay in California as an example.
Type of Vehicle
The type of vehicle your teen is driving will play a huge factor in the insurance premium. Let’s take a look below:
Option A will no doubt cost you or your teen an outrageous amount to insure, while Option B will be more economical. A good tip to remember is, the more power under the hood, the more expensive insurance will be. Whether buying new or used, consider the type of vehicle your teen will be driving and how it will reflect on insurance premiums.
To learn more about insurance estimates for different types of vehicles, visit Finder’s website.
Defensive Driving and Driver’s Training Courses
Prior to your teen getting insurance, consider having them enrolled into a defensive driving course or a driver’s training course. These courses will not only help reduce insurance premiums but will help your teen drive more confidently and safely. Teens can save up to 25% on insurance by successfully completing drivers training! (Sigsworth, 2013). Speak to your insurance company to find out which course they require for a discount on premiums for your teen.
Increase the Deductible
Increasing the deductible on your teen’s insurance and significantly lower the monthly premium. The reason behind this is that teens are more likely to get into minor accidents, such as fender-benders and by increasing the deductible, the repairs are coming out of your or your teen’s pocket instead of the insurance company’s.
Inquire About Discounts for Cheaper Insurance
Many insurance companies offer discounts for multiple reasons. Some of the discounts include:
- Student discounts
- Pay-per-mile (for those who do not drive a lot)
- Safety features on your vehicle
Fortunately, there are numerous insurance companies in the country, therefore it is important to remember to look around. Many insurance companies provide a quick and easy way to get an insurance quote online. Take your time, do your research and you will find a premium that works for you and your teen. Below are the links for the online quoting tool for the most popular insurance companies in the USA:
Adams, J. (2018, April 25). [Photo]. Retrieved from https://unsplash.com/photos/HNbpdFSLOwk/info
Insurance.com. (2020). Car insurance for teens. Retrieved from https://www.insurance.com/auto-insurance/life-events/car-insurance-for-young-adults.aspx
Sigsworth, T. (2013, December 6). The Six Best Ways to Lower Your Teen’s Auto Insurance Premiums. [Blog]. Retrieved from https://www.lowestrates.ca/blog/six-best-ways-lower-your-teens-auto-insurance-premiums
Street, J. (2020, April 22). [Photo]. Retrieved from https://unsplash.com/photos/jYVnwIc1H-c