While most parents joyfully watch their children mature, they also dread the day that their teens start driving. Teen drivers cause the majority of accidents on roadways, which means that insurance companies charge more to cover them. On average, expect to see between a 79 and 100 percent increase in insurance premiums when you add on a teen. While parents should expect premium increases when adding teens to their policy, there are ways to reduce the cost.
Start with the Vehicle
While your teen may have their dream car picked out, it’s better for mom and dad to do the choosing when it comes to car insurance rates. Teens typically want flashy sport cars, but these are far more expensive to insure than their less cool sedan counterparts. Before purchasing a vehicle, ask your insurance agent to run the costs for each.
Look For Discounts
Talk with your insurance agent about obtaining every discount that you qualify for. For example, if your student maintains at least a B average in school, they often qualify for a good student discount. Additional discounts are given if your teen passes a qualified driver’s education course, so check with your agent to see what kinds of discounts your teen can qualify for.
Get Creative
In most cases, it’s cheaper to add a teen driver to the parent’s existing insurance policy. However, in some cases, you come out cheaper if they purchase their own policy all together. This is particularly true if the parent’s rates are high due to traffic violations. The only way to know for sure is to run the numbers with your insurance agent.
Reward Good Driving Behavior
Traffic violations and tickets are a sure way to increase insurance costs. Emphasize the importance of maintaining a clean driving record by rewarding teens for no violations. Some insurance companies will even reward safe driving by installing an electronic monitor in the vehicle. After a set period of time, they will reduce the teen’s rates as long as they have proven themselves to drive safely.
For more ways to reduce the cost of insuring your teen driver, contact Spickelmier Insurance today. We can work with you to examine all available discounts and options to reduce the cost of fully insuring your family and your vehicles.