Keeping Teen Insurance Rates Down

April 2, 2018

Top Ways to Lower Your Teen’s Car Insurance Rates

As a parent of a teenager, you face numerous challenges including finding affordable car insurance for your child. Teens are considered to be “higher-risk” drivers by auto insurance companies, so their rates are typically the highest of any age group. With that being said, there are many viable ways to keep your car insurance rates low with a teen driver.

teen girls with car insurance

Buy a safe car.

Be smart about purchasing a vehicle. We know that many teens are attracted to flashy sport cars, but a simpler car with high safety ratings can earn you lower rates of your premium. Opting for a sensible car model with a strong safety record and the latest safety equipment will help protect your teen driver and keep your auto premiums affordable.

Add your teen to your policy.

Your teen technically doesn’t need their own car insurance policy. In most cases, it is less expensive to add them to your policy rather than having two separate policies. This is especially true if your carrier allows you to assign your teen to the car least costly to insure. If this is the case, ensure that your teen drives that vehicle primarily.

Make use of good student discounts.

Many insurance companies offer good student discounts to students who have good grades. Generally, if your student maintains at least a 3.0 GPA, they will be eligible for these discounts. Depending on the company, these discounts can be even be eligible several years after your teen leaves high school.

Have your teen complete a Safe Driving Course.

Even if your school curriculum or state doesn’t require driver’s education, completing Driver’s Ed is an easy was to save money on car insurance. If your teen completes a safe-driving course, it will help make him or her a less risky driver and will qualify them for a safe driver discount. Some insurance companies also offer additional discounts if your teen takes an extra driver training course approved by the provider. Depending on your insurance company, you may be able to get up to a 15% discount on your policy.

Consider going without Comprehensive and Collision Coverage.

If your teen drives an older car, your potential payouts on collision and comprehensive insurance (which covers damages caused by natural disasters as well as repairs or replacement of parts in an accident that is your fault) will likely be lower than your deductibles. This means you will end up paying a higher premium than what you could get from your insurer in the case of an accident.

Shop and compare to find the best rates.

With so much competition between insurance carriers, you can easily take advantages of the many options available to you. As an independent agent,  we can help you research rates and coverage options from top “A-rated” companies to find the best policies suited for your unique needs. We can also help you re-evaluate your insurance policy and see if you can save by switching to another carrier.

Ensure your teen drives safely.

Your teen’s driving history record plays a huge rule in determining their auto insurance rates. This includes every traffic infraction, violation and accident on your teen’s record. Besides endangering lives, reckless driving can also increase current rates and even lead to license suspension or revocation. Keeping a clean driving record can help ensure lower insurance rates.

There are many additional ways to save money with driving discounts offered by our carriers. In addition, the DMV provides an online guide to buying car insurance for teens. Don’t hesitate to contact us with any questions you may have about coverage options or discounts. Just call us at 415-386-2283 to speak with an agent or send us a note at [email protected]!