Teen auto insurance is known to be more costly than regular auto insurance. An inexperienced driver is more likely to have accidents: that is common knowledge. Statistics from the National Highway Traffic Safety Administration shows that drivers under 25 years old are four times more likely to die in an accident compared to older drivers.
Parents may see a hefty increase in their insurance premiums once their teens start driving, but not having auto insurance is not an option for most. The good news is that there are ways to save on teen auto insurance. Here is how.
- Have your teen enroll in driver’s education courses that are approved by your preferred insurance companies. Driver’s education courses can save you up to 15 percent of your premiums!
- Comparison shop. Shop around for teen auto insurance by calling up a lot of insurance companies and getting quotes from them. This way, you can get the best deal on both coverage and rates.
- Consider your own situation. If you have a clean driving record, or if you have never filed for a claim before, you might get lower premiums for your teen's policy.
- Think about buying a less expensive car for your teens. Companies that offer teen auto insurance often charge a higher premium for flashier cars because the chances for these to be stolen are high.
- Choose an insurer that allows you to assign cars to your teens. As an extension, if you have a flashy car and your teen has a cheaper one, you could save on your teen insurance premiums if you assign the cheaper car to your teen. Most insurers will only assume that all drivers in the house will be able to drive all the cars in the house, and they will calculate the premiums based on the most expensive car you have in your household. By assigning your teen the least expensive car, the insurance company will calculate your insurance premiums based on that car, effectively driving it down.
- Get higher deductible. The deductible is the amount you have to pay before the insurance company takes over. Getting a higher deductible can save you a lot from your premiums.
- Ask for a discount. The easiest and the fastest way to save on teen auto insurance, is to simply ask for a discount. Most insurers know that you can get your insurance coverage from the company next door, so most are willing to cut their prices in the form of a discount you may not be aware that you are eligible for.