Parent’s Dream: How to Get Low Cost Teen Car Insurance


Each year, it is becoming harder and harder for parents to provide even the basic needs of the family. And what about those times when your kid starts to ask your permission to allow him to drive the family car? Do you feel excited or frustrated, knowing that eventually, your insurance premiums will surge up like never before?

You might be thinking right now that it’s going to be the end of your low cost insurance premiums days. When teenage drivers get their insurance license, it’s going to be one hell of a rough transition.

However, don’t fret out just yet, because there are certain things that you can do to salvage and minimize the impact of the arrival of the newest driver in the family.

Encourage Your Kid to Do Well In School

This is probably one of the well-known solutions to keep the premium cost at bay. Insurance providers are known to reward students with their “good student discount.” All is needed is to send your kid’s report card to the insurer to qualify for possible price cuts. This is a win-win situation; your premium cost will decrease and insurance companies won’t have to facilitate claims after claims from the inexperienced driver. Studies indicate the teen drivers who are performing well in school are generally safe drivers, hence, entitled to receive lower rates. The money you save here can then be used to set up a trust fund for him. Again, this is yet another surefire way to encourage your kid to study even harder.

Consider Increasing Your Deductible

This tip works whether or not you have a teen driver in your home. Deductible is the amount you are willing to pay in case of an accident. Since you are taking a portion of the risks yourself, it is only appropriate for the insurance companies to grant you cheaper premiums. Increasing your deductible will definitely make a huge impact especially if you are aiming to acquire cheap insurance coverage.

For example, increasing your existing $250 deductible to $1000 guarantees around 30 to 40% off your current premiums. This is what most parents are doing but keep in mind that it comes with a catch. For example, minor collisions or damages within the deductible range will have to be settled on your own. But then, it’s also advisable you do it this way particularly those involving just minor collisions to prevent your insurance premiums from leaping off.

Don’t Allow Your Kid to Drive Expensive Vehicles

A teen driver carrying expensive car will usually get higher premiums. Again, be vigilant when the insurer insists to assign your teen driver to the most expensive car in your home. Even if you know that your kid won’t even dare to touch your Ferrari, some insurers may automatically assign your kid to that car. Indeed, it’s a sneaky way to get money out of you; speak to your insurance agent with your intention of reassigning your kid to a different vehicle. Alternatively, you could buy another vehicle for your kid and at the same time purchase separate policy for him.

Driver’s Education Program

It is almost mandatory for anyone looking for cheaper premiums to enroll into a driver’s education program. If he has not completed any driving courses before, encourage him to sign up even with supplemental classes. Most driving programs will take about 50 to 60 hours of instruction, which then equates to about 25% insurance savings.