6 Ways to Save On Insurance With A Teenage Driver
According to the Insurance Information Institute, parents of teenage drivers can expect an increase of 50% to 100% on their insurance cost; for male young drivers, insurance rates my even triple.
But before you opt to plunder your teen's college fund, read these tips. There are ways to make insurance expenses more manageable without giving up important protection:
1. Delay the Licensing
The later your teen gets licensed, the bigger the savings. Even 18 year-olds show higher levels of maturity than their 16-year old peers, which translates into safer, more responsible driving habits. This is reflected in lower car insurance rates.
(But please don't get us wrong: Young drivers aged 15-24 still represent the highest risk group when it comes to car accidents. No matter at what age your child starts driving, we highly recommend practicing these tips to help your teen become a safe and responsible driver.)
2. Have Good Grades
A GPA of 3.0 or higher will reward you with an insurance discount of up to 30%. Many insurance carriers believe that a responsible student will also be a responsible driver, and reward hard-working kids (and their parents) with lower car insurance rates.
3. Take Advantage Of Distant-Student Discounts
If your young driver is attending college at least 75 miles from home and did not take a car, he or she qualifies for the distant student discount. However, be sure to keep your child listed on your policy for various reasons:
- If he or she wants to drive a family car on home visits
- To ensure continuous insurance coverage, which will be of benefit when your child gets his/her own insurance policy
- Your auto insurance's medical coverage will extend to protect your child if he/she is hit by a car while walking or riding a bike
4. Don't Buy Another Car
You can save significantly on your car insurance if you can avoid buying your teen his or her own vehicle. Sharing the family vehicle means the young driver has only limited access to a car, and therefore likely spends less time on the road. Not least, it saves to not have to add another vehicle to the family insurance plan.
5. If You Have To Buy Another Car, Choose the Right One
If you plan on providing your teen with his or her own vehicle upon receiving their driver's license, selecting the 'right' car may reward you with significant savings. While you don't want your child to drive around in an affordable (yet questionable) relic, a brand new car is often not the best choice either when it comes to insurance.
As you select a car, weigh reliability, fuel efficiency and safety features to find the ideal model for your young driver. Keep in mind that larger, heavier models often rank better in crash tests, but are also more difficult to maneuver. Opt for a newer model that has good crash-test ratings and is equipped with safety features such as curtain airbags and electronic stability control.
As you narrow down your options, feel free to give our office a call at 425-379-9200 to get an idea on insurance rates for each model, before you seal the deal.
6. Keep Your Driving Record Clean
Safe, responsible driving habits result in insurance savings whereas accidents or speeding tickets can quickly multiply your insurance rates. Encourage your child to practice safe driving habits - you may even consider a special reward for each incident-free month to reward responsible driving behavior.
Consider signing a "Parent-Teen Safe Driving Contract" in which you both pledge to avoid unsafe practices such as texting or talking while driving, eating behind the wheel, or drowsy driving.