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 may 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. 18 year-olds - while still young - show higher maturity levels than their 16-year old peers, which translates into safer, more responsible driving habits. This is reflected in lower car insurance rates.
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 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. Even though you may be tempted to take your student off your car insurance policy for the time he or she's away, we strongly advise against doing so. It's important 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 an advantage once 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 An Additional 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 spends less time on the road. Not least, it saves to not to 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 sports car may not be the best choice either when it comes to insurance savings.
As you select a car, weigh reliability, fuel efficiency and safety features to find the ideal model for your young driver. Keep on 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 or distracting behaviors, such a texting or talking while driving, eating behind the wheel, speeding or drowsy driving.