Insuring Your Teenage Driver
When it comes time to insure your teenage driver, you may be experiencing a lot of different emotions that range from fear of your child getting in an accident to fear of your auto insurance bill. A 50-100 percent increase in auto insurance premiums can occur once you add a teenager onto your policy. You can insure your teen in a cost effective way, as well as help them learn safe driving skills.
The majority of these crashes are caused by teenagers who are drunk while driving. Many teenagers are not so irresponsible that they would drink and drive, but it is far more common for them to be easily distracted by music, cell phones, text messaging and other intrusions that could cause an accident. Teenagers are more likely to speed and ride without seat belts. Teaching your teenager proper driving habits can keep them safer on the road and eventually lower your premium.
Since teenagers are more of a risk than any other age group, they will cost more to insure. But there are ways to cut these costs. Some auto insurance companies will give discounts to youths who have good grades or a GPA above a certain level, usually a 'B' or better. Some insurers are offering discounts to teens that use GPS tracking devices and video cameras in their vehicle.
Ask your auto insurer if you can get a discount if your teen takes a safe driving course. They will tell you which programs qualify for their discount. Giving your teen a souped up sport scar may make them happy, but your insurance premiums will soar. Getting them an older car with many safety features will be a little easier on your wallet when it comes to insurance costs. This is because older cars are generally cheaper to repair in case your young one gets into a fender bender.
As your teen gets older and demonstrates safe driving by not getting into accidents or getting tickets you'll have more room to negotiate a lower premium. If your teen goes off to college and will not be driving a car, you may be eligible for even lower payments or to drop your child completely from your auto insurance policy if you wish. Be sure to compare whether it is cheaper for your teen to get his or her own separate policy, or if it's better to add your child on to yours. These suggestions can help minimize the impact of a new driver in the house.
Auto insurance companies have different formulas for determining rates on teenage drivers. Comparing rates from different companies may save you hundreds of dollars on the same exact policy. The InsuranceBureau online form can get you in touch with insurers that can give you quotes. The form takes a few minutes to complete, but you'll get multiple quotes and possibly save money for very little effort. And with a teenage driver on your policy, saving money is always a good thing.
Sources
- Teen Drivers. (2008) Retrieved April 16, 2008, from http://www.iii.org/media/hottopics/insurance/teendrivers/
- How do I insure my teenage driver? Retrieved April 16, 2008, from http://www.iii.org/individuals/auto/b/teengage/
- Insuring your teen driver without breaking the bank, Karen M. Kroll. (2002). Retrieved April 16, 2008, from http://www.bankrate.com/brm/news/insur/20020417a.asp
- Teen Insurance Woes, Ann Job. Retrieved April 16, 2008, from http://editorial.autos.msn.com/article.aspx?cp-documentid=434671
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