On average, parents of teens pay or will pay nearly two-thirds or more of all costs associated with their child driving, ranging from auto insurance to gasoline. Further, 40 percent of parents will pay for all the costs associated with their child driving, while 33 percent will share these costs with their teen. Only one in six parents of teens say that their teen will pay for all the driving expenses.
To help offset the cost, here are a few tips to manage the cost of car insurance:
Good Student Discounts:
Many carriers offer discounts for young drivers who excel academically. These good student discounts reflect that responsibility in the classroom often leads to responsibility behind the wheel. Nationwide Insurance, for example, offers a 25 percent reduction in premium for drivers under age 21 who maintain a B average or better.
Education Pays Off:
Some insurers provide a discount to families that register their teen to participate in a driver certification program.
Check to see if your insurer provides a family plan that provides discounts earned by the adults in a household to their teen driver(s). Discounts extended to teens as a part of the family plan include multicar, multipolicy and financial responsibility. These reductions can help save up to 25 percent on auto insurance premiums.
Bundling policies—such as home, auto and life insurance products—with one company is a great way to save money on the overall cost of insurance.
Having a higher deductible on an auto policy, combined with programs such as Vanishing Deductible and Accident Forgiveness, can keep out-of-pocket expenses stable. For example, those who can afford to pay $500 when a claim occurs may want to select this as their deductible amount in order to lower insurance premiums.
Having your payments made electronically can save you up to $48 annually.