Type of Car
The type of vehicle your teenager will be driving makes a big impact on the insurance premium. Insurance companies generally don’t like to see teenagers in expensive, fast sports cars and the average insurance rate increase for teenage drivers is much higher for these types of vehicles than the increase for an older, less expensive vehicle.
This is because the older cars are usually heavier and harder to drive, making them a safer vehicle. Insurance companies take into account the value of the car when figuring insurance rates, so an older, more economical car will help reduce this cost.
Driving History
Many insurance companies give large discounts for those with clean driving records. Making sure your teen drives safely will help reduce his or her insurance premium. Not putting in claims for minor damages such as scratches and fender benders will also help keep premiums low.
The more claims a driver makes the more likely it is that his or her rates will go up because he or she is causing the insurance company money.
Teen Driving School
Enrolling your teen in a teen driving school or driver’s ed course can help rates stay low as well. Graduating from one of these programs proves to the company that your teen has the knowledge and skill to be a good driver; therefore they are less of a potential threat.
Teenage drivers who are students and get good grades can also qualify for car insurance discounts. Most companies offer discounts for students who maintain a “B” grade point average or better. Some companies will give a discount of up to 25%!
Policy Preparation
Initially, adding a teenage driver to a parent’s existing policy can be costly, but as time goes on and the teenager proves to be a responsible driver these premiums will go down. If the teenager is listed on the policy as an “occasional” driver lower premiums can result because they are not on the road very much.
On the other hand, if the vehicle they are driving is an older, safer vehicle it may be more economical to place them on their own individual policy. This is where shopping for the best plan comes into play; select and compare many different companies and policies before deciding on one.
Adding a new teenage driver to a household is an exciting and stressful time. Keeping these tips in mind when you go to find auto insurance for your new driver will help you save money
