As any parent of a teenager knows, car insurance for teens is expensive. Most parents have forgotten how astronomical the prices can be when compared to an adult driver with years of experience behind the wheel. Although the best cure for teenager car insurance costs is adulthood, there are ways to cut costs.
One way to reduce the cost of insurance for your teen is to be careful what kind of car you let little Suzy or Johnny drive. Did you get them a new 400-horsepower Corvette for their sweet sixteen? Bad move. Any kind of care with lots of horsepower or which is considered a sports car by the insurance company will drive your rate up more than almost anything else. Consider a boring, older sedan for your teen’s first car. Driving this type of car will help to reduce the temptation for your child to do donuts in the parking lot at school. Insurance companies consider older, larger cars safer and less likely to be stolen. You can also generally drop collision and comprehensive coverage on older cars also saving you money.
If your teen is an honor student or generally gets good grades, this can also help reduce your insurance rates. The insurance companies figure your child is too busy studying to be out driving on the weekends and possibly getting into an accident.
If your school offers driver’s education, take it. Some states require driver’s education, but even if yours does not, it’s a great way to save money on insurance. If your child’s high school does not offer driver’s education, consider a private driving instructor. This will also count in the eyes of the insurance company and help lower your bill.
Don’t make claims on small stuff. If your child is involved in a fender bender or backs into another car, pay for it out of your own pocket or better yet have your child pay for it so they learn a lesson. Nothing drives up insurance rates faster than making a lot of small claims.
Adding your child as a driver to your insurance policy is a natural thing to do, but it may be that the insurance company which is cheap for you may not be so great when you add a teen driver. Consider shopping around on the Internet for new coverage if your current insurer’s coverage seems too high. Websites like InsWeb and eAssurance can be a big help in this quest.