Top 5 Ways to Cut Insurance Costs for Teen Drivers

Top 5 Ways to Cut Insurance Costs for Teen Drivers

Red Mini

Red Mini (Photo credit: Aaron Dieppa)

One of the greatest moments of freedom in a young person’s life is being handed the keys to their first car. For many parents this can be the worst moment of their life. But eventually you have to let them grow up and make smart decisions for themselves. Hopefully the driving lessons you’ve imparted to them will be on their minds as they traverse the many roads of their lives. Unfortunately, worrying if they are a good driver is just half the anxiety. Many car insurance companies charge an arm and a leg for teen drivers. Here are the top 5 ways to cut insurance costs for teen drivers.

  1. One surprising way for teen drivers to get affordable insurance is to get good grades. Many independent insurance companies offer discounts to students in high school and college that maintain at least a B average; college students should be taking at least 12 credits to qualify. After calculating some of the savings, offer them a better car if they keep their grades up. It’s a win, win situation.
  2. Chances are, most teen drivers will be starting off driving an older model car. Most of these cars will have a value much less than the insurers deductible, which would in turn make the car a total loss if they got into a collision. You can really save money in the long run if you drop collision and comprehensive coverage.
  3. You can also ask your car insurance company if they have any other special discount packages. Many insurance companies offer discounts if the teen driver takes a special course, watches a certain DVD, or takes a specific test. These insurance companies want to make sure that the young drivers they are protecting know exactly what they are doing on the road.
  4. Another way to save money on car insurance for teen drivers is to give them a safe car. The safer the car, the lower the insurance premiums. You don’t want to give them the keys to a racecar, because insurance costs might go through the roof. Find them a nice, moderately priced or used sedan with a tried and true safety record.
  5. Lastly, if your teen driver goes to school or college over 100 miles away and doesn’t take a car, you can get hugely discounted weekend or vacation rates from your car insurance company. Just call your insurance company and ask what they’re special rates are – usually they aren’t listed.

The most important thing, though, is to protect our young drivers to the best of our ability. Teaching them the rules of the road is important, but you also have to teach them to use the best judgment- like never drink and drive, and always obey the speed limit. After that, finding the cheapest auto insurance is all about finding ways to protect our teen drivers, without breaking the bank. They might moan and whine at first about not receiving the car of their dreams, but every young driver has to start off somewhere.

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