How Parents Can Save Money on Teen Auto Insurance
Getting a driver’s license is an exciting milestone for teens, but it also brings a new financial responsibility for parents: auto insurance. Because teen drivers are inexperienced, insurance companies typically charge higher premiums for them. However, there are several strategies that parents can use to reduce the cost of teen auto insurance.
At Get Drivers Ed, we understand how important it is for parents to keep costs manageable while ensuring their teen drivers are adequately covered. In this blog, we’ll explore practical tips on how parents can save money on teen auto insurance, and why taking a driver education course can make a big difference in reducing premiums.
1. Shop Around for the Best Rates
Comparing Insurance Providers
Not all auto insurance companies charge the same rates for teen drivers. One of the most effective ways to save money on teen auto insurance is to shop around and compare rates from multiple providers. Each insurer uses different criteria to determine premiums, so taking the time to compare offers can result in significant savings.
Ask About Teen-Specific Discounts
Some insurers offer discounts specifically for teen drivers, such as good student discounts, driving safety program discounts, or multi-policy discounts. Be sure to ask potential insurers if they offer any discounts for young drivers, as these can lower the overall premium.
Consider Usage-Based Insurance
Another option to explore is usage-based insurance. With usage-based insurance programs, your premiums are based on how much and how safely your teen drives. Many insurers offer apps or devices that track driving habits, and safer drivers can earn lower premiums. This can be a great way to save money if your teen only drives occasionally or has safe driving habits.
2. Encourage Your Teen to Take a Driver Education Course
The Benefits of Driver Education
One of the best ways to reduce teen auto insurance premiums is by enrolling your teen in a state-approved driver education course. At Get Drivers Ed, we offer an online driver education course that not only teaches teens essential driving skills but also can qualify them for insurance discounts.
Completing a driver education course shows insurance companies that your teen is serious about safe driving, which can result in lower premiums. In fact, many insurance providers offer significant discounts for young drivers who have successfully completed an approved driver education course.
Safe Driving Equals Lower Premiums
Insurance companies view safe driving as a major factor in determining premiums. When teens complete a driver education course, they learn defensive driving techniques, how to follow traffic laws, and how to avoid accidents. These skills make them safer drivers, which can reduce the risk of accidents and help lower their insurance rates over time.
By choosing Get Drivers Ed, parents can not only help their teen become a responsible driver but also potentially save on auto insurance premiums through available discounts.
3. Bundle Policies for Additional Discounts
Multi-Policy Discounts
If you already have insurance for your home, life, or another vehicle, check with your provider about bundling your teen's auto insurance policy with other policies you hold. Many insurance companies offer multi-policy discounts, which can lower the overall cost of coverage.
Bundling policies simplifies your insurance management by consolidating everything with one provider. It can also be a great way to negotiate for lower premiums on your teen's auto insurance.
Add Your Teen to Your Own Policy
Another way to save money on teen auto insurance is to add your teen to your existing auto insurance policy rather than purchasing a separate policy for them. In most cases, adding your teen to your policy is more cost-effective than having them insured under their own plan.
While this may cause your premiums to rise initially, it is generally cheaper than buying a standalone policy for your teen. Just be sure to update your coverage limits and ensure your policy provides adequate protection for all drivers in your household.
4. Choose the Right Car for Your Teen
The Type of Car Matters
The type of car your teen drives plays a significant role in determining their auto insurance rates. Cars with high safety ratings, fewer horsepower, and lower market values tend to have lower insurance premiums. Conversely, sports cars, luxury vehicles, or cars with poor safety ratings often come with higher premiums.
When choosing a car for your teen, consider safety features like anti-lock brakes, airbags, and crash-test ratings. Cars with these features are viewed as less risky to insure and can help lower your teen's premium.
Older Cars Can Be Cheaper to Insure
Another cost-saving strategy is to have your teen drive an older, less expensive car. Older cars tend to be cheaper to repair or replace, which means lower insurance costs. Just be sure that the vehicle is in good condition and equipped with up-to-date safety features.
At Get Drivers Ed, we recommend prioritizing safety and affordability when choosing a car for your teen. Not only will this help reduce insurance costs, but it will also ensure your teen is driving a vehicle that minimizes their risk on the road.
5. Increase the Deductible
How a Higher Deductible Can Save Money
Increasing the deductible on your auto insurance policy can significantly lower your monthly premiums. The deductible is the amount you pay out-of-pocket in the event of a claim, before insurance coverage kicks in. By opting for a higher deductible, you're assuming more financial responsibility in the event of an accident, which leads to lower premiums.
For families looking to save money on teen auto insurance, raising the deductible is an option worth considering. Just make sure you’re comfortable with the out-of-pocket expense if an accident occurs.
Balance Risk and Savings
While increasing the deductible can lower premiums, it's important to balance the potential savings with the risk. If your teen is a safe driver and the likelihood of making a claim is low, this strategy could lead to substantial savings. However, if you're concerned about your teen being involved in an accident, it might be worth keeping a lower deductible for peace of mind.
6. Monitor Your Teen's Driving Habits
Encourage Safe Driving
Encouraging your teen to practice safe driving habits is one of the best long-term strategies for keeping auto insurance costs down. The fewer tickets and accidents they have, the lower their insurance premiums will be.
Some insurance companies offer discounts for teens who maintain a clean driving record, so it’s important to emphasize the importance of following traffic laws and driving responsibly.
Consider a Telematics Program
Many insurers now offer telematics programs, which use an app or device to monitor driving habits, including speed, braking, and distance traveled. If your teen drives safely, they could qualify for reduced premiums through these programs. Telematics can also give parents peace of mind, knowing their teen is practicing safe driving.
Conclusion: Save Money and Keep Your Teen Safe with Get Drivers Ed
Auto insurance for teen drivers can be expensive, but by taking advantage of the strategies outlined in this blog, parents can significantly reduce their costs while still ensuring their teen is properly covered. From shopping around for the best rates to enrolling your teen in a driver education course like the one offered by Get Drivers Ed, there are plenty of ways to save on teen auto insurance.
At Get Drivers Ed, we offer a comprehensive online driver education course that helps teens become safe, responsible drivers. Completing our course can not only lead to discounts on auto insurance but also provide your teen with the skills they need to drive confidently.
Start saving on teen auto insurance today—enroll in our driver education course and take the first step toward lower premiums and safer driving habits for your teen!
