How to Lower Auto Insurance Costs for Teens
Simple Steps to Save Money on Car Insurance When Covering Teenagers
Apr 1, 2009
It is every parent’s fear that their newly licensed teen will get into an auto accident and cause costly personal injury and property damage. While most teen auto accidents aren’t that severe, they are fairly common and could skyrocket the cost of auto insurance. However, the parent can take numerous steps to prevent this from happening.
Auto Insurance for Teens: Talking to the Teenager About Driving Distractions
It is highly important in our day and age that parents inform teens of the serious consequences of driving while talking on their mobile phone and/or texting. Drinking and driving is an equally important issue; but recent studies have shown that driving while using a mobile phone can statistically be even more dangerous than driving under the influence of alcohol.
Parents should also talk to their teens about other distractions such as talking to friends who are sitting in the back seat, putting on makeup or shaving while driving, and adjusting the radio controls. These distractions may seem minor, but they could easily cause serious car damage or personal injury. Over time, auto insurance premiums for teenagers will decrease providing they maintain a clean driving record.
Auto Insurance for Teens: Choosing a Safe Car
When buying a car for the newly licensed teen, it is important for the car to come equipped with safety features that will provide discounts on the parent's auto insurance. Such safety features include front and side airbags, antilock brakes, anti-theft measures, and daytime running lights. Auto insurance generally provides discounts for one or several of these safety features.
Teens should avoid high-profile SUVs and trucks because they may become harder to control in an auto accident situation. Teenagers should also avoid sports cars and subcompact models as these may encourage speeding, thus leading to auto accidents where the small car could be more severely damaged.
Auto Insurance for Teens: Choosing an Auto Insurance Policy
When considering auto insurance for the teenager, it will save money if the parent covers the teen under the parent’s existing auto insurance policy rather than the teen purchasing his or her own auto insurance. As an added benefit, auto insurance typically provides a multi-car discount. If the quote from the auto insurance seems too high, the parent always has the option of shopping around.
Auto Insurance for Teens: Driver Safety Courses
Encourage the teenager to take driver safety courses. In certain states, drivers who complete a state-approved driver safety course may qualify for additional discounts. Many auto insurance companies also provide discounts for good grades.
Also encourage safe driving practices including full stops at stop signs, slowdown on yellow lights, and always maintaining the proper speed limit. Defensive driving training is important as well including watching for cars pulling out of parking spaces, pedestrians, and how to handle aggressive drivers.
Auto Insurance for Teens: The Bottom Line
Hitting the road with a driver’s license and a cool new car is a timeless ritual for teens. However, getting into an auto accident isn’t so cool, especially when parents see how much their auto insurance premiums increase. But when parents warn their teenagers about driving distractions, choose a safe car, and encourage the teen to get good grades and take driver safety courses, it can help lower the cost of auto insurance substantially.
See related articles, “Money-Saving Tips for Buying Auto Insurance,” “How to Choose an Auto Insurance Company,” and “22 Easy Ways to Save on Auto Insurance.”
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