How To Save Money On Car Insurance Rates For Teenage and Student Drivers
More than just about anything else, parents dread the day their teenager obtains a driver’s license. Not only is driving tremendously hazardous – especially for teenagers – but the expense of car insurance rates for teenagers and students can be crippling. Many parents automatically add teenagers to their own auto insurance policy if they’re driving the parents’ car, and some parents erroneously believe they don’t even need to add the teenage driver at all. In either case, those decisions can be costly in the long run.
Family Car Insurance Policy
First and foremost, if you’re planning to allow your teen to drive your car, you need to check with your auto insurance company to find out if they need to be added to your auto policy. State laws vary on this issue, but if your teenager is at fault in an auto accident and is not covered by your auto policy, you may incur the entire expense for repairs and medical treatment of both parties. So do not allow your teenager behind the wheel of your car until you’ve settled this matter with your insurance company.
If you do add your teenager to your car insurance policy, you’ll probably see a large increase in your auto insurance premiums. That’s because teenagers are statistically much higher of a risk than adults, and so car insurance companies compensate for that risk by pumping up their premiums. For this reason, it’s a good idea to consider some different angles to save money on car insurance premiums for your teenage driver, as well as getting multiple car insurance quotes to get the lowest rates available.
Getting Cheaper Car Insurance
To start, you might find it cheaper to set up a new individual policy for your student instead of adding them to your policy. You may be able to customize that new policy, such as higher deductibles and limited coverage, and that may save you money.
Cheaper, Older Car For Teens and Students
Consider getting an older, less expensive car for your teenager to use. Your teenager doesn’t need the same quality and luxury that you do, and older and less expensive cars are far less of a liability to the insurance company. You can expect much lower auto insurance rates on an older car. Remember to keep in mind that some models of cars, such as some foreign cars, classic, and specialty cars, are much more expensive to repair (i.e. Mercedes, BMW, Lexus, Porsche, etc). Not only will this cost you more when you need to make repairs, it will also cost your car insurer more after an accident, which will likely affect your insurance premium costs.
Good Student and Other Discounts
If your teenager is a good student, that can go a long way to reducing your premium. Car insurers correlate good performance in school with good driving, whether it’s true or not. So if your teenager averages a B or better, ask about a good student discount.
In some cases, if you’re able to maintain restrictions on your teenager’s driving, your auto insurer will offer additional discounts. For example, restricting your teenager to daytime driving and refusing to allow passengers in their car will greatly reduce the insurer’s liability, so you should be able to get a better auto insurance quote. Furthermore, requiring your young driver to take a driver’s education course at the DMV or through another accepted program may provide additional discounts.
Discounts are especially important for male drivers versus female drivers, as female drivers typically receive much lower, affordable car insurance rates from carriers.
Car Insurance Quotes For Male and Female Teens and Students
If you have a teenage driver in your household, now is a good time to search around for competitive car insurance quotes. MyCarInsuranceRates.com makes it easy for you to get instant car insurance quotes from multiple auto insurance companies at once. We help parents and families find and get the best car insurance rates for their teen and student drivers.
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