It’s a moment every teenager waits for: getting their driver’s license. As a parent, you may have mixed feelings about letting your child behind the wheel of a car, taking extra care to ensure a solid driver’s education and a safe vehicle to drive. You want to equip your teen driver with the best – and that includes the quality of your insurance coverage. Even if you have been driving for years, adding a teenager to your policy can change everything. After all, teenagers get into car accidents at a rate of 3 to 1 compared to adults, so the odds are high that you may need to file a claim. Continue reading to learn how you can find the best car insurance for your newly licensed driver.
Look for Insurance Companies that Offer Good Student Discounts
Be sure to report your teen’s grades to your insurance agent – especially if your child is an honor roll student. According to Huffington Post, teen drivers with A’s and B’s, as well as college students with high grade point averages (3.0 or higher), can qualify for significant discounts with some insurance companies. Keep in mind that not all insurers are favorable toward young drivers and may not offer good student discounts at all. Some may offer steeper discounts than others, which could save you as much as 20 percent or more on premiums. Considering the average teenager can cost $2000 per year to insure, a savings of 20 percent could put as much as $400 back in your pocket.
Look for Insurers Who Reward Safe Driving
A few bad apples can spoil the whole bunch; that is, unless, your teenager’s safe driving habits are tracked by the insurance company. Some insurers are using modern tracking technology to analyze driver habits over a long period of time. Those who rapidly accelerate and decelerate or frequently slam on the brakes may be classified as riskier drivers. Conversely, those who practice responsible driving may be rewarded with lower rates on coverage.
Tips for Savings and Safety
If safety and savings are both of utmost importance, consider the following tips: Wait a year before letting your teen drive. Your teenager becomes less expensive to insure with every new birthday. According to the Huffington Post, your teenager’s rates could easily be double your own; and that is without any record of accidents or traffic violations. Each year you wait before licensing your teen could mean a drop of up to 10-15% or more in monthly premiums.
You may also be able to save on premiums by raising the deductible on your comprehensive and collision coverage. Another thought is to buy an older car for your teen. Since a new car costs much more to repair or replace than a used one, buying a car with a little mileage on it could save you cash in more than one way. Keep in mind that the type and horsepower of vehicle your teenager drives could also affect your premiums.
Finally, keep your insurance agent in the loop. Life changes rapidly, and you never know what changes could qualify you for savings on coverage. For example, if your teen leaves the car at home while away at summer camp or while off at college, you could qualify for a distant driver discount.
If you have questions about insuring a new driver in you household, give Reis Insurance Agency of River Falls, Wisconsin a call – we can help.