How to Reduce Auto Insurance Costs for Teen Drivers (and Their Parents)

What if you could take a few easy steps to save hundreds of dollars a year?
If you have a teen driver, then you are familiar with the steep cost of their car insurance. Carriers know just how risky young drivers can be, which is why they price car insurance for teens so high. Knowing that, however, does not make it any less frustrating to get a huge premium bill in the mail each month.
Fortunately, it is easy to save once you know a bit more about how to lower insurance rates for young drivers. Ready to learn a few tips you can start using today to finally see that premium go down? Keep reading to learn everything you need to know about how to save on teen auto insurance.
The High Cost of Teen Auto Insurance Explained
Whether you get them their own coverage or add the teen to your car insurance policy, you can count on that monthly premium being more than you really want to pay. This leaves many frustrated parents asking themselves why the cost is so much. However, once you see insuring teens the way your carrier does, it is easier to see why the premium is so depressingly high.
In short, these young people are riskier drivers across the board. They are likelier to drive distracted, not wear a seatbelt, and speed. They are also likelier to drink more and — with or without the influence of alcohol — likelier to get into accidents on nights and weekends.
Remember, carriers set prices as a reflection of how likely someone is to get into an accident and otherwise file a claim. Safe, middle-aged drivers, then, will always pay less for coverage than teenagers who are fresh behind the wheel. Their rates will go down naturally over time, but with the right teen driver insurance tips, you can reduce the cost much more quickly.
When to Add Your Teen to Your Insurance Policy
Some carriers require you to add a teen to your car insurance policy as soon as they have their permit. Others do not require it until your teenager has their full driver’s license. Contact your carrier to verify their requirements.
Remember, this is as good a time as any to begin shopping around and getting quotes from several different insurers. If you are wondering how to save when adding your teen to your policy, it all starts with finding someone who can offer a better price out of the gate. Whether or not they require coverage at the permit stage or license stage, getting a more affordable premium for your child can help save plenty of money over time.
Proven Strategies to Reduce Premiums
We have established that car insurance for teens is, by default, way too expensive. However, there are a few steps you can take to lower your teen’s rate, including buying them an affordable car with a high safety rating. In some cases, selling a sportier vehicle and buying something safer for your child can instantly lower their rate.
You should also encourage your child to take a driving safety course. Not only will young drivers benefit from the education, but carriers will typically lower their rates after they receive this special training. If you are fairly confident your child is a safe driver (remember to take the necessary steps to keep your teen driver safe), you could also install a telematics device in their vehicle that reports their driving habits to the carrier, who will be happy to reward safe habits.
As for the actual policy, consider getting an umbrella policy or bundling multiple policies for further savings. Consider adding an accident forgiveness rider because an accident is one of the chief things that raises your insurance prices.
Discounts and Deals: Maximizing Insurance Savings
Still wondering how to lower insurance rates for young drivers? In some cases, all you have to do is ask your carrier about special discounts for which your child may qualify. This includes the good student discount, which rewards teens for staying on top of their grades.
Your child may also qualify for a special driving discount, and other savings may be available based on things like membership in certain fraternities, sororities, or other specialty groups.
Thanks to offers like the good student discount, it is possible to seriously save after you add a new driver to your family car insurance plan.
Adjusting Coverage and Policies for Teens
There are a few tweaks you can make to your existing policy to help you save on teen auto insurance. For example, you can increase your deductible, which lowers your premium but increases how much you would have to pay after an accident before insurance pays. It can be risky, but if your child is a relatively safe driver, this policy change can lead to major monthly savings.
Similarly, paying for their annual premium upfront will save you money compared to paying month to month. Bundling is also a great way to save after you add a new driver to the family car insurance plan. By bundling multiple policies through the same carrier, you can save on each and every one.
The Pros and Cons of Separate or Family Plans for Teen Drivers
Usually, parents are better off just adding a teen to their own existing policy. If you are searching for how to save, adding your teen to your policy opens the door to many aforementioned opportunities, including bundles and discounts (a parent having a good credit score can impact insurance rates).
The only times to really consider getting your kid a separate policy are as follows: they are independent (moved out and fully living on their own), they have a really old car (allowing for cheaper comprehensive coverage), or they are very risky (a separate policy means you will not share their financial liability for accidents).
Get a Quote for Your Whole Family of Drivers
Now you know more about how to save on teen auto insurance. This includes why premiums are so high in the first place and which policy changes and discounts can help you save. However, do you know which carrier is standing by to help you save even more?
Here at InsureOne, we offer the best protection and most affordable coverage to drivers of all ages. Ready to experience the perfect combination of lower premiums and luxury service? Then it is time to come get a quote online.
You can also pick up the phone and give us a quick call at 800-836-2240. And remember, we are always happy to see you at an InsureOne office near you.