4 Ways to Keep Your Teen Driver's Insurance Costs Low
Published Tuesday, August 1, 2017
What a nerve-wracking time in parenthood! Not to mention, expensive! Follow these tips to save yourself some cash when it’s time to add Junior to your insurance policy.
- Car sharing. The least expensive route is for the teen to be a part-time driver. This means that s/he shares the car with another driver (parent perhaps). Because the teen doesn’t have access to the car at all times, the insurance rate is less expensive.
- Modest car. If #1 above is not possible, the next best thing is for the teen to drive an inexpensive car. If the car isn’t worth much, you can avoid carrying Collision coverage (one of the more expensive items on your insurance). The risk you take is that the teen totals the car. If this happens, you have no coverage without Collision. We would argue that you would have spent that money on insurance premium, so the worst-case scenario is a wash. The best-case scenario is significant savings!
- “B” average. Insurance companies provide a Good Student discount for teens with a B average. The savings can be as much as 20%!
- Drive safely! Any ticket or accident is going to cost dearly at the next insurance renewal. Emphasize good driving habits—no texting or drinking. Each year of experience with a clean record helps to eventually lower premiums.