Any parent with a new teenage driver will face a huge car insurance premium hike. In fact, you should expect to pay at least a couple of thousand extra per year in car insurance premiums when your teen is licensed. For many parents this number is a shock and they look in earnest for better rates.
Thankfully, there are are a number of different strategies for finding cheap auto insurance even with a new teenage driver on the family auto insurance policy.
Read through this article to learn some money saving tips for finding cheap teenage car insurance for your new driver and then above all be sure to enter your zip code in and get your free car insurance comparison today!
Factors That Impact Teen Car Insurance Premiums
There are a wide variety of factors that cause car insurance premiums to differ greatly from one teen to another. By understanding these factors, you will see the logic in decisions made by underwriters and you may even have a better chance of finding a good deal in teen car insurance.
Gender makes a huge difference in premiums. Boys always have higher rates than girls in their teen years. At age 25, it ceases to be important, as rates drop for both.
If your teen has taken a driver training course, his or her car insurance premiums will be lower than for a teen who hasn’t taken such a course.
If you list your child as a driver on all your vehicles, you will also find that the premiums are higher than necessary, especially if you have a vehicle which is costly to insure. Therefore, limit the coverage to one car and permit your teen to only use it.
Where you live will also affect the price of car insurance. Urban dwellers are more likely to have higher rates than rural residents.
Discounts That Help Reduce the Cost of Teenage Driver Insurance
When you are looking for car insurance for new teenage drivers, be sure to ask about the different discounts that the insurer may offer. Each company has a different line-up of discounts and some are very unique, so it is important to check with every company. Some of the ones that may be most helpful include discounts for:
- Good students
- Students living more than 100 miles away at college
- Member of certain groups
- Low annual mileage
- Vehicles equipped with factory installed safety features
- Having a good driving record
Tips for Parents of Teenage Drivers
You can take some control of the hefty cost of insuring your new teenage driver in a variety of ways. Purchase an older vehicle for your child and take out a new policy for it. Exclude him from coverage on your own vehicles and make sure that his driving is done on his own vehicle. Older cars can usually get away without collision and comprehensive coverage because of their lower values. You can also feel more confident that many of the older vehicles are more sturdily made than newer vehicles and are harder to drive recklessly in. You will also protect your own coverage from rising by opting to do this.
If you choose to get collision and comprehensive coverage on the vehicle, opt for higher deductible options. This will help you keep your overall premiums down.
Make sure your teenager takes driver education, in order to best prepare him to drive but also to help the insurance rates you pay. Encourage him or her to have good grades and to keep his driving record spotless. By doing so, you can help keep insurance rates as low as possible.
Know Your Insurer
Shop around for insurance companies that lower premiums for every year of good driving. Compare the different insurers carefully as there each have different guidelines and you want to find the one serving your area that is most accepting of new teenage drivers. Investigate the companies you are considering taking a policy with. You should find out their insurance rating from one of the independent insurance ratings companies like A.M. Best or Moody’s. This will tell you if they are economically stable or not. Avoid companies that have less than a B rating.
In addition you will want to check into the company’s customer service record. This can be done through your state’s department of insurance, which usually carries lots of information about each insurer and the complaints received about them. By doing a simple online search you should also be able to find valuable information concerning customer feedback on them.
When you are ready to get the best rate possible for your new teen driver, start by shopping around. Get a variety of quotes from top insurers serving your area quickly and easily by using a free online car insurance quote tool. This will provide you with an excellent starting place for finding the best coverage at the best price. Get started with our free online quote tool today and in no time you’ll be comparing the many car insurance quotes you need to consider!
