How To Keep Your Teen's Auto Insurance Rates From Emptying Your Wallet

When your teen starts driving, you will likely have two concerns: their safety and the cost of their auto insurance. Teens are known for being expensive to insure since they are inexperienced and at a higher risk of an accident. However, you should not have to empty your wallet in order to insure your teen driver as long as you follow these tips.

1. Enroll them in driver's education.

In most states, driver's education is no longer mandatory in order for teens to get their license. But if your local schools offer a program, you should still enroll your teen. Driver's education will allow them to learn the ins-and-outs of driving from a professional, rather than just from their parents, which will ultimately make them a safer driver. The insurance company knows this and will usually offer significant discounts for teens who have taken driver's ed.

2. Have them take a defensive driving course.

In addition to driver's education, you can enroll your teen in a defensive driving course. These classes usually last five or six hours, and they will teach your teen strategies to avoid accidents. Most formats focus on the dangers of texting and driving, how to avoid and react to road rage, and the risks associated with drinking and driving. Insurance companies often grant a 10% discount or more to those who take these courses.

3. Work on their grades.

There's something called a "good student discount." Most car insurance companies offer one, and if yours does not, you should probably switch insurance companies! It is generally rewarded if a student gets all A and B grades. Some insurance companies may have a numerical requirement, so check with yours to learn their exact regulations. Explain to your teen how important it is for them to keep their grades up so they can drive affordably.

4. Buy an older car.

The cost to insure your teen will depend, in part, on the car you are insuring them to drive. If you have new, high-quality vehicles, you will pay more for your teen's insurance than if they were to drive a 10-year-old sedan. Consider buying them an older car. You may get away without paying for collision insurance on this vehicle, too.

Insuring your teen will likely be more expensive than insuring yourself, but there are steps you can take to keep costs down. As your teen grows up and maintains a safe driving record, their insurance rates will drop further.

Share