How To Lower The Price Of Teen Car Insurance
According to the NHTSA, traffic accident rates between ages 15 and 21 are much higher than any other age group. The IIHS says that 16-year-olds are 10 times more likely to get in an accident than drivers between ages 30 and 59.
According to AAA teen car accidents cost over $34 billion every year. It’s easy to understand why car insurance for teenagers entails higher rates.
In spite of the discouraging statistics and facts, there are many ways to save money on teen car insurance:
Buy a safe and reliable car. The more safety features you add, the more affordable car insurance will be. When it comes to your kids, you want them to be safe anyway; the discount in insurance rates is an additional bonus.
Check for applicable auto insurance discounts such as good students discounts. Usually a 3.0 or higher GPA (B student) can get you a 10% discount.
Include your teen in your policy. Although this may entail a 50% increase to your payments, signing him up as an additional driver in your policy will transfer whatever discounts you get into their rate as well. Overall, the price will be more affordable than having separate policies.
Have them sign up for driver’s ed classes. Insurance companies often recognize this as an effort to be a safer driver and reward it with a discount of up to 10%.
If your kid does get a ticket, try to negotiate and have him go to traffic school instead. A ticket will stay on his record longer, which will have a direct impact on insurance rates.
Enforce a strict no drugs and alcohol rule. NHTSA statistics show that drunk driving was part of 25% of all accidents that resulted in teenage fatalities. Drunk driving is a serious offense and his or her driver’s license can be revoked or suspended. That can destroy a driving record and eliminate all possibilities of future discounts on auto insurance.
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