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How to control auto insurance costs with your teen driver

Auto insurance rates for teen drivers are always going to be relatively high compared to experienced, safe drivers. This is mainly due to the fact that new drivers, especially young ones, are not always giving their vehicle, and the road, the respect that they both deserve. Luckily, there are a few things you can do to help lower the insurance premiums for a teen driver, including:

  • Having them take a driver’s safety course
  • Making them drive a relatively inexpensive vehicle
  • Only getting liability insurance on the teen’s vehicle
  • Showing responsibility with a report card

Driver’s Safety Class

Some auto insurance companies will lower your teenager’s premiums if they can successfully complete a driver’s safety class. Generally, these classes only take a few hours, and will not cost more than $100. By completing a safety course, you are helping your teenager understand more about the rules of the road, and showing the insurance company that they may be less likely to get in an accident.

Cheaper Vehicles

The less a vehicle costs, the less it will cost to insure it. You will still be paying more compared to an older driver, but teen drivers are about as likely to get into a wreck with a $5,000 car as with a $15,000 car.

Liability Insurance

If the vehicle is outright owned by you or your child, you should have the option to only purchase liability insurance on it. This can greatly reduce the premiums since the insurance companies know they will not have to cover the loss on your teen’s vehicle if they do get into an accident. Generally, if your teen gets into an accident that is not their fault, the other party should be responsible for the cost to replace or repair both vehicles.

Show Their Good Grades

A student with straight As can sometimes get an insurance discount. This is because insurers will see the grades and make the determination that, at least on paper, your child seems to be responsible in school, which may also mean that they are responsible on the road. Many of the larger insurance companies provide some sort of discount for good grades, the exact amount however depends on each individual insurer.

If your teen will be getting their driver’s license soon, talk to us about an auto insurance coverage plan that works for your family.