Adding a Teen Driver to Your Automobile Insurance Policy? 4 Ways to Keep Costs Down
When teenagers reach that magic age that allows them the privilege to operate a vehicle, they usually can’t wait to get behind the wheel. I, as a parent, had butterflies in my stomach too, but they had more to do with nervousness and fear, because I know teens are a high risk group whose inexperience tends to result in accidents and incidents. Because of this fact, I also knew our automobile insurance premiums were about to go up. There are some things you can do to keep finances on track. Taking these four steps may keep your premium lower.
- Increase your deductible. If you have savings or credit that can handle the deductible you will need to pay in the event of an accident (which hopefully won’t be necessary), it makes a significant reduction to your premium.
- Enroll the teen in a safe driving class. Your insurance agent can provide information on a class to take, either locally or online, that will earn your teen a certificate and lower your bill.
- Require good grades. Many insurance companies offer a discount for students who maintain a certain grade point average. Encourage your child to put the time and effort into keeping grades up so the insurance premium can go down.
- Choose your vehicles wisely. An older, but safe vehicle is going to cost less than insuring a newer truck, SUV, or sporty car. Ask your agent for a list of vehicles that have safety features that make it a good choice, both for your child’s health and for the family’s budget. If the family owns several vehicles, always list the teen as the principal driver of the one that is the least expensive to insure.
If you’re still struggling with the cost of insuring a teen driver, contact us. We understand the struggle and can offer other suggestions, such as a different payment plan, or other changes to your policy that will make it more affordable.