How to Keep Auto Insurance Cheap with a Teen Driver

Written by Bethany Harris on March 26, 2010 & Posted in Auto Insurance

Adding your teenager to your automobile policy considerably changes the rate you pay. Because teens lack driving experience they rate high in vehicle crash statistics. Though teen related car accidents cost consumers billions of dollars annually, there are ways to cut your policy rates significantly and encourage safe driving practices.

Reducing Auto Insurance Rates

  • Increase the deductible: Raising your policy deductible automatically lowers the policy premium. If your deductible is $250, an increase to $500 or $1000, can save 20 percent or more
  • Good grade discount: Many car insurance companies offer policy discounts when an insured student maintains good grades. Rewarding top grades with driving privileges is often an incentive for teenagers to perform well, and become more responsible
  • Stylish vs. Practical: Many teenagers would choose a new sports car over an older mid-sized economy car. A flashy car increases risk, which equals higher rates. Insuring a sensible and safe vehicle helps to keep rates low
  • Pay annually: Paying premiums monthly, or quarterly, is convenient if you cannot pay the full amount. But fees are often added for this convenience, which increases the payment amount. Submitting payment in full, once a year, eliminates convenience fees
  • Compare rates: Shop and compare rates of car insurance companies for the best quote. This can be done online in a few minutes. Use the quote form above to begin shopping for auto insurance rates

Keeping It Safe:

According to a 2007 study, reported by the Highway Loss Data Institute, the number of collision losses of cars insured for teenagers is more than doubled that of vehicles insured for adults. The first few months of licensed driving presents a higher risk of teen auto accidents. Encouraging safe driving practices helps to control the cost of the policy.

  • Driving Curfew: Instituting graduated driving, by limiting night driving, makes teens less vulnerable to situations normally seen when driving during the day. For example, cyclists or animals on the road are often harder to spot while driving at night. Four out of 10 teen deaths, caused by car crashes, occur between 9:00 p.m. and 6:00 a.m. The graduated driving restriction has contributed to the reduction of auto accidents involving teenagers by 40-60 percent.
  • Passenger Restrictions: The risk of an auto accident increases each time a passenger is added to your teenager's vehicle. While teens are developing skills to operate a car safely, limiting the number of passengers in your teenager's car is encouraged during this stage

Learning to drive is an experience for the entire family. Sharing information and educating your teenager about driving safety may help to keep your auto insurance rates low. To compare auto insurance rates enter your zip code in the form above.

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About the Author

Bethany Harris is an internet specialist in the automotive industry, and freelance writer. Her background includes being a state licensed insurance broker, and commercial insurance services professional. With a diploma in public speaking and human relations, she is also a full-time student completing her degree in communications.


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