When you have a new teen driver in your home, just thinking about auto insurance costs can make your head spin. Luckily, there are quite a few ways that you can save on the cost of insuring your new teen driver. Here's four ways to do this:
- Add Them to Your Policy: Instead of purchasing a separate policy for your teen driver, add them onto your existing policy. Bundling policies is always more affordable than having separate policies. The best way to save on the cost of adding them to your policy is to insure your teen with the car that is the cheapest to insure. This is because teen drivers increase rates just because of the higher risk of them being involved in an accident. If they drive any other car on your policy, add them as someone who sometimes drives the vehicle. Although this will raise costs slightly, it's better than your teen getting in an accident and the insurance company dropping the coverage because you didn't let them know your teen would be driving that car.
- Talk to Your Insurance Company Before Purchasing a Car: If you are going to be buying a car for your teen driver, you want to talk to your insurance company about what this will do to the cost of your insurance. This way, you know how much you can afford for a car. The best option when purchasing a car is to purchase a used car, which is going to be less expensive to insure over a new car.
- Talk About Discounts: Many insurance companies will provide discounts to teen drivers. For example, many teens will be eligible for a discount for having good grades, typically a 3.0 or higher. If your teen participates in school activities, such as ROTC, they can also be eligible for a discount for this, as well.
- Get Coverage That's Needed: When it comes to insuring a teen driver, only get the coverage that you absolutely need. For example, if you purchased a used, older car for your teen in order to save money, you can further save money by only purchasing liability coverage for this vehicle. It won't be worth it to purchase collision coverage since the cost to replace the car is likely going to be as much as the deductible. You also don't need comprehensive coverage for this reason.
When you know these four ways to save money, you can be sure that you save the most money possible on getting your teen driving safely on the road. Contact an auto insurance company like Oliveira Gilbert C Insurance Agency Inc for more ideas on how to save.