Car Insurance for Teenagers Ways to Save Money

Turning 16, getting a driver’s license, and car insurance for teenagers is a rite of passage for many. They are excited because driving gives them independence. Parents love it too, because they suddenly do not have to drive their kids everywhere they want to go. But a big jump in insurance premiums goes along with any teen driver.

Fortunately, there are ways to keep that rate hike as low as possible—besides refusing to let your teens drive. Get as cheap student car insurance as possible with these easy ways to save money.


Discounts for Teenagers

Believe it or not, insurance companies do offer a few discounts for teenage drivers. Ask your agent what your company offers. The Rocky Mountain Insurance Information Association suggests looking for these discounts:

  • Good student discounts: These are offered by most insurance companies, generally to students who have at least a B average. (Yet another reason to stay on your kids to get good grades!)

  • Driver’s training: Many companies will offer discounts to students who provide evidence that they have completed a driver’s training course.

  • Insurance safety programs: Some companies give discount car insurance for teenagers if they use devices that monitor their driving. These could include cameras or other devices that record speed and location.


The Car Matters

The best car insurance rates will vary with each car. Models that are popular targets for car thieves are more expensive to insure. Your agent will tell you which cars cost more to insure. Discounts may be available for safety features in the vehicle, such as airbags, automatic seatbelts, and antilock brakes. While this discount does not specifically apply to teenagers, it could help level the playing field between a newer car with safety features and an older car without them. Having the teenager drive the older car is not necessarily the cheapest (or safest) option.


Changing Coverage May Be the Answer

Many times, car insurance for teenagers drive up the price of your own rates through the sunroof. If so, it may be time to look at other options. Get quotes from several companies and see how they stack up. Decide on the coverage you want first and compare apples with apples; it does not help if each quote is for different levels of coverage.

Learn which coverage is minimally required by your state. Easy ways to save money include looking for costs to adjust. Increasing your deductible is an easy change to make, and it will reduce your premiums. Be sure not to make the deductible so high that you will be in financial hot water if you are involved in an accident.

Another simple adjustment is to drop full coverage on older cars. The most your insurance will pay out in case of damage or total loss is the Kelley Blue Book value of the car, so if that is not very high you are better off saving your money and sticking with the minimum coverage.

Regardless of what you decide, look carefully at each cut you consider. Especially with a new driver in the house, you may need cheap student car insurance sooner than you think.


Hope for Families with Teen Drivers

Because of the relatively high accident rate that inexperienced drivers have, car insurance for teenagers is usually expensive. The good news is that there are ways to make those high premiums a little lower. And because you have used these easy ways to save money and found cheap student car insurance as a result, maybe Junior will not have to wait until he is 30 to drive the car after all.

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Christopher Jensen is a writer and car enthusiast offering advice on how to find the best auto insurance to meet the needs of those looking for Ohio auto insurance plans.



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