How to Get Cheap Insurance for Teenagers
Teenage drivers have a much higher rate of accidents due to their inexperience and higher-risk behavior. Some insurance companies even refuse to insure them.
The good news is that by aggressively seeking discounts and using some smart strategies, you can easily cut your teenager's premiums in half.
The first step, as with anything to do with insurance, is to shop around and compare rates.
Different insurance companies treat teenagers differently and some will charge insane rates while others are more reasonable and offer discounts for young drivers.
It's important that you compare rates every year from the time your teenager sarts driving until they turn 21.
Some insurance companies drop their rates considerably as your teenager gets older - the only way you'll find out is to get rate quotes.
If you've been with the same insurance company for several years, don't switch to another provider unless the savings will net you more than $300 per year. This is because insurance companies are more likely to give you a break if your teenager has an accident or gets a ticket if you've been with them for a long time.
Cost Saving Strategies
Here are some strategies to you should follow to cut your teenager's rates down to the bone.
Get a Safe Car
The type of car your teenager drives makes a big difference in the premiums you'll have to pay. You want to get them into a safe mid-sized car that isn't more than 6 to 10 years old (meaning it has some of the latest safety technology). In addition to saving you money on car insurance, this will provide you with peace of mind.
Put The on Your Policy
It's best to add your teenager to your current auto policy as an occasional driver of the safest car you own. If they have their own car, you should still add them to your policy to get a multi-car discount.
Raise the Deductible
You should raise your deductible to at least $1,000 or even consider not having collision or comprehensive coverage if the car is only worth a few thousand dollars. This can save you over $500 per year.
Many insurance companies offer good student discounts to teenagers who maintain a B average or better in school. This can reduce rates by up to 30%. Some also offer discounts if your teenager takes a driver's education course or completes special programs, such as those offered by State Farm for drivers under 25.
If your teenager goes off to college more than 100 miles away and doesn't take their car, they will get a big discount and still be covered when they come home to visit.
Clean Driving Record
The best way to lower a teenager's insurance rates is to make sure they maintain a spotless driving record. If you think the premiums are high now, wait until you see what they'll become if your teenager gets a speeding ticket or gets into an accident.
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and NADAGuides are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid