How to Lower Car Insurance for Teenagers

Posted on Jul 14, 2016


For many teens, getting a driver’s license is the first of many important rites of passage. For their parents, on the other hand, it opens a new world of fears and concerns. Aside from the safety concerns, there are concerns over auto insurance and the impact of adding a teen driver to your monthly rates. Consider taking these steps to help reduce the costs of auto insurance for your teen driver.

Allow Companies to Track Your Driving

Many insurance companies are willing to offer discounts to drivers who can verify safe driving habits and they learn how you drive by tracking your habits behind the wheel. They use this information to calculate how likely you are to have an accident and offer substantial discounts to safe drivers.

Take Safe Driving Classes

Most insurance companies will offer a discount for students who take an approved driving safety or driver’s education course. Some companies will even offer greater discounts for students who complete more than one qualifying course. Just make sure the courses you invest in are approved by your insurance company if you’re hoping to qualify for discounts.

Encourage Your Teen to Earn Good Grades

Students who have a “B” average will qualify for deep discounts through most insurance companies. Not only can it save you money on auto insurance, it can serve as excellent incentives for your student to pull up his or her grades.

Choose a Safer Model of Car

There are many different types of automobiles on the road today. Some have more safety features and higher safety ratings than others. Choose cars that have the highest safety ratings for the model years you purchase and avoid those that have lower safety ratings. This will help to reduce the likelihood and severity of injuries if an accident happens and insurance companies appreciate this – rewarding you with lower insurance rates.

Opt Out of a Shiny New Car

Many parents dream of giving their teens a shiny new car. However, if you’re concerned about insurance rates, you’d do better to consider an older model car with a high safety rating. Repairing and replacing older cars is less expensive for insurers and that will result in savings for you.

Add Students to Your Policy

Multicar car and other insurance discounts are nothing to dismiss. The savings of adding your teen to your policy rather than purchasing a new policy can be substantial. Then you have the convenience of having everything on one policy when something goes wrong rather than needing to track paperwork for several different policies.

Shop Around and Compare Prices

Shop around and see which company offers you the best coverage for the best price. Don’t forget to ask about discounts you may qualify for while comparing. Better yet, work with an organization that takes care of that for you. An independent insurance agency works with many providers and will compare policies and prices to help you get the best possible coverage for a price that works with your budget.

Increase Insurance Deductibles

By raising your deductibles, the amount you’re expected to pay out of pocket for repairs after an accident, you can reduce the amount of your insurance premiums. This can net your family a great deal of savings. However, it increases your financial obligations when accidents do occur.

Otterstedt Insurance Agency has been working with families for almost 100 years. During that time we’ve helped with many milestones from insuring first homes to the delicate task of insuring teen drivers. Call us today and let us help you get the right insurance protection for your teen drivers without breaking the bank in the process.

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