If you have a teenager, you’re probably dreading the day he or she begins driving. For one thing, it’s scary for a parent to know their child will be operating a vehicle independently. There seems to be a million bad decisions an inexperienced driver can make. Aside from physical danger, you’re probably nearly as concerned about your auto insurance rates. Having a teenage driver in the household can double your monthly premiums. Luckily, there are several steps you can take to lower your auto insurance costs:
1) Encourage good grades. Many insurers offer a discount for high school and find a way to motivate your child to study hard.
2) Complete a driver education course. Another common discount for teens is based on completion of a driver education course. Different insurers have different rules for this discount; for some, your child must complete an actual class. For others the requirement may be watching a video or reading a defensive driving manual.
3) Tell your insurer if your child goes away to college. If he or she goes to a college more than 100 miles away and doesn’t take a car, you might get a big break on your premiums while still maintaining coverage for those times your child returns home for a visit.
4) Buy your child a safe car. The safety rating of the car your child drives can affect your auto insurance rates. The Insurance Institute for Highway Safety can provide you with safety ratings so that you can compare between different models of car.
5)Utilize multi-policy discounts. Most insurance companies offer a discount for carrying all of your home and auto insurance policies with them. You may also get an additional discount for purchasing an umbrella policy, which provides extra liability coverage. These policies can be valuable for a household with a teenage driver.
6) Have your child work and pay for his or her own auto insurance. This not only saves you money; it also teaches responsibility. If your child makes poor decisions, such as speeding, he or she will have to cover the increase in insurance premiums.