Car Insurance for Teen Drivers
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UPDATED: Jul 19, 2021
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Cheap Auto Insurance for Teen Drivers
Most parents see their rates skyrocket when their teenage children start to drive on the road for the first time. Fortunately, it is possible to save a bundle on teen auto insurance with a little planning. Kids grow up fast so as a parent you need to face the facts that soon they will be on their own driving.
They need all the tools they can get to remain safe and keep your costs down. Insurantly aims to provide you and your family some top tips to keep the car insurance for your teen driver as optimal as possible.
Get a Safe Car for Cheaper Coverage
When your teen is driving a safe car, you will sleep better at night and your car insurance costs will be lower, too. Certain models are safer than others for teens.
The Insurance Institute for Highway Safety reports that bodily injury rates are especially low for the 2007 to 2009 Toyota Avalon, Pontiac G8, Hyundai Azera, Ford Taurus, Buick Lucerne, Honda Accord, Volkswagen Rabbit, Honda Civic Hybrid, Toyota Prius Hybrid, and Chevrolet Malibu.
The highest bodily injury rates occur for teen drivers and passengers in the Chevrolet Aveo, Kia Rio, Toyota Yaris, Hyundai Accent, Kia Spectra, Mitsubishi Lancer, and Dodge Charger. Although clunky, older, larger cars are not cool, they are the safest for young drivers.
Raise Your Deductibles on Collision and Comprehensive on Newer Cars to Get Cheaper Monthly Payments
Most teens will be involved in a fender bender or a crash. It’s not good to make filing for collision and comprehensive too easy. That’s because any time you file a claim, your insurance rates will go up, usually for three years.
Making sure your collision and comprehensive deductibles are at least $1,000 will keep you from filing the small claims that wind up costing you more in increased insurance premiums than you get from the company for your claim.
Getting Good Grades Makes Car Insurance Cheaper for Teens
Most auto insurers offer a discount to parents of teens who get A’s and B’s in school. A few C’s will not jeopardize the good student discount for your college-aged children as long as they maintain a 3.0 grade point average.
Make sure you know your kids’ grades before you apply for the discount, as most companies will eventually ask to see report cards or a transcript.
Telling Your Insurance Company If Your Child Goes off to College but Doesn’t Take the Car
Most insurance companies will give you a big discount when your children go off to college but leave the car at home, provided they go to a college at least 100 miles from your home.
You save money on monthly premiums but still have them covered when they come home on vacation.
Don’t Get Collision and Comprehensive Coverage on Clunkers
Teen drivers can get cheaper coverage by not using collision and comprehensive coverage on clunkers. If you have an especially old car, chances are that you will pay more for collision and comprehensive insurance premiums than you could ever collect, even if your car has a Kelley Blue Book value of $2,000 to $3,000. You only receive compensation for damages up to the value of your vehicle.
Older cars and high-mileage cars may have a lot of value to you, but they won’t have much value to your insurance company.
Buy Your Teen a Lower-Cost Car
If you bought your teen a lower-cost car, make sure it is the only car that your teens actually drive, and make sure your insurance company knows this. You don’t have to pay additional premiums for teenage driver liability, comprehensive, and collision coverage for cars your teens don’t drive. Listing your teens as authorized drivers only on your least expensive car can save you hundreds of dollars per year.
If you let your teenager drive another of your cars for which they are not listed on your policy and they cause an accident, however, your company may not pay your claim. At the very least it is likely to cancel your policy after it pays for the damage they cause.
Don’t Scrimp on Liability Insurance
It is often tempting to opt for minimum liability coverage when getting auto insurance for your teen. However, if your teenager does serious property damage or causes personal injury while at fault in a crash, you will be the one who is sued, even if your child’s car is on a separate policy (which usually costs more money, not less) and you never drive the car.
Choose liability coverage limits that protect your financial assets, not your teen’s.
Cheaper Car Insurance for Your Teen If They Take Driver Education
There was a time when every high school offered free driver education to all students, usually during their sophomore year, just before students would turn 16 and be eligible to take the tests to get their licenses.
Free driver education has become largely a relic of the past. However, insurance companies offer discounted premiums for teens who have taken in-car driving lessons or on-line driver safety courses and earned a passing grade.
Sometimes it is even possible to get a discount for teens who have watched a DVD or read a book approved by the insurance company. Your insurance company will let you know how to apply for the discount.
Make Sure Your Teen Follows Traffic Laws
You will save on teen auto insurance if they understand to follow traffic laws. Getting a ticket for speeding, texting and driving, driving while intoxicated, driving under the influence of drugs, or passing a school bus while it is picking up or dropping off other children does more than just give your teen to learn about interacting with the police force while accruing a substantial, expensive fine or worse.
Moving traffic violations raise insurance costs. If your teen’s infraction does not result in loss of driver’s license, you may not notice the increase rates until it is time to renew your policy, but most tickets raise already-high insurance premiums 30% or more for up to three years.
Shop Around With Multiple Companies to Get the Best Affordable Coverage
The best way to find the lowest prices on auto insurance for your teen is always to do price comparisons online. Insurance companies operating over the Internet can offer you lower rates because they don’t have the overhead involved in maintaining a brick and mortar presence and they don’t have to pay salaries and commissions to insurance agents.
Doing your search for the lowest premium rates on the coverage you need online helps you find the company that gives you the best policy with the most discounts. You have access to insurance information 24/7 and you can take all the time you want to make the decisions that are important to you.
Spend a few minutes comparing online auto insurance rates to the policy you have now. You have nothing to lose, and you might save hundreds or even thousands of dollars every year by buying the best policy at the lowest cost.