Auto Insurance: Insuring Your Teen

Teenage drivers are a group of people that car insurance companies get especially nervous about. To insure a teenager, you will have to pay hefty premiums and should expect to have at least a few claims to deal with in your near future. Why is this? The truth is that a 16-yr-old on the road is considerably more likely to get into an accident than a person of any other age.

However, it’s not so black-and-white with most insurance companies these days. Some teenagers are deemed a lower risk than others and thus, premiums will be lower for them as a result. So if you’re looking to save some money, and keep your teen safe on the road too, there are several discounts you may be able to take advantage of. Here are some tips to qualifying for them!

Encourage defensive driving habits and stress the rules of the road

The best way to decrease the premiums on your teen’s car insurance policy is for them to have a clean driving record. If they can beat the statistics, then you will be saving a lot of money over time. Don’t be nonchalant about your teen’s driving habits. Ride with them if possible and reiterate as much as possible all the driving laws. Give them tips about protecting themselves from other, more reckless drivers too. It may even be a good idea to only let your teen get their license when you feel they are ready to drive – not necessarily when the state thinks they are.

Help them with their homework

If your teen has good grades, this means you may get to pay lower premiums! Not only will you want them to do well academically to help them with their college aspirations, but also their hard work can benefit your piggy bank. Keep tabs on their progress in school and consider paying them for good grades.

Enroll them in a driver’s education course

Not only will your teen be less likely to get into an accident if they take a driver’s education course, but there are discounts available simply for enrolling them in one.

Only let them drive a fast car

Avoid letting your teen drive around in a car that is dangerous to drive. That sports car may be cool at first site – but it sure won’t be all that great looking totaled and in a junkyard. When your teen first begins driving, they are still learning. Give them training wheels. Safer cars also mean lower premiums.

Give them more incentive to drive safely

If your teen is still taking risks on the road, despite your nagging, let them know that in the case of a wreck, they will have to pick up some of the tab of the insurance costs. Whether it be through doing some household chores or working at a local fast-food joint – let them know that they will have to find a way to pay for some of the insurance (however much is up to you) if they insist on being a risky driver.

Warn them about drunken driving

Lastly, make sure to enforce upon them the dreary statistics about drunken driving and the serious consequences that can result if they drink and drive.