Money for Any Reason You May Need!

How to Afford the Cost of a Teen Driver

When your teen starts to drive, the one thing that might be on your mind is the added expense of car insurance and how it’ll have an impact on your insurance policy. Putting a teen on your insurance policy can cause your insurance premium to rise by over 50 percent and can even double in some situations. This is due to the fact that teen drivers have a much higher chance of getting in an accident, so much so that car accidents are the leading cause of death for US citizens between the ages of 15 and 19. This causes insurers to charge insurance rates that are higher than any other driving classification. The good news is that there are some great ways that you can save major bucks on your teen driving.

Allow Insurance to Keep Track of Your Teen’s Driving

There are quite a few insurance carriers that are now using a program referred to as “telematics”. This program uses technology to allow insurers to take scope of your driving quality. For example, Progressive uses a program called “Snapshot” that uses a little piece of hardware in the back of your steering wheel to transmit data to them to see on average how fast you’re going, how hard you slam on the breaks and the time that you’re on the road. You can save as much as 30 percent by using such a program on your teen.

Ensure You’re Receiving a Good Student Discount

There are some insurance discounts you receive automatically such as when you increase your deductible or purchase a car that has an anti-theft device attached to it. However, the discount that you can receive for your teen being a good student isn’t one of them. In order to receive this discount, you must call your insurance agency to see if you qualify. The discount amount you receive will vary by state, but typically are between 10 and 20 percent. In most cases, your teen will need at least a B average to qualify. Additionally, you should see if there are any discounts that your insurer specifically offers such as for taking an online driving safety class.

Use a Distant Student Discount

You should take full advantage of a discount that may be offered to you if your teen is going away to college. If your teen is planning to attend a secondary school that is at least 100 miles away, there are many insurers that will give you a discount for temporarily removing them from your policy if they are not bringing their car with them.

Purchase an Older Car for Your Teen

Just-licensed teens will always want a new shiny car. However, it’s much more likely that they will get a used one. Besides saving you money in the car purchase, buying a gently-used car for your teen will actually save you money when it comes to insurance. In most cases, buying an older car will give you a lower premium than if you were to buy them a new one. However, you must also weigh this with the fact that a new car may have its own insurance savings. For example, a new car may come with built-in safety features like anti-theft devices that will lower your premium expense as well. Additionally, the newer the car the more it can protect your teen from a crash. Due to this, it’s important to look into both your cheapest and your teens safest options.