Summary: If you are a young driver or have one in your family, premiums can be high. Having younger drivers on the same policy as their parents, shopping around, finding discounts, and getting good grades can help lower premiums. You can even take safe driving courses or raise your deductible to save on your monthly expenses. Estimated Read Time: 3 mins
The cost of car insurance for young drivers can be difficult for families. Because teens are the riskiest group to insure, premiums are high but there are ways to save money. The best option for cheap car insurance still needs to cover younger drivers in a way that protects everyone’s finances while on the road. Below, we’re looking at ways how to make car insurance cheaper for young drivers.
Parents Should Include Teen Drivers on Their Auto Policies
When looking at how to make your car insurance cheaper for young drivers, the first step should be inclusion. Keeping premiums down for teens means that in most cases, including them on your policy as a parent is the best move.
Including a teen driver on a parent’s auto policy yields multiple advantages, including the inclusion of the parent’s insurance history. Additionally, bundling discounts and savings from the parent’s policy can apply, enhancing cost-effectiveness.
Adding young drivers to a parental auto policy also means there are fewer oversights and helps foster responsible, safe driving habits.
Get the Best Car Insurance Rates by Shopping and Comparing Carriers
It’s important for teen drivers to shop around and compare insurance carriers to secure the lowest premiums. Exploring different options, including bundled discounts for multiple policies, helps identify cost-effective insurance solutions.
Additionally, comparing quotes enables a thorough assessment of coverage options, ensuring sufficient protection while keeping expenses minimal.
Low insurance for young drivers will vary based on a number of personal factors, however, the only way to know for sure that you’re getting the best deal is to compare your options.
This includes comparing bundles and discounts. Working with an insurance broker can help you find a range of options in your area to compare the best options for your auto insurance needs.
Teens With a Good Driving Record Pay Less
Everyone saves money by driving safely and keeping a clean record, but teens can arguably benefit the most. This is because they are already viewed as higher risk policies and establishing a good driving record can help both in the present and future.
Avoiding violations and accidents prevents premium hikes and qualifying for safe driver discounts can help teens and families stay safe on the road and lower premiums. Prioritizing safe driving shows responsibility and leads to substantial insurance savings.
Ask About Discounts for Teen Drivers
Asking about discounts, like the good student discount, can yield significant savings on car insurance premiums for teen drivers. Insurers often reward students with good grades, acknowledging their responsibility and commitment. By excelling academically, teens can access these discounts, cutting down on insurance costs and encouraging academic success.
Finding cheaper insurance for young drivers can also often be associated with purchasing a vehicle for teens. Multi-policy discounts are a great way to save even more for the protection your family needs when on the road.
Increase Your Teen’s Deductible (Carefully)
Raising deductibles is a potential money-saving tactic for auto insurance, but it comes with risks you need to consider. Although higher deductibles often mean lower premiums, teen drivers being prone to accidents, may find themselves needing to use the deductible more frequently.
This means that while you may save on monthly premiums, you’ll need to be prepared to pay a higher deductible in the event of a claim down the line. Be sure to evaluate your financial readiness and comfort with risk before opting for higher deductibles.
Lower Insurance for Young Drivers With Driving Classes
Enrolling in driving classes to improve skills offers teen drivers a chance to receive low car insurance premiums. Accredited driver education programs not only enhance driving abilities but also qualify young drivers for discounts from insurance providers.
By finishing recognized driving courses, teen drivers can showcase their dedication to safe driving, potentially resulting in substantial savings on insurance premiums while promoting safer driving habits on the road.
Sources:
1. Adding a teen driver to your insurance policy?, TDI. Accessed February 2024.
https://www.tdi.texas.gov/tips/adding-teen-driver-to-insurance-policy.html