If a teen in your family is going to start driving and you want to find adequate insurance coverage for him/her without having to pay a sky-high premium, these are some steps you can and should take. We have listed these below.
Note that while the premiums charged by major carriers in your age bracket may be fairly standard, the same cannot always be said for drivers between the ages of 16 and 25.
You may save 10 to 20 percent by opting for a higher deductible, but consider whether are prepared to pay the out-of-pocket costs if your teen is ever involved in an accident.
You should also think about providing your teen with a separate policy if you drive an expensive car or your own driving record is poor.
If you plan to buy another car, register the vehicle in your name and choose one in the “stodgy and safe” used car category. It should do fairly well in a crash test, will not be particularly attractive to thieves, and will help in controlling the premium.
Have your insurer assign your teen to the least expensive car that you own, if that can be arraigned. (Not every company is willing to do this.)
It is better to have your teen enroll in a driver-education program as opposed to giving him/her driving lessons yourself, and there will be less emotional involvement for both of you. If your insurer approves, you should be able to save as much as 15 percent on your premium.
You may also discover that your insurance company offers “safe driver” courses to their policy holders. In this case, young drivers must sign a contract and agree not to drive if they have been drinking. Once they complete the program, you may be able to reduce your premium by an additional 5 percent.
If your child has a grade average of B or better, make your insurer aware of this. Research indicates that there is a correlation between getting good marks and being a responsible driver, and you may be eligible for a good-student discount, which varies from 5 to 10 percent.
When your teen goes off to college, you may qualify for a lower premium as well. A number of insurers reduce the rate for a student enrolled in a school that is 100 miles or more away from home with no car on campus.