FAQ

How to save money on car insurance for young drivers

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Being a parent is one of life’s most rewarding experiences, but it certainly doesn’t come cheap! As you move from diapers and formula to sports fees, tuition, music lessons, summer camp and more, parents of teens know better than anyone the value of a good discount. And you may never appreciate a discount more than when your teen starts driving.

Reading: How to save money on car insurance for young drivers

Studies have shown that adding a 16-year-old driver to your auto insurance policy can increase your premium by an average of 78 percent. the good news? Many insurers offer discounts to help offset the cost of insuring a teen driver. Don’t let the sticker surprise get the best of you!

why it costs more to insure teen drivers

Insurers use insurance scores much like lenders use a person’s credit score. In other words, your insurance score will provide a baseline assessment of your “risk.” riskier scores generally result in higher insurance rates, while lower risk translates to a lower price point.

FYI: The national average auto insurance premium for a 16-year-old driver with minimum coverage in the United States is $2,593.

Teen drivers between the ages of 16 and 19 represent the riskiest age group of all drivers. According to the CDC, this age group is involved in more car accidents than any other. Teenagers are generally classified as “high risk” until the age of 25, at which point they may finally start to notice the cost of their car insurance going down—assuming they have a clean driving record, of course.

then your teen is locked into a category of “risky” driving for years to come. what can you do to save money in the meantime?

how to save money on car insurance for a teen driver:

1. put your teen driver in a safe vehicle.

While your teen may have her sights set on a luxury sports car, the choice of her first vehicle is important, as it can directly influence the cost of her auto insurance. Insurers often reward choosing a vehicle with safety features, such as:

  • air pockets
  • anti-lock brakes
  • automatic seat belts and/or seat belt alarms
  • power steering
  • See also: How Much Does a Teeth Cleaning Cost With and Without Insurance?

    Your insurance agent can calculate a free, no-obligation rate quote while you shop for a car, to give you a better idea of ​​what to expect. It’s definitely worth doing your homework and finding out how much it would cost to insure your teen on a used sedan instead of a new SUV before you make any big purchases.

    2. encourage your student to get (and keep!) good grades.

    This is a no-brainer for parents of high school and college students. hit the books! Some insurers offer a discount for good grades that can range from 5% to 25% off. For a $2,400 policy, that could translate to savings of up to $600!

    To qualify for a “good grade” discount, a driver must generally maintain a “b” average while enrolled as a full-time student. Please note that not all insurers offer this discount. those that do base their discount on the fact that teens with good grades tend to be better and safer drivers.

    Ask your insurance broker if your student qualifies for a “good grade” discount on their auto insurance policy.

    3. complete a driver education course.

    Speaking of good students: Insurers often reward teen drivers who complete a driver’s education course with a 5-10% discount.

    Some insurers, such as liberty mutual, offer their own safe driving program through the company’s mobile app. others will accept documentation of course completion through your teen’s high school or an online program. Driver’s education courses are commonly offered free or at low cost to help encourage participation. what are you waiting for?!

    4. consider bundling into a family policy.

    On the surface, it may seem like a great lesson in financial responsibility to have your child pay for their own individual auto insurance, however, you may want to reconsider that strategy for a couple of reasons.

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