10 Ways to Reduce Car Insurance Premium for Teenage Drivers
Learning to drive and getting a driver’s license is an important accomplishment for most teenagers and young drivers. It is a huge step towards adulthood, independence, and self-sufficiency. However, it is difficult to find cheap car insurance for teenagers and young drivers, which hinders them from getting on the roads.
Statistics show that car insurance for teenagers and young drivers are more expensive because they are more prone to get involved in vehicular accidents, especially within the first year of driving. Thus, car insurance providers are more likely to pay higher on policies held by young drivers.
Here are ten different ways how you can reduce the car insurance premium and obtain cheap car insurance for teenagers and young drivers.
1. Higher Deductible
Your car insurance premium will surely reduce when you increase the deductibles on your comprehensive and collision coverage. Deductible is the amount you pay out of your pocket when you file for an insurance claim. However, higher deductible results to spending more money from your pocket when your teenage driver gets involved in an accident. Hence, you should set aside a part of your savings should you get into this kind of situation.
On the other hand, if you are using a 10-year old car, it is highly recommended that you give up comprehensive and collision coverage. Your car insurance company may not give you the equivalent amount when you get involved in an accident and your car gets totaled.
2. Install anti-theft and safety features on your vehicle
You will have higher probability of getting lower car insurance premium when you install an anti-theft device on the car of your teenage driver. It is also recommended that you set up an airbag or any type of restraint devices on your vehicle that will lessen the possibility that it will be stolen or broken into.
Furthermore, cars installed with alarm systems and parked inside a garage have less possibility of being stolen. Therefore, the car insurance premium will cost less. Make sure that you talk to your car insurance agent about theft-deterrent discounts and check if your car is qualified for such.
3. Enroll in driver education course
You can get cheap car insurance for young drivers if he successfully completes a driving education course or any approved motor vehicle accident prevention course from any school authorized by your car insurance provider. Inquire from your car insurance provider how your teenager can be eligible for these discounts.
A driver's safety course approved by the state, such as the driving course taught in many high schools, will help reduce your car insurance premium. If your teenage driver enrolls in the class and passes it, you can bring the certificate of completion to your car insurance and you will receive discounts on your car insurance premium.
Several car insurance companies offer discounts for teenage drivers who have mastered the skills taught in driving safety courses. Some car insurance companies also offer further discounts to young drivers who read books and watch DVDs about safe driving.
4. Get good grades
Studies reveal that students with higher General Point Average (GPA) are more responsible, more dependable, and better drivers. Car insurance providers offer 5% to 25% discount to young drivers who earn an average of B or higher in high school or college.
it is highly recommended that you talk to your teenage driver in maintaining a high GPA so that you can negotiate to reduce the car insurance premium. Furthermore, you should also explain to your teenager the importance of road safety. Inform them that the longer they drive accident-free, there is a higher possibility that you can work out on a lower car insurance premium.
Teenagers and young drivers should also understand the devastating effects of drugs and alcohol so that they will not get involved in these habits. Set guidelines regarding drugs, alcohol, and driving before your young driver thinks he has everything under control.
5. Take advantage of umbrella policy
If you purchase both car and home insurance coverage from the same insurance company, you can get cheap car insurance for young drivers. Umbrella policy is important when a teenager drives your car.
Furthermore, you will earn multiple discounts when you purchase your home and auto insurance policies from the same insurance company. Some companies offer up to 10% discount of the total premium.
Similarly, if you and your teenager drives different cars, it is best to use multiple vehicle car insurance discount. Add his vehicle to your vehicle's car insurance policy, where you can earn a discount.
6. Reduce Coverage on Older Vehicles
If you have an old car and you have already paid for it, you should consider getting rid of collision coverage. Most vehicle owners are unaware that collision coverage covers a large portion of the car insurance premium. Collision coverage pays for any damage that you cause to your own vehicle.
7. Shop around
Car insurance premium for young drivers varies from one insurance company to another. It is necessary that you compare the type of coverage and premium offered by different car insurance providers so that you may identify where to get cheap car insurance for young drivers.
Likewise, it is also advised that before purchasing a new car for your teenage driver, it is best to inquire from your car insurance provider the cost of the car insurance, which normally depends on the manufacturer, model, and year of the vehicle.
Car insurance of newer models and flashy cars are more expensive than the older and more practical models. Whether you, your teenage driver, or the entire family is going to use the vehicle, opt for something more efficient. You can always upgrade to the latest model when your teenager gets older.
8. Avoid Drugs and Alcohol
Teenagers and young drivers should also understand the devastating effects of drugs and alcohol so that they will not get involved in these habits. Set guidelines regarding drugs, alcohol, and driving before your teenager thinks he has everything under control.
Additionally, never allow your young driver to use the cell phone, whether call or text, while driving. Remind him to use seat belt always and restrict the number of passengers, especially when he is a neophyte driver. Demand that your teenage driver obeys the rules and react firmly to any violation. It is also best that you ride with your teenage driver often so that you can see how he performs behind the wheel.
9. Opt for Biannual or Annual Payment
Due to the increasing cost of car insurance, paying for your car insurance premium on a monthly basis may seem to be the most convenient option. However, you should be aware that you are also paying for the convenience with some add-on fees. To avoid paying extra charges, choose to pay for your car insurance premium on a biannual or annual mode of payment.
If the high cost of insurance makes you nervous, it is recommended that you set up your own monthly payment system. Simply divide your car insurance premium by twelve, and then deposit the particular amount to the savings account each month. This system ensures that you have the sufficient amount ready when your bill for the car insurance comes due.
10. Drive Less
When you classify your teenage driver as a primary driver of the vehicle, you will be paying higher premium on your car insurance. it is best advised that you include your teenage driver on your car insurance policy as an "occasional" or "for pleasure only" driver.
Make sure that you inform your car insurance agent that your teenager is an infrequent driver, who will be spending less time on the road; therefore, less probability of getting into an accident. This converts to lower car insurance premium.
You should also mention to your car insurance agent if you carpool with your neighbors and colleagues. it is another way of earning a low-mileage discount.
How much do you pay for your teenager's car insurance premium?
Vehicle owners should also be aware that insurance companies are now using credit score as one of the criteria for determining the cost of car insurance premium. To ensure that you are getting the best deal possible, make sure that you pay your bills on time and discuss any error that you find on your credit report.
Car insurance providers charge very high car insurance premium for teenage drivers. If you are looking to insure your teenage driver, consider the suggested ways mentioned above how you can reduce your car insurance premium.