Insuring a Teen Driver: How to Save Money

When your teen starts driving, you may see your insurance costs rise significantly. Use this checklist for money saving advice on insuring your teen driver.

When your teen gets behind the wheel, it might mean freedom and independence for them and extra worry and expenses for you. Fortunately, there are strategies to potentially reduce your insurance costs.

Consider these six options that could help save money on car insurance for your teen driver.

• Add your teen to your existing auto policy instead of opening a new policy. Your teen can take advantage of your credit history, driving record, and carrier loyalty, which can all lead to discounts.
• If you are purchasing another vehicle for a teen driver, this choice can have a meaningful effect on your overall insurance costs. Discounts may be available for cars with good safety ratings and modern safety features — such as anti-lock brakes and anti-theft protections.
• Insurance providers may offer discounts if your teen maintains good grades, completes driver’s education courses, and establishes a safe driving record. Check which discounts your provider might offer.
• If your son or daughter will attend a college away from home and won’t be driving a car regularly, you may be eligible for more discounts. Find out whether you are eligible for resident student or occasional operator discounts to reduce your premium.
• If your auto finance company and insurance plan allow it, you may be able to lower your premiums by increasing your deductible (the out-of-pocket costs you would pay during a claim). This could be a good strategy if the car isn’t worth repairing or if you can handle the increased costs in case you do need to make a claim.
• Some insurance providers offer discounts to those who install electronic monitoring devices in their teen’s vehicle.

Listing a new driver may result in increased insurance premiums, but the right coverage, car, and decisions can help keep your costs manageable.

Did you know that a few simple lifestyle changes may help you save money on auto insurance? Find out more ways to lower your car insurance rates.