That day is here, you’ve been dreading it more and more: Your teenager is getting his/her license! You are ready for the horror that will begin with your next car insurance bill. There is hope, however, all is not lost. There are lots of ways to save money on your auto insurance, even with a teen driver.
Teens with a Permit
Might as well start with the beginning of the process getting your teen insurance. First rule: Let your insurance company know that the teen driver has a permit. Do not let your teen drive until you have confirmed they are covered. These days, there is a good chance that your child is already excluded from your policy, even before they get their permit or license. The good news is many companies don’t even charge for teenagers with a permit. However, some do charge and it could make a big difference in what you pay for getting your teen insurance.
Good Student Discounts Save Money on Teen Insurance
Almost every company offers a Good Student Discount if your child maintains a “B” or better grade point average. This can make a big difference in the premium you pay for getting your teen insurance. Many parents find that the privilege of getting a license is a good carrot to get their kids to put a little more effort into their schoolwork. No Good Student Discount, the child would have to pay the amount they would have saved with the discount (or even the entire premium increase for adding them to their policy).
Keep Your Teen Driver on Your Policy
Often, parents consider taking their teenager off of their policy thinking they might save money that way or might reduce the legal risk to them. First, the child cannot get their own policy until they are 18. Even once they are no longer a minor, taking them off while they are still in the household is a bad idea. This is because the child’s policy will be missing out on many discounts that they would enjoy on the parents’ policy: Multi-Car, Multi-Policy and Group (or Profession) Discounts are just some that they would miss out on. Also, if you are in a ‘preferred risk’ company, your child will enjoy those lower rates that they would not qualify for on their own.
Besides just the money, providing your teen insurance on the same policy provides better, more complete protection. For a more detailed analysis of why this is true, check out my previous article about taking your teen driver off of your auto insurance policy.
These are just some ideas about how to save money on teen drivers. Next week, we will explore more ways to save money on your car insurance with a new driver. (If you just can’t wait for Part 2, go to our Contact Us page and if you ask really nicely, I’ll send it to you early.)