So your teen is ready to drive, and your anxiety is completely understandable. Car insurance for teenagers can be very expensive because of their inexperience behind the wheel and their high accident rates.
The reality is that teen drivers are more likely to underestimate the severity of a situation, not accurately identify hazardous situations, and even more dangerous, not wear their seat belt.
How can you lower the cost of your car insurance premium? Although it is difficult to avoid the costs related to adding your teen driver to your car insurance, Danback has compiled a list of 5 tips to help save you money:
A. Adjust your deductible
When the time comes to add your teen driver to your insurance policy you should first call your insurance company and notify them of the additional driver. They will go over the options available to you, as well as any additional discounts. Be sure to ask about your current car insurance deductible as you might be able to increase your deductible to lower your rates.
B. Make sure they do well in school
Many insurance companies believe that good students will have a more positive risk profile as they get older and prefer to have them as long-term customers. For these students, many insurance companies give a discount to reinforce their positive habits. Talking to your teen and motivating them to do well in school will have, in most cases, an additional benefit of lower insurance premiums.
At Danback, full time students with a good academic record could be eligible for up to a 12% discount on certain coverages. (In most states, policyholders between the ages of 16 and 25, who are full-time students with a “B” average or better, are eligible for this discount.)
C. Have them drive the oldest car
If you have multiple cars you should consider which car or cars you allow your teen to drive. Newer vehicles typically cost more to insure due to the manufacturer’s suggested retail price (MSRP). In addition, the costs related to repairs for a new car are on average greater than those on an older car, and if the car is being financed the lien holder will normally require more coverage on the car. To save money, you can restrict your teen driver to the car that costs the least to insure, but check with your insurance provider to see if this is something they allow.
D. Stress the importance of safe driving
Distracted driving is any activity that could divert a person’s attention away from the primary task of driving. Texting among teens is a serious problem and a major cause of traffic incidents. Think about this:
- 40% of all American teens say they have been in a car when the driver used a cell phone in a way that put people in danger. (Pew)
- 31% of U.S. drivers ages 18-64 reported that they had read or sent text messages or email messages while driving at least once within the 30 days before they were surveyed.
- Text messaging creates a crash risk 23 times worse than driving while not distracted. (VTTI)
Learn more about distracted driving and educate your teen on the dangers at distraction.gov.
E. Communicate and educate
Most importantly, communicate with your teen driver. You should tell them how much their car insurance costs so that they can fully understand the responsibilities they have as a driver.
It is inevitable that at some point your child will be ready to get behind the wheel of a car. Instead of trying to prevent this event from taking place, encourage your teen to increase their awareness when behind the wheel, create safe driving habits, and when the time comes to insure them, simply use the tips above that we suggest. Danback Insurance Agency is here to help with your insurance needs every step of the way. (Source: Elephant.com)
Contact us today to get an Austin car insurance quote for your teen at 512-454-4567.