If the car your child drives is worth less than $5000, it is probably not even worth having comprehensive and collision coverage.
It can be a scary thing when your child finally gets their driver’s license. Instantly, this new world is available to them and the freedom as well responsibility that comes along with it can be immense. There will be both great positives and negatives that arise as they slowly, or quickly, begin to explore with their new found desire to get out. After all of the excitement dies down, and before they even hit the open road, there will be a few more necessary steps to take and car insurance is surely one of those.
It can be a real headache, but it doesn’t have to be. That’s where we come in. Here are ten tips on how to save money on your teenager’s insurance policy:
1. Add your child to the policy
If your teen gets their own insurance, it will most likely be sky high and if you had them to your policy, this will save both of you money. When you add them, many more discounts will suddenly become available to you, allowing you to find new savings.
2. Let the insurer track their driving
A lot of insurance companies are getting themselves more and more involved in the tech craze that is sweeping this nation, and as such, many have devices or apps that will allow them to track the driver’s habits. As it monitors what your child’s habits are, the safer their behaviors the greater the discount. You’ll even receive a discount for simply installing the small device, such as Snapshot from Progressive, or an app on your teen’s phone, like Drivewise by Allstate.
3. Keep up the grades
The good student discount is one offered at most, if not all, insurance providers, and the requirements for each are generally the same. If your teenager upholds a B-average and you provide proof of such, in the form of a transcript or report card for example, they will automatically and easily qualify for this discount.
4. Buy used This is a bit of an obvious tip, but an older car makes more sense for a first time driver, especially since they have a statistically much higher risk of crashing during this time period in their lives. If or when they do, a used car will be much cheaper to repair than a new one, and it is always cheaper to insure an older car than a new one. However, when purchasing a used car do make sure that the car has all the necessary safety features and is reliable. If that means having a mechanic check it out beforehand, so be it. There is no chance in putting your child at risk or endangering their lives because you bought a car that has, for example, bad breaks.
5. Tell the insurer when they’re off to college
The majority of people on college campuses do not have cars, so if they go to college (and it’s at least 100 miles away) make sure to tell your provider. If you can provide proof of this, they will still be insured, but your rates will drop dramatically as a result of them being away during the semesters.
6. Increase your liability insurance
Increasing your liability on your insurance is of great importance at this time, and in fact, is not only a way to save money but also to ensure the safety of your child’s life, as well as your own. In the event of an accident that would requires you to pay out more than you can afford and more than the insurance covers, anything you own is considered fair game. You could potentially lose your house or your car, so it is important to do this as soon as possible.
7. Re-evaluate your collision and comprehensive coverages
If the car your child drives is worth less than $5000, it is probably not even worth having comprehensive and collision coverage. If the car is more expensive, we advise that you increase your deductible to $1000 - $2000 which will significantly lower your premiums. Just be sure that you have the money to pay out of pocket if something does happen, but you can rest assured that you have saved money while remaining safe.
8. Enroll in safe driving programs
Taking a driver’s education course can not only reinforce the importance of road safety while driving, it also comes with the added bonus of providing you with discounted premiums.
9. Make yourself aware, and take advantage of all discounts applicable
There are many discounts that arise, if you add your child to your policy, such as the ones mentioned earlier. The multi-car, good driver, multi-policy, and safe vehicle discounts are just a few. To get a more complete and accurate picture of what exactly you can qualify for, just spend 2 minutes on Ensurify, you may be able to save up to 50% off your policy.
10. Shop around
As with anything, shopping around is your best bet. Some insurance companies offer fantastic deals for young drivers. For this reason, not settling on the first quote you find is very important. It’s best to keep your options open until you can find the right policy for you. Getting your quotes on Insurify
gives you a quick and simple apples to apples comparison of real time and accurate quotes from dozens of providers virtually instantly. It is simple, easy and saves you money, why wait!
Check out this article for 10 Ways to Save on Your Teen’s Insurance Policy.