Many parents cringe when they think about buying car insurance for their teenage son or daughter. After all, it’s well known that auto coverage is particularly high for those under 25. But that doesn’t mean you can’t find affordable teen and young adult insurance. Here are some tips to help reduce the cost:
1. Look for well rated discounts.
Some insurance companies will offer discounts for students who maintain a certain grade point average (GPA). Generally, the benchmark is a 3.0 or B average. In addition to helping you save money, it’s also a great incentive for your child to maintain good grades. Basically, saving money on car insurance could allow you to buy a better car for your son or daughter. It may even require you to maintain a B average to retain driving privileges.
2. Shop online.
As with other types of insurance, you can usually find great deals if you shop online. This will allow you to collect and compare quotes faster. In particular, look for companies that specialize in auto insurance for young drivers. Also, make sure the quotes you get are applicable to your son or daughter.
3. Buy your teen a used car.
It doesn’t have to be a lemon (which you probably shouldn’t be buying anyway for safety reasons), but simply buying a used car can help you save a small fortune on your teen’s insurance. The concept is very simple: repairing new cars is significantly more expensive than repairing used cars. Buying a low mileage vehicle that is only a couple of years old can help you save a lot of money on your son or daughter’s car insurance.
4. Enroll your teen in a driver’s education course.
Research shows that teens who complete such courses tend to be safer drivers. You can find these courses at driving schools, while many high schools offer them as well. The benefit of such programs is that they tend to be more comprehensive than learning to drive through informal lessons.
5. Include your child in your insurance policy.
If your child will be driving your car, you can add them to your policy as a secondary driver. This is an ideal situation for new drivers, as they probably won’t be driving much anyway. Be sure to let your insurance company know that your teen will only be driving the vehicle for a limited period of time (of course, then you have to stick to it). This is a more affordable alternative to getting a separate policy for your son or daughter.
6. Look for a higher deductible.
This will help significantly lower your child’s car insurance premium. While that’s a good thing, keep in mind that your out-of-pocket costs would be higher if your son or daughter were in a car accident. So you should definitely take this approach with caution.
By following these steps, you can get car insurance for your teen that is not only good, but also affordable. While auto insurance tends to be higher for young drivers, it doesn’t have to be sky high!