Buying Auto Insurance for Teen Drivers | Core Benefits Group

Posted on: Thursday, June 13, 2013

Few rites of passage in today’s world can match the day a teen finally earns a driver’s license. Like graduating high school and landing that first job, having a driver’s license means that someone has taken a big step toward independence and adulthood. It is a proud event for the teen, and an often terrifying one for the parent. Yes, they grow up too fast, but that’s not the half of it. News flash: it can also be expensive.

Sadly, statistics show that teenagers are involved in more accidents, and are responsible for more traffic violations, than any other age group. Naturally, this means that even the most reliable, well-behaved, and mature teen is going to be grouped with his or her peers when it comes to buying auto insurance. This doesn’t mean that you, as a parent, need to lock the keys away for five years. Higher rates, however inevitable, can be reduced by taking a few simple steps.

Raise your deductibles

This is a sure way to lower your rates. Be sure to have enough set aside for any minor fender benders, however.

Get an older, reliable car

Ideally, you want your child to drive a car which will reduce those insurance payments. An older model sedan with a good reputation for safety is your wisest purchase, even though they will beg you for the Mustang.

Get good grades

Most insurers lower costs for good students. Suddenly, that A in Geometry looks better!

Drop collision and comprehensive on old models

 If you have a vehicle that isn’t worth much more than the deductible, you may be paying too much on premiums, even if the car is totaled. Whatever you do, don’t drop your liability coverage, however.

Talk with your agent

Explore money saving options with your agent. Do you have an accident-free record? Do you pay your premiums in full? There are probably several discount possibilities available.

Remember when you first got your license? It was a big deal, and you couldn’t wait for that moment when the keys were in your hands and you were heading out the door to drive alone for the first time. This is a big deal for you, too, in many ways, but it doesn’t also have to be a financial burden.

 All the same, make sure they get home early.

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