A large number of people hunt for car insurance for teenagers. Although insurance coverage is usually available, the excessively high rates for this coverage are difficult for most families to afford.
Teen automobile insurance rates vary in each state and city, with an average cost in America of about $3,500 annually. An alternate way to guesstimate teenager insurance rates in your region would be to take the annual premiums on the parents’ policy and increase them by a multiple of 2.5 to 3. The result will be close enough to generate an idea of the cost you are on the verge of incurring.
4 Ways to Save Money on Car Insurance for Teenagers:
Due to the fact that car insurance costs for teens will surely affect household finances, finding discounts and cost-saving measures is important. Check out these 4 money-saving strategies:
1. Choose a car that insurance companies like. Your teen is unfortunately considered in the highest risk category. Try to reduce your rates by avoiding certain types of vehicles. Don’t let the teen drive, or be assigned to luxury vehicles, small light cars, any vehicle with a high-performance engine, or big sports utility vehicles – SUVs carry increased rollover risks for inexperienced teenagers and are more difficult to drive in tighter spaces. Some parents actually save money by just purchasing an older middle of the road car or truck just for the teen. If this car is paid off, collision and comprehensive coverage can be eliminated or reduced. Deductibles can also be raised to save money. Another tip for selecting the right car or truck is to search online for most stolen vehicles in your area – then avoid these, since insurance companies charge more.
2. Take a driver’s training class. There are usually insurance discounts available if the teenage driver takes a defensive driver course. This can even be done before applying, and insurance providers often issue an immediate discount. Another strategy involving teenager driving education includes the need for strong parental involvement in the training process. Positive coaching and feedback, along with spending consistent time with the teen go a long way toward the development of a safer, more confident young driver.
3. Sometimes the best option for car insurance for teenagers is to include them on the family insurance plan. This often saves money versus an individual policy, but shopping and comparing online to make sure it can be a smart approach. There are discounts offered by most insurance providers for maintaining multiple cars on one policy, and for ensuring multiple lines such as homeowners along with the autos.
4. A Good Student Discount can also save money. Most insurers offer a 10 – 15% discount for students earning at least a 3.0 GPA, or B average. This can add up. Also, if your teenager is in college away from home and doesn’t take a car to school, a discount is available called Distant Student Discount and may be offered by your insurer.
Saving money on car insurance for teenagers takes some work, but during the several year periods, until rates drop to a standard level, the financial benefits can be substantial.