How to Save Money When Insuring a Teen Driver

There’s no doubt – insuring a new driver can be costly. New drivers, particularly young drivers, need years to learn to avoid simple mistakes on the road. In fact, statistics show teenage drivers have more accidents than any other age groups.

And unfortunately, those accidents tend to be more severe and involve more injuries. Because of this, it costs more to insure teen drivers – especially boys, who statistically have more car accidents than girls.

But you can lower your costs with these 7 tips:

1. Insure your teen on your policy. It's usually cheaper than if they purchase their own.
2. Encourage them to get good grades. Most companies offer discounts if single, full-time students under age 25 maintain at least a "B" average or are in the top 20% of their class. 
3. Have them take a driving course such as Behind the Wheel. Most companies will give discounts for completion of such courses.
4. Choose their vehicle wisely. The type of car your teen drives dramatically affects their insurance costs. Check out this article for the top 7 cars for teen drivers. You can also reduce the coverage on an older vehicle from full coverage to liability only. If your car is damaged, you would not have coverage to repair it, but you would have coverage for damage or injuries to others.
5. Teach them to build a good driving record. Accidents occur each year because a teen driver was using a cell phone, playing the radio or talking to friends in the backseat. Teach your teen to minimize distractions while driving and only drive when alert. (Make sure to lead by example and be a good role model when you drive!) Insurance rates will eventually drop if your teen maintains a good driving record.
Note: Some states have reduced teen accidents by restricting the amount of time new drivers may be on the road without supervision. Consider implementing a similar policy with your own teenagers.
6. Increase the deductibles on your vehicles. You'll save money and reduce the small claims that can hurt your premium over time.
7. Sign up for automatic billing. Some companies offer a discount if you set up automatic billing from a checking or savings account and go paperless.

As soon as your teen starts driving, give us a call at 800-369-2501 or request a quote online, so we can help you take advantage of every discount opportunity possible and make sure you have the coverage you need to protect the driver – and your assets from a claim lawsuit. Read this article to learn about the types of coverage new drivers need.

Sources included Independent Insurance Agents of America.