Most parents dread the day their teens take to the road: high insurance rates combined with natural concern for your new driver do little to alleviate the suffering. Fortunately, you can reduce high insurance premiums while keeping the entire family safe with these rules for the road:
Ask about Good Grades and Other Discounts
Honor students and those who invest in driver education classes can instantly cut 10% to 20% from their annual premiums.
Consider Buying a Clunker Rather Than Loaning the Family Car
One of the main causes of increased car insurance is allowing your teen to borrow the family car. Rather than risk the wreck of an expensive vehicle, carefully weigh the savings of buying a safe but inexpensive car for your teen instead. The independence and insurance savings often more than compensate for the initial outlay.
Calculate the Total Cost
Having a teen driver in the home impacts the family finances in more than one way: professionals and small business owners may be especially vulnerable to increased liability in the event your teen is involved in an accident.
Remember, even though your teen may not own a lot, it is a mistake to scrimp on liability coverage. Most lawsuits will not seek damages from the teen; they’ll go after the family. Don’t risk your family’s financial future – increase the liability portion of your insurance prior to handing over the keys.
Go It Alone
Sometimes it makes more sense for teen drivers to go-it-alone and purchase an independent insurance policy, especially once they leave for college.
Different cities,vehicles, and other demographic data impact auto insurance premiums. Always obtain quotes as part of the family plan and as a stand-alone policy to determine which is the best option.