Handing the keys of a car over to your teen driver can be liberating, and a bit stressful. You will no longer have to worry about shuttling your teen to school, friends' houses, or sports practices. The stress of insuring your teen driver can replace these worries as a primary concern.
Most parents think that adding a teen driver to their policy will be costly. While inexperienced teen drivers do pose a higher risk (which explains the higher premiums), there are some discounts you can take advantage of to keep your auto insurance premiums low after adding a teen driver.
1. Verify that your teen is a good student.
Insurance policies are all about managing risk. The higher the risk that your teen poses to the insurance company, the higher your monthly premiums will be. Teens that show a high level of responsibility in other aspects of life are usually more likely to extend this responsibility to their driving habits.
Good grades are one way that insurance companies can measure responsibility. Ask your insurance agent if you can provide evidence of your teen's GPA to qualify for any good student discounts available.
2. Provide your teen with additional training.
Teens are often more expensive to insure because they don't have a lot of experience behind the wheel. In an emergency situation, a teen might not have the driving experience required to make a safe decision and avoid an accident. This inexperience increases risk, which increases premiums.
Enroll your teen in a defensive driving course. The additional knowledge and experience these courses provide can help improve your teen's skills behind the wheel. Many insurance companies also offer discounts on premiums for teens who complete additional training, so talk to your insurance agent about available education courses that qualify for the discount.
3. Wait to purchase your teen a car.
Parents are often surprised to find that purchasing a teen their own car can significantly increase premiums. If a teen is listed as the primary driver on a vehicle, the insurance company assumes that the teen will spend more time behind the wheel than a teen driver sharing a vehicle with his or her parents.
More time behind the wheel provides more opportunity for an accident to occur. Share your vehicle with your teen until he or she can establish a solid driving record if you want to keep your monthly auto insurance premiums low.
After following these suggestions, get an insurance quote to find out how much you can expect to pay.
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