Tips on How to Save Car Insurance Money as a Teen Driver
Getting your driving license is an exciting time for many teens. However, this also means that the teen needs to be insured. Teens are seen as a larger liability to insurance companies as they are new drivers with little experience and driving history. Even if your teen is a careful driver, finding good prices on auto insurance can be a challenge. Thankfully, there are ways to help your teen save money on car insurance.
[ READ MORE: What to Do if Your Vehicle was Vandalized ]
Maintain at Least a B Average in School
Believe it or not, insurance companies reward students that maintain good grades with discounted insurance rates. This could be a set amount of cash or a percentage off. Consistently maintaining at least a B average while in school is a good rule of thumb.
Don’t Drive Luxury, Performance, or New Cars
A teen driving a sedan will save much more than a teen driving a luxurious, sporty, or new car. If your teen is in a collision, the repairs will cost much more with these types of vehicles. In addition, high-end cars are a bigger target for vandalism and theft.
Consider an Umbrella Plan
Many parents choose to add their child to their insurance plan. Auto insurance companies often have multiple-vehicle discounts which can help save your teen some money. However, if your teen gets into an accident while under your plan, your premium can rise. Since there are pros and cons to this route, you should sit down and have a serious conversation with your teen about this option. If you choose to not put your teen under your own plan, we recommend shopping around multiple insurance providers for rates and comparing them.