For most teenagers, passing their driver’s license test feels like pulling onto a wide open road full of possibilities. For most parents though, the day your child becomes a licensed driver is a bittersweet event. While it is nice to feel less like a taxi driver, your worry for your child’s safety goes through the roof—and your insurance rates go along for the ride. Since inexperienced drivers are statistically more likely to get into accidents, most insurance companies jack up their rates accordingly. Fortunately, there are a few things you can do to bring these costs back down.
1. Teen-Oriented Discounts
Even though many insurance companies increase their rates for young drivers, some offer lowered rates as incentives for heightened responsibility. For example, some insurance companies offer discounts to teens who have completed a driving safety course. Others offer discounts to young drivers who have good GPAs, usually a B average or higher. Even before your child takes his or her driver’s license test, you should find out what discounts he or she may be eligible for so that you can make use of them.
2. Shop Around
The addition of a new driver to your family fleet could be all the reason you need to reevaluate how happy you are with your current auto insurance plan. There might be a better deal out there that you are not getting right now. Most major insurance companies offer online quote estimators, so you can compare the rates and coverage of several companies at once. You might find that a company you had previously overlooked offers the best rates once you have a teen driver on board.
You can get a lot of information using insurance company websites, but they cannot answer all of your questions. If you would prefer a more personalized experience, look up insurance offices in your local area. This way, you can speak with an agent directly to learn more about the plans that his or her agency offers. A local agent could also be more attuned to any insurance needs specific to your town or state that you might not have previously considered.
3. Safety Devices
This next savings tip is brought to you by modern technology! Over the past several years, a few different driving tracking devices have hit the market. These small devices are installed in cars and allow parents to remotely monitor their teens’ speeds, braking, and locations. Different models vary in complexity and in how they operate, but they all serve their intended purpose well enough. Aside from giving you peace of mind, tracking devices can also save you money on car insurance. Some companies offer lower rates in exchange for records of safe driving collected by these devices.
Breathe (Slightly) Easier
By following one or all of these tips, you can save a little (or a lot) of money on your teen’s car insurance. If you are getting a better insurance deal, you might feel better about handing over the keys. Your worry about your child’s safety on the road might never go away, but it does not have to be exacerbated by watching your bank account dwindle. So get to looking for those bargains so you can start spending, and worrying, a little bit less.