The time has come for your baby to get behind the wheel of a car. While your baby is truly no longer an actual baby, he or she might as well be. You might find yourself thinking Who ever thought it was a good idea to put a 16-year-old in control of 3,000 pounds of metal?The minute your teen gets their mitts on a learner’s permit, it is time to crunch the numbers. Having a child is expensive, but having a teenage driver in the house can cause your monthly budget to skyrocket. It is time, my friend, to start looking for teenage auto insurance.
Unfortunately, teenage auto insurance is more expensive than other auto insurance. Due to the reckless nature of teens, overall newness of driving, and being easily distracted, teenage drivers are a risk. A risk to themselves, to others on the roads and a financial risk to insurance agencies. According to the Center for Disease Control (CDC), more than 30 percent of auto accidents are caused by teens (15-19). While that might seem small, think about this: teens ages 15 to 19 only account for 14 percent of the population. There is a good reason parents and auto insurance agencies are concerned. Teens are a risk.
If this is not enough to make you hide your keys from your teen, here are 5 ways you can save on teenage auto insurance.
1. Shop around. Just like buying a car, it pays off to shop around. Compare teenage auto insurance rates online, as well as talking to local insurance agency offices.
2. It pays to be loyal to your insurance agency. Often times teenage drivers can get a discount by getting insurance from the same company as mom and dad. Insurance agencies love to give discounts on family plans. The more people and cars you include, the bigger discount you will see. Which equals to instant cash in your pocket.
3. Choose the right car to insure. The worst way to save on auto insurance for teenagers is to give your teen keys to a Land Rover at their sweet sixteen party. Insuring a new luxury car would be expensive for an adult, but the prices skyrocket for a teen. Remember how teens are seen as a risk? Insurance agencies weigh out how much the driver will potentially cost them if he or she was in an accident. Since teens are more likely to be involved in an accident, the cost soars. Add in the cost to insure a $60,000 plus car and you are looking at a hefty bill.
4. Inspire your teen to be a safe driver. Many auto insurance agencies offer discounts to safe drivers. Go a year without any accidents or traffic tickets and you can find yourself scoring a cheaper monthly premium or an end of the year bonus.
5. Don’t pay for insurance. Driving a car comes with responsibility, and part of that responsibility could be having your teen pay for his own insurance. Welcome to the real world, kid.