Young People on the Streets
Teenagers typically start driver’s training at age 15 or 16, and when they have successfully completed that class, they are eligible to take the exam for their driver’s license. Since young drivers are inexperienced in driving and run the highest risk in driving, their auto insurance is the highest of all drivers up to the age of 70. Finding and getting insurance for teenagers means some searching.
Often parents add the new driver to their main policy with their current car insurance company hoping that this will be the least expensive option. According to reports when teen drivers are added to the family policy, it raises the premium by 44 percent, with one additional car, 58 percent for two cars and 62 percent if you are adding two teen drivers to cover onto an existing policy. This means the coverage usually remains the same as the original car, but can be adjusted.
Now that you are aware of the high cost to cover teenage insurance, the secret is to search and compare for insurance for your new young driver. With the help of these tips you should be able to find the cheapest car insurance for your teenagers. Here are seven tips that offer discounts on your policies.
1. Most insurance providers offer a “good student discount” for those students who have a 3.0 GPA. Most companies offer this discount even through college, if the student is using the same home address.
2. Large SUV’s, sports cars and luxury autos are expensive to insure, so get your teen an economical, safe car. USAA recommends these safe vehicles, Chevrolet, Honda Hybrid, Dodge Charger and Ford Mustang, Hyundai Elantra, and the Toyota Camry Hybrid.
3. Compare a variety of companies for the best quote.
4. Some insurance providers offer discounts for group membership, such as your company, Girl Scouts, Boy Scouts or other civic organizations. Always ask.
5. Ask the company about a discount for successful completion of their Driver’s Course or for taking the state defensive driver’s course.
6. Some carriers offer a five percent discount when parents and teens have a contract between them that states time to be home, number of friends in the car, no cell phone usage while driving and more.
7. Premiums can be lowered by raising the deductible from $250 to $1000. Keep in mind that your teenager is more apt to have an accident, so you may end up needing to pay that amount when you make a claim.
States Legal Requirements
Insurance is regulated through each state, so the legal minimum liability requirements and discounts may vary from state to state. Compare insurance within your state for the minimum coverage permitted for your vehicle, and always check to see if they “stack” discounts to get the most value. Most companies will allow you up to 25 percent total discounts. When teenage drivers gain experience over the next few years, they will soon be able to purchase insurance at lower rates. The best tip for them is to drive safely and avoid tickets or an accident so they can get cheap auto insurance in the future.