Teens need to be very aware of the cost of insurance before they get their first automobile. They need to understand some tricks to getting the best insurance rates available to them. While some teens pay their own insurance, others still get help from mom and dad, so parents need to learn as well.
Let the Insurance Company Track the Teens Driving Habits
While different insurance companies do it in different ways, letting the insurance company track teen driving habits will help save money on insurance premiums. Teens who can prove through the device or app that they are good drivers get to enjoy lower rates. If the parent is paying part of the insurance, then sharing the savings may be a great incentive. Your teen may also qualify for other discounts as well based upon their performance in school and in their community as well.
According to Rob Jackson Insurance, if your teen is buying their vehicle, then they will be expected to carry at minimum liability insurance as long as they are making payments. Therefore, teens should consider saving and paying cash for a vehicle as well as insurance. If the car is in the parent’s name, they may need to consider buying a general liability policy to protect them if an accident occurs.
Good Grades Save Money
Teens who get good grades usually get a break on their auto insurance. Generally, insurance companies expect your teen to carry at least a B average. Additionally, some insurance companies offer a discount if teens are involved in certain extracurricular activities. Talk to an experienced agent to explore all the possibilities.
Take Driver’s Education
Most insurance companies reduce insurance rates when your teen takes a driver’s’ education course. These courses are available online and at brick-and-mortar stores. Teens need to provide the insurance company with proof that they passed the course.
Choose the Car Carefully
The car that your teen drives makes a difference in their insurance rates. Small SUVs are the cheapest to insure. Parents adding teens to their driving policies may save money by buying a separate policy for your teen’s vehicle instead of listing them as a driver when more expensive cars are on the policy.
Following these tips can lower the cost of a teen’s car insurance. Choose the car that they will drive carefully. Get good grades and drive carefully. The result will be cheaper teen insurance rates.