We all know this day is coming – the day your teenage driver finally gets their license and is burning a hole in their pocket. Of course, you always told them they could drive your car when this day comes. Still, this day arrives much sooner than expected. It can be a scary thought that your teen is now in charge of your vehicle. Even more frightening, how is this situation going to affect your insurance premiums? Luckily there are several things a parent can do to ensure cheaper insurance for their teenage driver.
Did you know that, statistically, a teenager is ten times more likely to get involved in an accident than a driver over the age of 30? This also means that the insurer is ten times more likely to pay out every year. This, of course, is a high risk to insurers, and they do not like those statistics. There is no way they will make money by paying out thousands each year for a policy that is only bringing them in a couple of thousand each year.
Hopefully, it now makes sense why insurance premiums for teenage drivers are higher than other policies. Because your teenager isn’t allowed to have his policy, your policy is the one that is going to have to increase. There isn’t another way. Therefore you will have to play by the rules. Luckily there are some things you can do to decrease your insurance premiums.
Ask your insurance agent about discounts for teenage drivers. Because you are an experienced driver, the small discounts offered when you first applied may not have meant much. Now, with your teenager also on your insurance plan, these discounts may be quite significant.
Motivate your teen. As teenagers do not have a strong driving record or credit rating, these cannot be used as a way to show how ‘responsible’ they are. Some insurers may consider using their academic record for this. If your teenager is an underachiever, this may be a good time to motivate him to spend some more time behind the books.
The thing about getting him his vehicle. Think about it; it is going to cost a lot to insure your teen behind your expensive sports car because it is going to require a lot to replace it. On the other hand, if you buy him a cheap used car to drive around with, it is not going to cost a lot to replace the vehicle.
Increase your deductibles This is a well-known method, but if you want to lower your premiums, it is worth it to increase your deductible. It works like this – you will pay less monthly if your insurer pays less after an accident. This is one of the few ways that is guaranteed to lower your premiums.
Shop around and relax! Teen car insurance doesn’t cost as much as it used to a couple of years ago. Give your teenager your keys and relax, this is the only way they are going to get good at it.