When teenagers get their first driver’s license, parents usually have several different feelings warring within them. They are proud of their fledglings’ abilities, excited about an extra driver in the family to help with errands, and apprehensive about whether their child is responsible enough to handle the huge responsibility of safe driving.
Additionally, many are worried about the additional burden that insurance for a teen driver will put on the family budget. This may be one of the easiest worries to resolve. The following suggestions should ensure that parents get the lowest rates available for their beginner driver:
Start Preparing Early
Many of the best ways to save money on insurance for a teenager must be considered in advance. For example, if your teen is to have a chance for a discount because they have completed a driver’s education course, the time for enrollment is during the year before they are eligible for licensing. Other good planning strategies include the following:
• Before buying that first car, carefully peruse all of the safety ratings and insist that your teen pick a vehicle with a great rating.
• During the year before a teen is able to get a driver’s license, warn your child that grades matter and help them with school work as much as possible to get the Honor Roll discount offered by many companies.
• Check with the current insurance companies and see if they offer discounts for bundling all of your insurance needs or for multi-car families.
• Go online and compare the policies offered by each company so that you are knowledgeable about prices and know what is reasonable.
By considering all of these tips early in the insurance buying process, you will be in a better position to get the best deal.
Use Common Sense
Parents should know the value of the vehicle that their teen will be driving most, and this is the vehicle on which they should be listed for insurance purposes. The following tips should keep the price of insurance coverage as low as possible:
• Do not pay for full coverage on an older car; just make sure that you have enough liability to protect the family from lawsuits.
• Raise the deductibles on family cars and put back a little extra in savings to pay them if an accident should occur.
• Ask each insurer for any hidden discounts that his company offers that might apply to your family.
• Review all insurance coverage yearly and ask for a reduction in rates as your teen ages and proves to be a responsible driver.
Teenage driving insurance will always be higher in the beginning, but the longer your child remains accident free, the more reasonable your rates will become. Until then, these ideas should help you to get the best rates on the market.
This is a guest post from Jane Simpson, who writes for a car finance calculator website. She believes it is possible to save money on car insurance for a teen by planning ahead and doing careful research to find the best deal.