Teen Guide To Car Ownership: How To Save Money On Auto Insurance

Nothing causes parents more anxiety than their teenager sliding behind the wheel. They are aware that their adolescent child is still very immature and inexperienced. With that said, young drivers are more at risk of getting into an accident. That is the reason why it is very important for teen drivers to have auto insurance.

The car insurance rates for young drivers- anyone who is younger than 25, are higher. This may seem unfair but statistics have proven that teenagers, such as yourself, are more likely to get involved in accidents and get more traffic tickets than other age group. But just because insurance providers offer higher rates doesn’t always mean that you and you parents can’t find ways to save money. Here are a few money saving tips for obtaining auto insurance.

Car Insurance Tips For Teens

If you want to help your parents save money on your auto insurance, here are a few tips:

  • Get good grades. This is the easiest way you can help your parents. You need to understand that there are some insurance providers that offer good student discounts. This discount is given to young drivers who are able to get a certain grade point average. Typically, the discount may range between 10% and 15%. To enjoy this discount, you will need to rank in the upper 20% of your class, or you must get a 3.0 average.
  • Get driver’s education. Your state may or may not require you to enroll in driver’s education; however, many insurance providers offer discounts for teenagers who completed a driver’s education course.
  • Get a decent car. Do not go for fancy, newer, and flashy cars since they are more expensive to insure. You can consider getting an older model but with enough safety features.

You can also get an auto insurance policy on your own; however, this option is much more expensive and complicated. For one, you must be 18 years and above to qualify for this option. If you are young than 18, you will need your parent’s signature to get a policy under your own name. Even if your parents are willing to sign the policy, it is usually much cheaper if you are added to your parent’s auto insurance policy instead.

How Parents Can Save On Car Insurance

Your parents must not assume that they will be able to save more money if they get a separate policy for you. They must be aware of the possibility that you might end up paying more than they would if they added you to their policy. In addition, their good record with the insurance provider can play a huge role in getting a better rate for you.

It is also important to understand the factors that may affect your insurance rates. These factors may include:

  • Your location
  • The type and model of car you own
  • The car safety features
  • How much you will drive

To save more money, here’s what your parents can do:

  • Shop around and look for the best rates. They can also inquire about multiple vehicle auto insurance discounts. This means that adding another car to their policy might earn them a discount.
  • Give you a decent car. This means that you must drive a vehicle with enough safety features. You can always upgrade when you’re older.
  • Increase their deductible since this can lower their rate. You can help your parents pay for the higher deductible by setting aside a certain amount of money.
  • Ask their insurance agent if they can add you on their policy as an “occasional” driver because listing you as a primary driver will only cost more.

Kris Bennette recently added her son to her Lincoln auto insurance policy. She now enjoys peace of mind knowing that her son and his vehicle are covered by her policy.

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