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Car Insurance For Teenagers

For people who have children taking over the driver’s seat, it is not uncommon to become concerned with how adding a teenager to an insurance policy will affect its rates. Truth is, parents should prepare themselves for their rates to increase; however, to keep the costs in check, they can check out the following tips.

1) Increase Deductibles

By increasing deductible amounts to at least $1,000, a person can save him or herself a considerable amount of money on monthly auto insurance rates. By raising the deductible, a person can also lower his or her tendency to file a small claim, which further helps to keep insurance rates to a minimum. It is always best to have money set aside to cover a deductible in the event that an accident were to occur.

2) Identify the Car’s Value

If a car is not worth much money, it is probably best to drop comprehensive coverage on it. Most certainly, a person should not be paying for full coverage on the vehicle. When it comes to identifying the value of a teen’s car, check out its Kelly Blue Book value.

3) Buy a Safe Car

It is important to make sure that a teen is driving a safe car. This not only helps parents to sleep better at night but it also helps in keeping insurance rates to a minimum. The Insurance Institute for Highway Safety website allows people to check safety ratings on the vehicle that a teen is driving.

4) Encourage Great Academics

Many insurance agencies provide some type of discount to students who maintain good academics. Even after the teen graduates from high school and enters into college, he or she can usually qualify for a discount as long as he or she is taking 12 hours worth of college credits.

5) Understand the Coverage

When it comes to insuring a teen on an automobile, it is very important to understand the ins-and-outs of the policy. For example, if a child moves over 100 miles away to go to college and does not take an automobile with him or her, there are insurance policies that will provide deep discounts for this. Even more advantageous is that when the child comes home during summertime and school breaks, he or she is still covered.

6) Include an Umbrella Policy

Most insurance agencies will give a discount for adding an umbrella policy to a traditional policy. An umbrella policy will provide extra liability coverage, which can be very valuable if a young adult is driving an automobile. In addition, this helps a person to qualify for a discount for keeping his or her insurance policy, the teen’s policy and a home insurance policy with the same company.

There are many other types of discounts that insurance agencies make available to teenage drivers. The best way to go about finding out about this discounts is to ask an insurance agency about the types it provides as well as the requirements to qualify for them.

7) Compare Quotes

One of the best things a person can do to save money on child’s auto insurance policy is to shop around for quotes. Some insurance agencies are horrible when it comes to providing reasonable rates on teen’s insurance premiums; however, some work well with young drivers.

Summary

Just because an insurance company can save a person a couple of dollars on insurance premiums does not necessarily mean the person should switch to it. For example, if a person has had auto insurance with the same company for 20 years, it is probably best to stick with the company even if a teen’s auto rates are a little bit more expensive than with other companies’; this is because the company will be more likely to not drop the policyholder or the teen teen if an accident were to occur.

Never should a person lower liability coverage in an attempt to lower monthly auto insurances premiums. It is a proven fact that teenagers are more likely to be at fault in an auto accident than older adults, and if a teen has a wreck, a person would not want to be liable for thousands of dollars worth of damages and injury expenses.