The time came when your teenager started driving. Possibly you are excited and stressed at the same time. However, having a teen driver at home can also be helpful, saving you multiple trips to school and trips to your child's extracurricular activities.
It is also of great benefit if a medical emergency arises or to make mandates.
The downside is the price you will pay to insure your teenager. However, the good news is that the age of 16 is actually the most expensive year, so you can expect the policy to steadily decrease each successive year.
Here are some suggestions for you to save on your teenager's auto insurance.
It groups several car insurance policies for young adults. Using the same insurance company for all your policies can really make a difference in savings. The auto insurance policy for an average 16-year-old costs $5,744. With those average savings, you could potentially lower your bill by $460 per year.Change your child's coverage during college. It's possible to reduce your auto insurance coverage if your child attends college out of town and doesn't drive a car there. In this situation, you may be able to remove your child from the policy and then add them back as a temporary driver during school vacations. Your insurance company may offer a "student away from home" discount. Requirements may vary depending on your insurance provider, but generally you must attend a school that is at least 100 miles away.Increase your deductible. Opting for a higher deductible will lower your annual auto insurance policy. The size of the savings varies depending on the insurance company and where you live. Applied to the rate for a 16-year-old driver, it is estimated that your savings could range from $517 to $919.Buy your teen a used car. The type of car your teen drives is another factor that contributes to the cost of the annual premium. Older vehicles cost less to cover.Pay your annual premium in advance. If you pay your annual premium in advance you can save 4.9% compared to paying in installments throughout the year. Let's say your teen is 18 years old and their annual premium is $4,271 on average. You could potentially save almost $210 per year by paying in advance.Check the discounts for students. There are two common types of discounts your teen may qualify for on your insurance policy. The first is a nice student discount for maintaining a GPA of 3.0 or higher. You may need to provide a transcript twice a year to continually qualify for the discount.It is worth mentioning that this type of discount and requirements may vary between each insurance company.Install a telematics device in your teen's car. A telematics device can be installed in your teen's vehicle to track their driving habits. By using one of these devices, customers experience an average savings of 3% nationwide. That's pretty hefty when you pay up to $5,000 or more in your teen's premium each year.Invest in a safer car. A car with additional safety options and higher ratings can lower your premiums. Additional safety options, such as daytime running lights, blind spot detection system and electronic stability control, may offer further discounts.Once you've identified the safest vehicles and technology, check with your agent to see if and how much they will reduce your insurance costs.
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