Letting Your Teen Drive: 4 Money-Saving Tips For Auto Insurance

Posted on: 25 June 2015

It is no secret that children are expensive. Even though you are used to spending money on your child, you may be surprised by how expensive it is when your teen starts driving. The cost of a vehicle, gas, and auto insurance really add up—even if they are helping to pay for it. Fortunately, you can save some cash while still giving your child what they want: their driver's license and a car.

Here are four money-saving tips for auto insurance for teen drivers.

1. Take Advantage of Teen Driver Discounts

Most auto insurance companies offer various discounts, and some of them are designed specifically for teen drivers. Two most common teen discounts are for low miles and good grades. You may also be able to get a discount for enrolling your teen in a safe driving class or driver's education.

Some auto insurance companies also offer discounts for "distant" drivers. If your teen is away at college and isn't driving, tell your insurance company. You may be able to get a cheaper rate while they are away.  

If you want to save some cash, talk to your insurance company about these discounts and utilize them.

2. Add Your Teen to Your Insurance

Many parents simply get their teen their own separate insurance policy. While it's perfectly acceptable to do so, it's often more expensive. Instead of getting your teen their own insurance policy, add them to yours. It's a simple tactic, but it's one that is usually more cost effective.

3. Give Your Teen an Older Car

Teens are more expensive to insure because they are more likely to get into an accident. According to the Centers for Disease Control, teens account for nearly 30 percent of all auto accidents—that is a lot of accidents. To save money on their insurance, get them a car that is on the older side. Just make sure it has good safety ratings. An older, safer, car may not be what they want, but it will be cheaper to insure—and cheaper to fix should your teen get into an accident.

4. Utilize Other Discounts

Finally, consider utilizing other discounts that may be available to you. Auto insurance providers typically have a wide of discounts for both teens and adults. Some more common discounts include multiple car, bundling, good driver, and safe vehicle. To save money, ask your insurance company about what discounts they have available and enroll in them.

Letting your teen drive may be scary and somewhat expensive, but you can save money by utilizing these tips. As for the scary part, you will just have to trust that your teen will drive safely and do the right thing. To find out more, speak with a business like Estabrook & Chamberlain Insurance Inc.

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