Comparing insurance companies for your teenage driver
Finding car insurance coverage for your teen driver can be a stressful task. For the years prior to your teen earning their license, you’ve heard that the cost of insuring your teenager can be astronomical. Insuring teen drivers can be quite expensive but there are ways to save money if you know where to look. Here’s how to compare insurance companies:
1. Get Several Quotes
Remember: just because you have insurance now doesn’t mean that you have to stick with your current company. Get online and look at several insurance companies and use their free quote features. You may find that one company is significantly cheaper than another, for the exact same coverage.
Many insurance companies offer discounts for teen drivers. The good student discount is by far the most popular. If your child is in high school or college and is maintaining a B average, you can expect to save anywhere between ten and 20 percent on your premiums.
Some insurance companies also offer discounts for any driver’s classes that have been taken beyond basic driver’s ed. Look for insurance companies that offer discounts for defensive driving courses and sign your child up. Not only will you save on your insurance premiums, but you can feel better knowing that your child is as prepared as possible for the responsibility of the road.
3. Which Car?
Talk to your insurance agent before you add a teen driver to your policy. Find out if your current company will assign drivers to specific cars. You may own one vehicle on which you can insure your child relatively inexpensively and another that will send your premiums through the roof. Be warned though: not all insurance companies will allow you to assign a driver to a car.
4. New Car
If you are considering purchasing a new or used car for your teenager, talk to your insurance agent first. Some cars are very expensive to insure and others are quite reasonable. You can expect to find the most cost-effective to insure cars in the mid-size, family sedan range. It might not make your teenager look “cool”, but it will save you from spending a hefty chunk of your salary to insure them.
5. Consider Lowering Coverage
You never want to skimp on coverage for the vehicle that your teen will drive, but you may be able to lower coverage on a vehicle that they will not have access to. Consider lowering your coverage on any vehicles that are paid off and that only mom and dad will be driving. This isn’t going to lower the cost of insuring your teen, per se, but it can help make up the difference.
Don’t procrastinate when it comes to insuring your teen driver; should he or she be involved in an accident, your insurance company may or may not cover them. If they do cover them, they may raise your premiums retroactively. With the proper amount of research, it is possible to insure your teen driver without going broke.
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