Teenage drivers are considered high-risk for car insurance companies. This means that the cost of insuring a teen driver is higher than it would be for an experienced adult driver. That doesn’t mean that you have to pay an arm and a leg on your monthly bill, however.
There are several ways you can save money on your car insurance if you’re under 25 years old. Read below to find out how to save on your teenager’s insurance.
Most Teenage Drivers are Eligible For a Discount
Most car insurance companies offer insurance discounts to young drivers. The amount and type of discount varies by insurance provider and state, but you may be eligible for one or more insurance discounts simply by applying for them.
Some insurance discounts are automatic, meaning they’re available to every driver who meets certain criteria – like being a member of an auto club or having taken a defensive driving course.
Other discounts require that you apply for them directly through your insurer before purchasing coverage. One name for this type of incentive is “bundling.”
Finally, some incentives to these courses are only available if you’re under 25 years old. Your insurance company may have other options for you to consider when you’re a teenager. These insurance discounts include:
- Good student discount: Many insurance providers offer a discount if a teenage driver maintains at least a B average in school. A reduced rate based on academic performance in high school or college usually requires proof from an educational institution in the form of transcripts or test scores. Read more below.
- Graduated licensing program discount: A reduction in premium if your teen has completed driving school with their parent(s) present.
- Vehicle Safety Features for rate adjustments such as a car alarm system, LoJack system, and other features like side airbags, anti-lock brakes, electronic lane assist technology, and possibly others. You just have to ask.
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Car Insurance Companies Offer A Variety Of Other Discounts
It is important to shop around for car insurance. Car insurance companies offer a variety of discounts, so you can save money on your premiums. For instance, there are discounts for a good driving record (i.e., you have not been involved in any accidents or received any tickets). Other common discounts include:
- Driver age: the older and more experienced drivers are, the less likely they are to get into accidents and cause damage or injuries in an accident.
- Driving distance: the less distance from home you drive every day, the better off financially it will be for you because this means fewer miles driven per year! Insurance companies will discount your rate for less usage.
How Much Your Premium Will Cost Depends On Your Experience Behind The Wheel And State Regulations
The amount you pay for your car insurance depends on the state where you live and your driving history. Some states have more lenient laws than others, which can affect how much a teenage driver pays in premiums. Additionally, if a teen has been driving for a while and has an accident-free record, they may be eligible for discounts on their premiums.
The average annual cost of insuring a teen driver is between $1,000 – $2,500 per year depending on factors like age and gender as well as location. Some states require higher minimum coverage amounts than others. In that case, even though one state might offer cheaper rates overall than another state, it could still end up costing more due to having higher minimum requirements set by law.
With Good Grades In School, You May Qualify For A Discount
When you have good grades in school, your insurance provider may give you a discount on your car insurance. This is true for most companies. It’s because they consider good grades to be a sign of responsibility and maturity. The higher the grade point average, the better chance you’ll have at saving money on car insurance in the future.
Idea for Parents: If this sounds like something that would interest or motivate your teenage driver, consider talking with them about setting up an incentive system where they get points for completing homework assignments with improved grades. You can offer them another reward for achieving goals while you get a discount on your car insurance plan. Everybody wins! Parents can even encourage their teenagers to start setting aside money from their allowance each week so that once they reach a certain amount, they can use those savings toward buying their first car.
Your Teenager’s Car May Qualify For Discounts If It Has Safety Features Like Airbags And Antilock Brakes (ABS).
If your teenager’s vehicle has airbags and antilock brakes (ABS), it may qualify for insurance discounts.
- Airbags: If the vehicle has been equipped with at least two frontal airbags in addition to the standard driver’s side airbag, then your car insurance provider may apply a discount to your insurance rate.
- ABS: If the vehicle has an anti-lock braking system installed on all wheels, discount rates can be applied as well. Be sure to ask your representative.
Ahead of purchasing a vehicle, contact your car insurance company to see if they offer insurance discounts for any other types of vehicle features.
The first cars for teenagers are usually low-cost to insure, compared to newer or more expensive vehicles. The first car is usually a small sedan, which is cheaper to insure than a sports car or a truck.
For instance, a teenager may buy an SUV after getting their driver’s license; this type of vehicle will cost more money for insurance than a sedan would have cost. Be sure to take these factors into account when buying a first car.
There are many ways to save money on car insurance as a teen driver. If you’re a teen driver, it’s important to shop around for car insurance. You can get quotes from different companies and compare them so that you know what kind of coverage is available or discounts. You just have to ask!
The best way to save money on your premiums is by getting good grades in school and driving safely. Even if those aren’t options right now (maybe because of an accident or tickets), be sure to ask your insurance company how you might save in the future.
Safe driving out there!