09 Apr 6 Ways to Cut Insurance Costs for Teen Drivers – Part 1
1) You get a proud and warm feeling from
seeing your child gaining independence
2) Your get a huge increase in your auto
According to research cited by CBS News, adding a teen to an auto insurance policy can increase rates by a whopping 44 to 62 percent (but getting him or her an individual policy usually costs even more).
This is because most insurance companies consider teenage drivers high-risk drivers, and high risks mean spiked coverage costs. Thankfully, though, you can do something about this.
When your son or daughter turns sixteen and gets behind the wheel, keep these six top tips in mind:
- Driver Training. Much like the link between good study habits and good students, there is a strong link between safe driving habits and safe drivers. Driver’s Ed is a good start, but it ONLY teaches your child to physically operate a vehicle. It DOES NOT teach new drivers how to drive safely.
FACT: 1 in 10 crashes are caused by physical error. 9 out of 10 are caused by MENTAL error. We recommend that you enroll your new driver in a state-approved Defensive Driving course (go to www.nsc.org to look for a local National Safety Council training center). Many states also allow you to take it online instead of in a classroom.
- Ask about Discounts. Depending on where you live, you will save 5-10% for 3 years for each driver that completes the Defensive Driving course mentioned above. (Contact your insurance company and ask about the laws in your state.)
Some insurance providers offer rate incentives for teens that maintain certain grade point average. “While it varies from one insurance provider to the next, you might be eligible (or be able to negotiate) a five to 10 percent discount for teens who maintain a B average, or a 3.0 grade point average on a 4.0 scale,” says Ed Grabianowski at “How Stuff Works.”
- Shop Around. There are plenty of car insurance companies out there today, so there’s no reason not to compare rates between various providers. Even if you’ve been with your current insurance company for decades, take some time to see what potential savings may be available with similar providers. By comparing a handful of options side by side, you may be surprised to find lower prices on the same coverage elsewhere.
Come back next week for the 2nd part of this article on how to save $$$ on your auto insurance and keep your teen driver safe.
Kimberly Quinones is the Vice President of Midwest Sales for Access Indiana auto insurance. She oversees all aspects of sales, service and customer retention programs. Kim is a proactive leader and is deeply focused on the issue of driver safety. She and her team oversee all aspects of sales, service and customer retention programs for the organization.