Teen car insurance
As a parent or guardian of a teenage driver, you know that it's essential to have good teen car insurance to protect them. While it may be an additional expense for your family, it's worth it to know that your young driver is protected in case of an accident. Whether you're paying for the insurance yourself or your teen is working hard to foot the bill, it's important to have this coverage in place.
If you're a young driver, you may be wondering how you can find the cheap car insurance that won't break the bank. Here are some tips to help you get started.
Discounts and savings for teenage car insurance
As a teen driver, you may be able to qualify for discounts from insurance companies that can help lower the cost of your car insurance. Read on to find out more about the discounts that are available.
Good student discounts
As a responsible student, you're more likely to be a responsible driver. If you can maintain a B average or better in school, you may qualify for a good student discount from some insurance companies. This discount is a great way to save money on your car insurance. So if you're a high-achieving student, be sure to ask your parents about this money-saving opportunity the next time they renew their car insurance policy.
Accident forgiveness
Even the best young drivers have accidents from time to time. And if you're not careful, your insurance rates could go up by as much as 30%. However, if you have accident forgiveness as part of your teen car insurance package, your rates will not increase following the first at-fault automobile accident. So be sure to ask your insurer about this important coverage option the next time you're looking for car insurance for your teen driver.
Discount for defensive driving class
When your teen completes an approved defensive driving class, they'll be eligible for a discount on their car insurance. This could help you save money on your family's car insurance premiums.
Anti-theft devices discount
Installing an anti-theft device in your vehicle could save you money on your insurance premiums. The amount of the discount varies depending on the type of device installed and the state in which the vehicle is registered.
Student away at school discount
If you have a student who is under the age of 25 and only uses their car while at home during school vacations and holidays, you may be able to save on your auto insurance.
How you can reduce your teen insurance premium?
You may be able to lower your premia by:
- Purchase a safe car for your teenager: This is the most important thing you can do to keep them safe on the road.
- Reduce or remove comprehensive/collision coverage if the teen's car is low value: If the car isn't worth much, you might not need to pay for comprehensive or collision coverage.
- Increase the deductible on their coverage: This will lower your monthly premium payments.
Options for a teen car insurance after an accident
If you're not happy with your auto claim experience for any reason, the "Claim satisfaction guarantee" will reimburse you—no questions asked.
If your teen's car is in the shop after an accident, rental reimbursement coverage can help you cover the costs of a rental car. This type of insurance can be a lifesaver when you need transportation but can't use your own car.
Roadside rescue with roadside assistance
There's a lot that can go wrong when you're out on the road. But with roadside assistance, you can get help with just a few taps on your phone. Your teen can have quick access to
- Roadside assistance services like towing, tire changes, and jump start.
- GPS tracking of the help that's on the way so you know when to expect it.
- A network of 24/7 roadside providers is dispatched by your insurer in minutes.
Do I have to add my teenager to my car insurance?
Although it may be tempting for a teenager to drive without insurance, it is neither a good idea nor legal. Your teenager can get their own policy, but it will likely be much higher than a rate they could have received if they had been added to a parent’s policy. They also will not be eligible for any multi-policy discounts.
It's still important to inform your insurance agent before a teen gets their preliminary permit, even though a teen's learner's permit will likely have little impact on premiums because of the required adult supervision. Not ensuring proper coverage could lead to complications if the new driver has an accident and needs to file a claim.
How much is teen car insurance?
There are a number of factors that go into determining the premium for car insurance for young adults and teenagers. This includes things like the coverages you choose, your deductible, the state you live in, the value of your car, and any available discounts. By taking all of these things into account, you can get an accurate estimate of what your insurance will cost.
Choose the right car and insurance policy
As your teen begins shopping for their first car, it's important to keep insurance costs in mind. A luxury car may be their dream, but it will likely come with a higher insurance premium. To save money, look for a safe and reliable car that won't break the bank.
However, if your teen does have a luxury vehicle, it will be cheaper for them to be on their own insurance policy. The insurance premiums will be significantly higher than other cars on your policy.
If either parent has any DUIs or multiple moving violations, it may make more sense for their teen driver to purchase their own policy. In fact, adding a teen driver to your current policy could make it even more expensive.
It's usually cheaper to add your teenager to your existing car insurance policy rather than buying them a separate policy. While this will cause your rates to go up, your coverage and deductibles will also apply to your teen. You can save money on your car insurance by signing up for a multi-car policy.
A higher auto insurance deductible can save you money on your monthly premiums, but it could also mean paying more out-of-pocket after an accident. If your vehicle is older or has high mileage, liability coverage may be a better option than collision or comprehensive – though it will not cover damages to your car after an at-fault accident. It's important to get the right coverage that best fits your needs in order to save money on your teen auto policy.
Help keep your teen driver safe
It is important to set some ground rules for your teen driver. Discuss when, where, and how they can drive, as well as with whom. You should also limit the number of passengers in the car. It is important to have a curfew for teenage drivers. Always insist that your driver (and passengers) wear seatbelts. Limit teen driving during high-risk times, such as Friday or Saturday nights. Set driving-area limits and prohibit driving under the influence—or riding with friends who are.
Takeaway
As a parent, it’s important to make sure you’re getting the right coverage for your teen’s car insurance policy. While it may be tempting to skimp on coverage to save money, this could end up costing you more in the long run if your teen gets into an accident. Make sure to shop around and compare rates to get the best deal possible.
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