Your teenager is about to get a driver's license and you want to add this youngster to your auto insurance policy. Your premium rate will increase when you do this because insurance companies view teens as high-risk drivers. Some insurance companies offer specific discounts for drivers in this age group that could save you money.
Maintaining a Good Grade Point Average
Perhaps the most common way to save on teen automotive insurance is for the student to get good grades. This indicates a level of responsibility that insurance underwriters expect to extend into other areas of life -- including driving. The required GPA might be a B average, or the student might need to be on the school's honor roll.
Completing a Driver's Education Program
An insurance carrier may offer policy savings if the teen completes a behind-the-wheel driver training program that the company approves. If your state doesn't require formal driver's education to obtain a license, you may want to look into this option anyway. Even if you can't get an insurance discount with the policy you choose, the extra training will be beneficial for the new driver.
Some insurance carriers also reduce rates for teens if they complete an approved online driver training course.
Signing a Parent-Teen Driving Agreement
An insurance carrier may offer savings if you and your teenager sign a contract promising to follow family driving rules. These rules include important aspects such as always wearing a safety belt and never texting while driving. You can see an example of one of these contracts set up by the U.S. Centers for Disease Control. The insurance company you choose may have its own contract or offer one developed by your state.
If you can't obtain this type of discount, the contract is still an excellent idea for getting your teenager to make a solid commitment to safe driving.
Choosing Vehicle Safety Features
If this young driver will have their own car, it may be tempting for you to buy them an older, cheaper model. However, some insurance companies offer savings to teens if the car has certain safety features that help prevent accidents. A car with a lane departure warning system or adaptive cruise control, for instance, may qualify for an insurance discount.
What You Can Do Now
When you call car insurance agencies for quotes, ask about discounts for teen drivers if your youthful driver qualifies or if you want to pursue any of the options. You want the right amount of coverage, but there's no reason to pay more than you have to. Talk to your insurance company, one like Able Insurance Agency, for more information.