Tips to Reduce Insurance Premiums for Your Teenage Driver
While most parents would prefer to keep
their teenagers off the road, you probably won’t have much success encouraging
them to withhold from getting that long awaited ticket to freedom.
Unfortunately, because teenagers are at a
higher risk for traffic accidents and tickets, their insurance rates can easily
be 50 to 75 percent higher than their parents.
Furthermore, premiums for teenage drivers generally won’t be
significantly reduced until they turn 25, get married or both. In the meantime, they'll stand to save money
by having themselves added to your insurance policy instead of getting their
Here are some ways to reduce car insurance
premiums, courtesy of the Independent Insurance Agents of America:
sure your teen stays in school and studies to make good grades. Many
insurers offer discounts to good students. A "B" average or better in school carries a lot of
weight in keeping insurance costs down.
up your teen for a supplementary driver's education course. Many insurers will offer a discount to
offset your investment.
- If your teen
will be driving a family car, designate one vehicle he or she will
drive. Otherwise, the insurance
company will calculate the premium based on the highest risk vehicle
covered by your policy.
- Consider a
higher deductible. Moving from a $250 to $500 or $1,000 deductible can
save you 10 to 20 percent on your premium. Consider whether you can absorb the extra out-of-pocket
expense in the event of an accident.
- Reward safe
driving. More than anything else,
an accident- and ticket-free driving record will keep your premiums at