It's a well-known fact that adding a teen driver to your auto insurance policy can increase your monthly premiums. In fact, putting your teen on your policy could result in up to a 79 percent increase in what you're paying now, depending on where you live and who you're currently insured with. However, insuring your teen doesn't have to break the bank. Here are a few ways you can save money on your insurance premiums when you put your teenager on your policy.
Have Them Complete a Driver's Ed Course
In most states, completing a driver's education course is not required to receive a driver's license. As long as the teen can demonstrate he or she knows the rules of the road and can operate a vehicle safely by passing the licensing tests, your young adult will receive an official license. This means you can teach your teen how to drive at home without spending any money on driving courses.
However, if you want to save money on your auto insurance, it's a good idea to invest the dough into having your teen take lessons from a professional. Not only will it save you a few grey hairs, but your teen will learn the proper and safe way to drive and avoid picking up the bad habits you may have acquired over the years. Additionally, some companies will give you a discount on your insurance premiums if your teen has completed a driver's education course.
Ask About Discounts for Teens
Some insurance companies offer discounts specifically for teens to encourage good behavior on the road and in life in general. For instance, you may get a discount on your premiums if your teen stays in school and gets good grades. Other types of available discounts include:
Put together a list of discounts your teen may be eligible for so you can ask about them when you speak to your insurance rep about adding your child to your insurance policy.
Opt for Usage-Based Coverage
An interesting insurance program that could save you a lot of money on your insurance premiums is one based on how well you drive your vehicle. This program requires you to install a device in your car that monitors your driving habits and then adjusts your premiums based on your driving behavior.
In addition to saving you a lot of money, this program can help you monitor how your teen drives. If you notice some troublesome driving habits developing, you can step in and correct the issues before they lead to an accident.
Opt for a Safe Car
Sports and luxury cars can jack up your insurance premiums because insurance companies feel they represent a higher safety risk. Additionally, these types of vehicles are more prone to being stolen and typically cost more to fix, resulting in more money the insurance company has to pay out in the event something happens to the car. If you want to save money on your auto insurance rates, you should steer your young adult to a modest, reliable model with high safety ratings and the most safety features.
Have Your Teen Contribute
Last but not least, if your teen is old enough to drive, then he or she is also old enough to work. If you're not able to get your insurance premium to an affordable level, another option is to require that your teen help pay for it. This will help save you some money and teach your child fiscal responsibility.
For more information about saving money when adding a teen to your insurance policy, contact an auto insurance company.