Do you have a teen who just got their driver's license? If so, you may see a big increase in your car insurance premiums. Car insurance companies often view teenagers as having an elevated risk level when they're behind the wheel. Part of the reason is that teen drivers just don't have as much experience as other drivers. Another is that many teens are distracted by cell phones, the radio, and even friends in the car. To offset this elevated risk, many companies charge higher premiums to insure teen drivers. Fortunately, there are steps you can take to manage your teen's insurance premiums. Here are three tips to save on your teen's insurance:
Apply for a good grade discount. Many car insurance companies offer discounts for teens who have a track record of academic success. They view the academic success as an indication that the teen is responsible in school and will therefore also be responsible behind the wheel. Your insurance company likely has minimum requirements that your teen must meet to qualify for the discount. For example, you may need to submit school transcripts or report cards to your insurer. Ask your insurance agent for more details.
Let the insurer track your team's driving. Some insurers now have technology that lets them track your driving ability. The technology usually involves a small chip that plugs in underneath your car's steering wheel. The chip then records details about your driving and compares it to other drivers to determine whether you are safer or more risky than the average driver.
If you are confident that your teen is a safe driver, this could be a good option. After reviewing the data, your insurer may offer a significant discount. However, if your teen is an unsafe driver, the insurer may use this data to increase your premiums. Make sure you know what the outcome will be before you go this route.
Sign up for driving school. In some states, driving school is mandatory for getting a driver's license. Even if it isn't mandatory in your state, though, driving school could still be a good idea. Many insurers will offer discounts if you can show that your teen successfully passed driving school. Many insurers believe that driving school helps teens become prepared and knowledgeable drivers so they can make better decisions on the road.
For more information, contact a driving school in your area. They can help you find the best classes to help reduce your teen's premiums.