Getting insurance for your newly licensed teen driver can be expensive. Young drivers don’t have the best reputation with the insurance companies, which means premiums start high and then go down as a teen driver ages.
To ease the financial burden, below are seven ways you can save money when insuring a teen driver.
- Add them to your own insurance policy. This is usually cheaper overall than having two separate insurance policies.
- Shop around. Though you want to use just one insurance carrier, your current insurer may not be the best company to use. Although they might be the right car insurance company for you, they may no longer have the best rates when you add a teen driver to the policy. It never hurts to compare prices.
- Encourage them to get good grades. Teens can often get discounts on auto insurance if they have at least a 3.0 GPA. Apparently, smart kids — or those who are responsible enough to study — are less likely to get into car accidents.
- Take advantage of driver’s ed or defensive driving courses. Completing such classes can earn a teen more favorable auto insurance rates.
- Choose a car that’s cheaper to insure. Sports coupes or powerful SUVs give teens a greater ability to cause damage, and therefore have higher insurance rates. Instead, choose a conservative, safe car for your teen driver. A small or mid-size family sedan will likely result in the lowest insurance costs, while being safer and giving added protection in the event of an accident.
- Send them off to college. If your teen leaves home for college and doesn’t take a car, you can get big insurance savings for the times when they’re at home and borrow your vehicle.
- Let them go. When they leave the nest and do have their own vehicle, it usually makes sense for them to have their own insurance policy and pay for it themselves.
To get the right car for your teen while saving money on insurance and on the monthly car payments, check out the lease transfer options available at Swapalease.com.
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