Teenage car insurance rates are notoriously expensive. Teenage girls raise your premiums substantially, but adding a teenage boy to your policy can literally double your rate. According to the National Safety Council, teens are three times more likely to be in a car accident than adult drivers and injuries from crashes are the number one cause of teen death in the U.S. This unfortunate teen driving track record accounts for the added cost. Still, while you may not get your teen's rates super low, there are things you can do to reduce your insurance costs.
Step 1
Apply for a good student discount. According to MSN Auto expert Ann Job, many insurance companies offer a 10 percent reduction, or more, for good grades. Contact your agent, then send in a copy of your teen's grade reports to see this savings. Use it as an incentive for your teen to continue to perform well, academically.
Step 2
Enroll your teen in extra driving courses. Job states that some insurance companies reduce rates based on the amount of driver's education that your teen has completed. Extra courses like defensive driving and road safety may garner you a discount.
Step 3
Choose the right car. According to Allstate Insurance Company, cars with higher safety ratings lower your premium, even for teen drivers. Call your agent to get quotes for multiple cars if you're car shopping and go with the safest car with the lowest rate. Avoid sports cars or high performance vehicles as these typically have the highest rates. Opt for features like airbags, anti-lock brakes and anti-theft devices for additional safety discounts.
Step 4
Add your teen to your own policy. Adding you teen to the family policy is usually cheaper than giving your teen his own policy. Your teen will get the benefit of your safe driving history and established credit. You may also be able to take advantage of multiple car or multiple driver discounts. Exclude your teen as a driver on any vehicles they won't be driving to save a little extra money.
Step 5
Emphasize road safety. Talk to your children about safe speed, avoiding cell phones while driving and other habits which might lead to a traffic violation or accidents. Keeping your teen's driving record clean may not get you a discount up front, but it will save you from a rate hike should something occur.
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