Unfortunately, as drivers under the age of 25 are considered to pose the most likely threat to insurance companies, insuring your new teenage driver can be intimidatingly expensive! Since studies show that drivers under 25 have the highest rate of at-fault accidents on the road, any licensed driver in their late teens and early 20s will commonly pay higher rates than drivers 26 and above. Yet, using secrets of the industry, you can find ways to cut the cost on your teenager’s auto insurance plan-without making serious sacrifices!
Auto Insurance for the Teenage Driver
Adding to Your Plan
While your teenager’s age will certainly play a role in raising their auto insurance rates, you can avoid excess charges by adding them onto your own current insurance policy. As auto insurance rates are also influenced by a driver’s credit score, your credit history will most likely allow your teen to gain a lower monthly rate. Additionally, as some providers offer family discounts, parents who choose to add their son or daughter to their auto insurance policy can typically take advantage of multi-driver savings and promotions.
Opting for Inexpensive Vehicles
In addition to adding your teen to the family’s auto insurance policy, individuals who are hoping to save on a teen’s insurance costs should also look at cheaper vehicles. As a more expensive car or SUV will raise a driver’s insurance rates, opting for a cheaper mode of transportation can help to reduce the teen’s monthly rate. Yet, when choosing the best (and most affordable) option, be sure that the vehicle still has standard safety features. Specifically, features such as collision and airbags can help to further reduce the auto insurance rate.
Money and Monitoring
Lastly, one of the most modern methods for cutting back on insurance costs involves taking advantage of incredibly innovative tools of technology. In order to verify that a teen driver is adhering to safe practices and habits, some insurance companies provide / allow teens to install driving monitoring devices in their vehicles. These devices allow the insurance provider (and parents) to verify the teen’s average speed, his / her tendency to brake too quickly, and so forth. With positive proof of safe driving, an insurance provider may agree to cut back on the teen’s rates!
