Teen drivers are the most expensive ones to insure. Adding a teen to your policy could potentially double your premiums before the young driver has even gotten behind the wheel. While it is impossible to provide a national calculation of teen car insurance rates, there are some suggestions that can be used to keep the costs as low as possible.
Auto insurance companies will offer a discount on coverage to teems who have taken driver education courses. These courses are designed to give teens the necessary basic training they need to operate a car, including awareness of traffic laws. A typical teen can save as much as 5%-10% by presenting a certificate of completion to the insurance company.
Good grades are a sign of personal responsibility, and that is an important factor when calculating teen car insurance premiums. The reward for good grades is a discount on the cost of auto insurance. The discount is small, but anything is helpful when you are looking at annual premiums totaled in the thousands.
New car are more expensive to insure than older cars, regardless of the safety features involved. Purchasing an older car outright can save even more money, eliminating the requirements of full coverage and such things as GAP coverage. Because young drivers are more likely to get involved in accidents, driving a car that can be replaced as cheaply as new cars can be repaired makes sound financial sense. With an older car, you can omit collision coverage, reducing your annual premiums. Check with your insurance company to find out which family vehicle a teen has been assigned to. Many insurers will automatically assign young drivers to the most expensive vehicle unless they are expressly told which car the teen will be driving.
Before you purchase a car insurance policy for teens, or add them to your own, compare car insurance quotes online. This will allow you to get the most complete coverage for the lowest premium rate, and give you an idea of what the average cost of car insurance for teen drivers will be. Insuring a teen driver is expensive, so take advantage of any discounts you may be eligible for, including discounts based on where you live or how far the car will be driven.