Getting the Best Deal on Teen Auto Insurance
By Kristi Vaughan
Auto insurance rates are based on several key factors, the most significant of which is risk. So it is no wonder that teenaged drivers, with little experience on the road, are among the most costly to insure. As a parent, however there are several steps you can take to minimize these rates.
Driver's education
Whether it is through the local high school or a private company, driver's education can help make your teen a safer driver. And besides proving peace of mind to you, many insurance companies offer discounts to teens who have completed approved driver's education courses.
Good grades count
Statistics have shown that teens who are good students are better drivers so many insurance companies reward student who have good grades with a discount on their insurance. Check with your insurance carrier.
Safety first
Consider it a fact of insurance life: an eight cylinder sports car will cost more to insure than its four cylinder cousin. And a car with more safety features like anti-lock brakes and side impact air bags will cost less to insure than a similar model without those features. So if you have a choice among cars, opt for a safe one. The non-profit Insurance Information Institute has auto safety ratings for your reference.
Stress safe driving
The longer a teen driver goes without having an accident, the better the chance of lower premiums.
Raise your deductibles
Because insurance premiums are based, partly, on the cost of repairing or replacing a car should it be damaged in an accident, insurance costs can be reduced by assuming some of this risk yourself. You can do this by increasing the deductible amount on collision coverage for your teen's car. Depending on the value of the car, you might even think about eliminating collision insurance entirely.
