In North Carolina, adding a teen to your auto insurance policy increases your premium by 60%.
While teens are responsible for the most crashes in the US, the vast majority of them are preventable. In fact, studies show that distractions such as texting are to blame for 58% of teen crashes.
Regardless, auto insurance is still required for every driver. The good news is that there are several steps you can take to save big on insurance for young drivers.
Ask About the Good Student Discount
Believe it or not, some insurance carriers will reward you if you perform well in the classroom. All you have to do is show them your report card.
This is what’s often referred to as the “good student” discount.
Both high school and college students are eligible. As long as you’re under 25 and enrolled as a full-time student, you can take advantage of this discount.
Most “good student” discounts save you up to 20%-25% on insurance for young drivers. This can provide some big-time incentives to maintain A’s at school.
Don’t Forget to Mention Safety Features
Auto insurance companies value anything that reduces your odds of having car issues. This also includes technology.
Therefore, make note of all the safety features your car has before looking at your options. If you’re lucky, those high-tech features might end up reducing your insurance costs.
For example, having an anti-theft device can save you up to 10% in some cases. Here are a few other safety features that could potentially save you some money:
- Anti-lock brakes
- Motorized seat belts
- Stability control systems
- Full front-seat and side airbags
Focus Only on the Coverage You Need
The reality is that the level of coverage needed depends on the individual. How far and how often you drive both play a role in what type of insurance you should get. The cost and age of your vehicle do, too.
The state of North Carolina only requires liability insurance. This may be an ideal option if you have an older vehicle and only drive it a short distance to school. In this situation, you may be able to skimp on both collision and comprehensive insurance.
However, if you plan to drive more often, liability insurance might not be enough. The same applies if you’re driving a financed car.
Look Into Defensive Driving Courses
Driver safety courses are not just for those who get in trouble with the law. In some situations, they also help to cut the cost of insurance for young drivers too.
Unfortunately, as a young driver, you don’t have a long, clean driving record you can point to. Defensive driving courses, however, can bolster your resume.
As it stands, North Carolina doesn’t mandate a discount for these courses. That said, many insurance providers still offer it. But you must qualify.
Purchasing Insurance for Young Drivers
Overall, premiums tend to even out around the age of 25. However, following the tips outlined above can help you slice your costs right now.
Remember to ask about discounts related to good grades. Also, make sure you let the insurance company know about all the safety features of your car.