If you’re thinking about adding your teenager to your car insurance, you know it’s a quick way to increase your rates. What’s more, is the gender of your child matters.
For instance, Forbes states that adding a 16-year-old son increases rates by 92% on average. While a 16-year-old daughter can increase it by 67%.
While both rates are more than double what you’re paying now, they are fairly cheap if you consider the cost of your teen having an independent insurance plan.
Not to mention, as the parent you’re responsible for additional insurance spikes if your child gets into an accident. So, how do you allow your teen to drive while still keeping a roof over your family’s heads?
Continue reading this article for 10 tips about adding teenagers to car insurance.
Adding a Teenager to Car Insurance
Being the parent of a driving teenager is a bittersweet feeling. On one hand, your child has a newfound independence which frees you up from acting as their personal taxi service.
On the other hand, insurance is expensive and you’re bound to worry about your kid’s safety on top of that. Here are some factors you should consider before adding your teenager to your car insurance. These tips can help decrease the costs.
1. Compare Policies
Shopping around is always the best way to get a good deal, regardless of what you’re shopping for. Car insurance isn’t any different.
Your car insurance may have been great before your teen began driving, but that doesn’t mean they will still have the best deal when you add your teenage driver. Get quotes from several car insurance providers to see who has the best premiums for your driving record and your teen’s newness.
2. Ask About Multi-Policy Discounts
Sometimes an insurance company will give you a discount if you are bundling different policies with them. Let’s say you have your home, life, and car insurance all within the same place.
During your shopping around phase, you should ask for details regarding multi-policy discounts.
3. Safety Courses and Good Grades
There are two teen auto insurance perks that are often overlooked. The first is that many insurers will provide a discount for teenagers who have taken and passed a specified safety course.
The course might be performed in person or online depending on the insurance company, so be sure to ask about that. Teens who get good grades (at least a B average) are less likely to become involved in accidents while driving.
This is why many insurers have good student discounts.
4. Purchase a “Low Target” Car
You may already know that the type of car you drive will have an impact on your insurance rates. The same goes for your teen driver. So, the next couple of points are about the types of cars that’ll give you the lowest rates.
Some cars are stolen more often than other cars are. Keep in mind that these aren’t always the fanciest or most expensive cars on the lot. These are the ones that are typically targeted by thieves because their parts are valuable.
The insurance rates on cars that are stolen most often tend to be higher. So, do some research while car shopping for your teen to find one that fits into the category of “low target” cars.
5. Buy an Older Car
Not only are older or used cars less expensive to buy, they also tend to carry cheaper insurance rates. So, instead of buying something brand new for your teen right away, get an older car until they become more financially responsible.
6. Get a Safe Car
Like older cars, a safer car will get you a lower insurance rate. Look at vehicles that have high crash test ratings or top of the line safety equipment.
7. Put Your Teenager on Your Policy
When you are comparing policies to one another, check to see how much it would cost to simply add your teen to your adult policy instead of getting them their own. This might save you some money.
Another tip is to make your teenager the primary driver in your household since they are usually cheaper to insure too.
8. Increase the Insurance Deductibles
If you want to reduce your premium cost, you can manipulate your deductible any way you see fit. Usually raising it will do the trick.
9. Educate Your Teen
Most people understand that the more accidents you get into, the higher your insurance rates will go up. But having these types of conversations with your teen is important in making them safer and more responsible drivers.
Also instead of simply telling your teen to “stay safe” when they’re on the road, teach them how maintaining a good driving record correlates with low insurance costs. This will not only make them more mindful of safety while driving, it will prepare them for the point where they will need to pay for their own insurance as an adult.
Most teens don’t know that things like traffic citations can also impact the insurance. Whether they get a ticket for parking in an illegal spot or speeding, your insurance rates will increase even if they pay those tickets off right away.
10. College Discounts
If your teen is going to or plans on going to a college that’s more than 100 miles from your home, they might be eligible for a college discount if they don’t have a car of their own on campus. Speak to your insurance company about the details to find out if or how you can qualify.
Contact Us Today
We understand that adding a teenager to car insurance can turn into a confusing mess. That’s why we’re here to try to make it a little easier for you.
Check out our website to take a look at the types of insurances we offer and even get a free quote. We service North Carolina and would love to help you!