When a teenager first learns to drive they are considered a high risk for insurance companies. Regardless of how responsible a teenager is, they are considered more of a risk simply because of their lack of experience behind the wheel.
When it comes time to add a teenage driver to an auto insurance policy the premium will automatically increase. So let’s take a look at some things that might mitigate this.
Saving Money On Auto Insurance As A Youthful Driver
Probably the most commonly considered thing is the vehicle in which the teen driver will have access to drive. Even in a household where the young driver doesn’t own the car, he or she will be evaluated on the family vehicle.
Even if this may not be a vehicle the teen has permission to drive, it is still considered a vehicle they have access to. Therefore, for those households with more expensive or high risk vehicles it may actually save money to purchase a safe, cheap vehicle for the child.
This is more cost-efficient when the vehicle purchased is not rated a high risk vehicle and is old enough to carry liability insurance only on it.
Believe it or not, a teenager’s school grades may also play a role in their auto insurance rates. Being on the honor role or having exceptional grades can make a huge difference in a young person’s insurance rates.
Insurance companies may require proof of the child’s grade point average and you may be required to fax or mail in a copy of their report card or transcript. Most insurance companies require the insured to complete these tasks yearly upon renewal in order to keep a good student discount.
In some cases, additional driver courses and training can decrease the insurance premium as well. Some insurance companies offer discounts to those teen’s who have successfully completed a driver’s education course and have completed the allotted amount of time for driving with an instructor in the car.
Available discounts should be taken into consideration for the entire household and not just the teen driver. Some insurance companies offer safe driving courses that can be taken by any member of the household to provide extra discounts and lower the premium.
Adding a teenage driver to an insurance policy can be stressful due to the increase of the premium, but it doesn’t have to be. Taking into consideration all of the discounts available can help lower the premium and put the insured’s mind at ease.