How to Save Money on Car Insurance for Your Teen
Getting a driver’s license is a rite of passage for many teens. However, car insurance can be expensive, especially for teen drivers. Luckily, there are a number of things that families can do to lower the cost of their car insurance.
Why is Car Insurance for Teen Drivers so Expensive?
Insurance for a teen driver can be up to three times more expensive than insurance for an adult driver with a clean driving record, and the average annual premium for car insurance for a 16-year-old driver is $2,700. Why?
- Teen drivers are more likely to be involved in accidents. According to the National Highway Traffic Safety Administration (NHTSA), teen drivers are four times more likely to be involved in a fatal crash than drivers aged 20 and older.
- Teen drivers have less experience on the road. This means that they are less likely to be aware of the risks involved in driving and less likely to be able to react quickly to hazards.
- Teen drivers are more likely to engage in risky behavior.
- Speeding: The leading cause of teen accidents is speeding. 43% of teen drivers reported speeding in the past month, compared to 28% of drivers 20 and older.
- Driving Under the influence: in 2020, 10% of teen drivers involved in fatal crashes had been drinking alcohol, and 3% had been using drugs.
- Distracted driving: Distracted driving is a major risk factor for teen accidents. In fact, the NHTSA estimates that distracted driving is a factor in about 10% of all fatal teen crashes.
8 Tips to Lower Your Teen’s Car Insurance
Good Grades
Many insurance providers offer discounts for students who maintain good grades. Typically, maintaining a B average or higher can help secure this discount. Submitting proof of their good grades to the insurance company can lead to reduced premiums.
Choosing a Safe Vehicle
The type of car driven can play a crucial role in determining insurance costs. Avoid high-performance or sporty vehicles, as they tend to have higher insurance premiums. Opt for a safe, reliable, and modestly priced vehicle with good safety ratings. Vehicles equipped with safety features such as anti-lock brakes, airbags, and electronic stability control can also help lower insurance costs.
Increasing Your Deductible
By opting for higher deductibles, you can reduce the cost of your premiums.
Bundle Policies
If you have multiple insurance policies (e.g., home, auto), consider bundling them with the same insurance provider. Insurance companies often provide discounts for customers who bundle their policies, resulting in lower overall premiums.
Shop Around For Quotes
Take the time to compare insurance quotes from multiple providers. Rates can vary significantly, so obtaining quotes from different companies allows you to find the best coverage at the most affordable price. Basin Pacific can assist you with this and be your advocate when negotiating prices.
Taking a Driver’s Education Course
Completing a driver’s education course can significantly impact insurance premiums. These courses provide young drivers with essential knowledge, skills, and safe driving techniques, making them less of a risk for insurance providers. Many insurance companies offer discounts for teens who complete approved driver education programs.
Telematics Insurance Programs
Consider opting for usage-based insurance programs. These programs involve installing a device in the vehicle that monitors driving habits such as speed, mileage, and braking. By demonstrating safe driving behavior, your teen may be eligible for discounted rates based on their actual driving performance.
Emphasize Safe Driving Habits
Emphasize the importance of responsible driving habits such as obeying traffic laws, avoiding distractions, and never driving under the influence. Maintaining a clean driving record is crucial in keeping insurance premiums manageable.
Conclusion
While adding a teen driver to your car insurance policy can be expensive, implementing these strategies can help you save money without compromising coverage. Encouraging driver education, emphasizing safe driving habits, and choosing the right vehicle are all essential steps in reducing insurance costs. Remember to regularly compare quotes, review policy options, and stay informed about available discounts to maximize savings. By taking proactive measures, you can protect your teen driver while keeping insurance premiums under control.
Should you have any questions regarding your current coverage or want further information on auto insurance offered by Basin Pacific Insurance, click here, or contact us at (509) 765-4785.
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