How can you find cheap car insurance for a teenager? As anyone who has recently compared teen car insurance rates knows, it can often be quite tricky to find a cheap car insurance policy for a new teen driver. However, if one is willing to spend a little time doing research, there are certainly a few different tricks of the trade to help find a cheap car insurance rate for a teenager.
After all, what spends more money (and costs more money) than a teenager? That’s the question most parents ask themselves after their baby girl or boy is born and reaches the years of being the number one consumer in the US market. From going to the mall and buying clothes, shoes or video games, to paying to go out to dinner, school functions or sporting events; teenagers can be very expensive. When it comes to car insurance, unfortunately for parents, the situation is not different at all.
Insurance companies leave the highest rates to the teens because, after all, it’s the novices who take the wheel. It is shown through statistics that teenagers are involved in a high degree of accidents and that the possibility of a teenager drinking and driving is much higher than that of an adult. It is for these things that teenagers have always been charged much more for car insurance than adults and this will not change. However, there is hope for parents, because despite teens being charged high rates, they can still find cheap auto insurance if they do certain things.
The first thing a parent should know about saving money on car insurance is that a teen should never start the car insurance process on their own. Parents and even teens can save a lot of money by adding to the family auto insurance policy. Although the rate will increase, the cost of that increase compared to what a teen would pay if they had their own policy is much lower. It is important to note that you can add a teen as soon as she gets her learner’s permit and that most insurance companies do not increase the rate until the teen has a driver’s license. This means the cost of the policy will stay the same for about a year until the teen transitions from permit to license.
Another thing you can do to save money on a teen auto insurance policy is to increase the deductible on the policy coverage. If you increase the deductible, you’ll be under pressure from the car company, so they’ll lower your monthly premiums and annual rate in the process. Most people leave the deductible low and that is why their premiums are so high, usually a deductible between $500 and $1,000 will do the job. However, you should know that in the event of a car accident, you will be responsible for paying that deductible, so it is important that you only increase it if you can pay the deductible amount.
One thing that can determine whether or not your policy is going to be cheap is the discounts you can apply for as a teenager. Although most companies vary with discounts and not all offer the same ones, you should always try to do a little research and look for ones that you can apply. At many companies, a teen can get a nice discount if they take a driver’s education or defensive driving course. This shows the insurance company that the teen is trying to become a better driver and that through a class he learned to drive defensively and alert at all times.
Another great auto insurance discount for teens is the good student discount. At some companies this is only for high school students, but at most this applies to college students as well. If you have a GPA of 3.0 or higher and show that you are focused on your studies, most companies will give you a discount to help you reach your goals. Some other discounts available on auto insurance for teens include discounts on safety features that save you money if you have an alarm, air bags, anti-lock brakes, automatic seat belts, and many other things; and the discount for a good driver that is granted to a person who drives for three years or more without having a citation or accident on his record. The latter can be a money-saving opportunity because if your teen starts driving safely at age 19 they may be eligible for this money-saving opportunity.
Last but not least, it’s important for both parents and teens to shop around for the best rate possible. You can do this online as most companies these days have some sort of website you can get a quote from, or in person by visiting insurance company agencies around town. If you’re going to do it online, be sure to compare quotes from as many different auto insurance companies as possible to increase your chances of finding a low-cost teen auto insurance policy.
You can also use comparison websites that will allow you to see rates from many insurance companies. If, on the other hand, you are going to make the purchase in person, then visit at least three agencies. Get as many quotes as possible and then compare them to see which one would be the best in terms of cost and services.
