Teenagers are more likely to be involved in a car accident than any other age group, according to the Centers for Disease Control and Prevention. Buying car insurance for a teenager may seem costly, but there are ways to lower the premiums.
1. Have your teen drive an older car
If your car’s cash value is low and your deductible is high, it might not be worth paying for collision insurance. For example, if you get in an accident with a $1,500 car and have a $1,000 deductible, you will end up paying $1,000, your insurance company will only cover the additional $500, and the cost of repairs may still be higher. That cost will come out of your pocket. Removing your collision coverage can bring your insurance premium down, saving you money in the long run.
2020 Letter: Kerrisdale Outlines Long Thesis For This ESG Tech Stock
Sahm Adrangi's Kerrisdale Capital was up 6.5% for the fourth quarter, including a decline of 0.3% in October and gains of 3.2% and 3.5% for November and December, respectively. For comparison, the S&P 500 gained 12.2% during the fourth quarter, while the Barclay Hedge Fund Index was up 9.3%. Q4 2020 hedge fund letters, conferences Read More
2. Consolidate your insurance
If you carry insurance on multiple cars as well as your home, you can typically receive discounts if you use one insurance company to cover everything. Make sure everyone in your family is using the same insurance company to receive the maximum discount.
3. Reconsider your deductible
Decide how much you can afford to pay if you do get in an accident. If you can afford an additional $250 or even $500, you can save money by raising your deductible.
4. Shop around
When adding your teenager to your insurance policy, don’t assume that you’ll get the best deal with your current company. Different companies offer distinct discounts for combined insurance, and the rates vary. Go comparison shop for auto insurance quotes on sites like autoinsurancecenter.com. Taking the time to compare premiums from a variety of companies can pay down the road. Additionally, the rates at smaller, local insurance companies may be lower than those at big-name companies. Don’t ignore the little guys.
5. Be careful
Because safe drivers often qualify for lower premiums, make sure your teenager is careful on the road. Discuss the importance of minimizing distractions such as eating or talking on the phone while driving. Set guidelines that will keep your teenager safe, such as restricting the number of friends in the car or avoiding high-traffic driving times.
6. Encourage success off the road
According to the Department of Motor Vehicles, teenagers with higher grades may qualify for discounts with many insurance companies. Help your child achieve success in school to save money on auto insurance.
7. Pay in bulk
Instead of paying your premium every month, pay quarterly or yearly. You’ll avoid fees that are often added onto your monthly bill.
8. Stay protected
Cars with alarm systems or those that are housed in private garages are less likely to be stolen or vandalized. Therefore, your insurance company may give you a discount when you protect your car from theft.
9. Use credit wisely
A good credit score can benefit you when shopping for car insurance. Pay your credit card bills on time, and you’ll likely receive a lower rate on your car insurance.
10. Monitor driving habits
An article in the USA Today describes devices that parents can use to track their teenagers’ driving habits. Many insurance companies offer GPS devices that can alert parents when their teens are driving too fast.