If you have recently added a teenage driver to your policy, you may have seen a drastic increase in the cost of your premiums. Insurance companies view inexperienced drivers as a huge risk and charge more to keep your teenager insured. Knowing tips to help lower the cost of your insurance if you have a young driver on your policy may help you if you're dealing with this situation.
Tip #1: Take a class
Your teenager can enroll in a driver's education class to lower the cost of insurance. This will help your teenager learn of driving skills that may be beneficial in the long run. Providing the necessary amount of proof to your insurer, such as a certificate showing that your teenager has completed the course may be necessary.
Tip #2: Encourage good grades
Most insurance companies will provide a discount for teenagers who get good grades. These requirements include that this person must be younger than 25 years of age.
Additionally, the teenagers' grades must be maintained at a B average consistently for lowered rates.
Tip #3: Insure an older car
Your teenager may want a new sports car to drive when first beginning to drive, but this will cause your insurance to soar. Consider getting a car that is lesser in value, and that is older to help keep insurance costs low. This may help you avoid the need for comprehensive coverage and may allow you to simply get a liability policy.
Tip #4: Drive around together
Taking the time to ride with your teenager and provide advice may help your teenager avoid an accident in the future. This will allow you also to see how the teenager drives and what areas may need to be improved upon to help avoid unwanted accidents.
Tip #5: Raise deductibles
One way, to help you reduce the cost of coverage for your teenager, is by raising the amount of the deductible. This amount must be paid before your insurance provider will pay for any claim that is filed.
Be sure to ask your insurance agent the various deductible amounts that are offered and the rates that accompany these.
Finally, keeping your car insurance down when a teenager driver is added to the policy can be difficult. By using the tips above and talking to your insurance agent at places like Village Insurance about additional ways to save money, you can work to keep the costs of your coverage within an affordable range.