Teenage drivers are the highest-risk drivers on the road. Adding a teen driver to your car insurance policy might seem a little scary. Not only is your child taking a huge step by getting behind the wheel, but you’re also facing increases in your insurance rates. If you’re wondering how to insure your teen without breaking the bank, here are some details that may help you.
When Must You Insure Your Teen To Your Policy
You should add your teen to your auto or car insurance policy when he gets a learner’s permit. A learner’s permit allows your teen to operate a vehicle under certain conditions (e.g., when a licensed driver is also in the vehicle; during daylight hours only) and is typically issued for the time period (e.g., 60 days, 90 days) before your teen gets a permanent driver’s license. Once your teen graduates from a permit to a license, it’s time to get him or her on the policy or purchase a separate policy. Adding your teen to your own policy is cheaper option rather then purchasing a separate policy.
Teen Boys Are More Expensive To Insure Than Girls
Auto insurance is one industry where the term “gender equality” doesn’t apply – unless you live in the handful of states where there is a law against using gender as a factor in rates. The cost of car insurance is more expensive for boys than girls due to statistics on the driving habits and risk-taking activities of boys compared to girls. Therefore, be prepared to pay higher rates for your teenage son (except in Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania where it is not allowed).
Money Saving Tips For Teen Car Insurance
Here are some money saving tips for teenager car insurance you must read:
1. Pick The Right Car
Buy used or hold onto the cars you already have. A sports car or other high-powered vehicle is all wrong for a novice driver, and the insurance rates will back that up. A family sedan, minivan or small SUV are typically the vehicles with the best rates for teens.
2. Get Good Student & Other Discounts
There are some auto insurance discounts you get automatically such as discounts for raising your deductible or buying a car with an anti-theft device. The good student discount for good grades isn’t one of these. You have to call your insurer or agent and ask for it. And while you’re talking to your insurer, ask about other discounts specific to your company.
3. Hit The Driver’s Education Course
Sign up your teenager for a driver’s education course in your state. Upon completion of the course and providing your insurance company with a completion certificate, you’ll often see a 10 percent discount on your insurance. Some insurance companies, such as Liberty Mutual, even offer online driving courses that are proven to result in both safer driving and insurance discounts.
4. Leave Car At Home
f your teen is headed off to college or already attending school at least 100 miles away from home, leaving his car at home can save you money on your car insurance. Many car insurance companies offer discounts to teens who only drive when they are home for school breaks or weekends.
5. Delay Teen Getting His License
The younger the driver, the higher the car insurance costs. If your teen starts the licensing process at 15 but waits until 17 to be licensed, you will not have to pay costs for those two years and will pay lower rates when he is 17 than you would when he was of 15 years. This benefit you can get if you delay your teen to getting license.