If you have a teenager approaching driving age in the house, hold on to your wallet. The cost of adding a teenage driver to your policy will run you anywhere from an extra $500 to $3,000 per year, according to Lease.com.
Why so much you ask? Because insuring someone without driving experience comes with a higher level of risk. Statistics show that crash rates are three times higher for a 16-year-old than they are for a 19-year-old driver, and six times higher than for drivers between the ages of 20 and 24.
But there are steps parents can take to keep rates as low as possible. First and foremost, take advantage of all of the discounts available to you through your auto insurance company. Here are some of the easiest ways to save money:
* Encourage your teenager to do well in school. Most insurance companies offer good student discounts for teen drivers able to maintain a “B” average or better. The discount ranges between 10 and 25 percent, depending on the insurance company.
* Require your teenager to take a driver’s education course before they are allowed to drive on their own. Most insurance companies will knock 5 to 15 percent off the cost of insuring a young driver who takes teen driver safety seriously.
Allstate, for example, views safety as such an important part of the driving experience, the company offers tools and resources on its website, www.allstate.com, such as a parent-teen driving contract, which sets some ground rules to follow, and a collection of tips designed to help teens become smart drivers.
Parents should also find out how their insurer assigns drivers to cars. In a household with three drivers and three vehicles, many auto insurance companies will automatically assign a teen driver to the most expensive vehicle. If the teenager will not be driving that vehicle, be sure to let the insurance company know. It’s a lot less expensive to insure a teen driver for a Ford Focus than a Mercedes convertible.
Another way to save money when adding a teenage driver to your policy is to shop around. The Internet is a great place to seek auto insurance quotes from multiple companies with ease.
No matter which company you do business with, if your son or daughter is able to maintain a safe driving record despite the odds against them, that will reflect well on them and you. The end result – lower rates the next time the policy comes up for renewal.
Courtesy of ARAcontent
