While your teenager being able to provide their own transportation to work and afterschool events is a time most parents look forward to, the potentially sky-high auto insurance premiums for teenagers can really put a damper on your happiness. However, with a bit of research and effort, you can lower your teen's premiums and your son or daughter will soon be on the road to enjoying their new-found freedom and independence.
To lower your teen's auto insurance premiums, follow these insurance industry tips:
Compare the Price of an Individual Policy Vs. a Family Policy
If your teen has purchased or been gifted their own car, you should look into the option of insuring it on its own auto insurance policy. This can sometimes save money and is also a good option if your teenager will be paying for their own monthly premiums. They will get their own bill each month and can learn to be responsible and pay their bills on time while still living at home.
Consider Bundling All of Your Household's Insurance With One Company
If you are unable to find a reasonably-priced individual insurance policy for your teen, then you can always add their car to your policy. For savings, you should consider bundling all of your household's insurance policies with one company. Some policies that can often be bundled together include:
If you have any of these other types of insurance policies in your household, then talk with your insurance agent about bundling to save money.
Think Seriously About Dropping Collision and Comprehensive Coverage
If you have a decent emergency fund to cover minor damage to your teen's car, then you should consider either dropping optional collision and comprehensive coverage or raising the deductible. Comprehensive and collision coverage tends to be pricey, and lowering or getting rid of this coverage can save you a lot of money.
Encourage Your Teenager to Get Good Grades in School
Finally, you should encourage your teenager to get good grades in school so their auto insurance premiums will be lower. Most auto insurance companies give generous discounts to students who maintain a "B" average or higher. The reason for this discount is that teens who get good grades are statistically less of a risk for auto accidents, so the insurance companies pass along the savings to good students.
Share11 May 2018
Hello, I'm Neil Boggs. I am crazy about riding motorcycles around town whenever I can. Since I live in a rainy city, I've been involved in more close calls than I'm comfortable admitting. Other drivers just don't seem to see motorcyclists despite having headlights on or loud exhaust pipes. Those close calls drove me to obtain a full coverage policy for my bike, even though it's not legally required in my city. In addition to medical coverage for myself and my passenger, I wanted all collision repairs covered in the event of an accident. I also elected to secure comprehensive coverage in the event of vandalism or theft damage or losses. I will discuss the various coverage types and amounts you can obtain for your motorcycle. I hope others will follow my lead and obtain full coverage to protect themselves from financial ruin after an accident or vandalism situation. Thanks.
