It's no secret that adding a new driver to an auto insurance policy, such as a freshly licensed teen, can be costly. After all, new drivers are statistically more likely to get into accidents, making them a greater liability. Fortunately, there are a few ways that parents of new drivers (or teens paying for their own insurance) can go about saving money on car insurance without sacrificing coverage in the process.
Ask About Distance Discounts for College Students
For teens who are college-aged and will be leaving their cars at home while at school, it's worth asking your auto insurance company about a distance discount for college students. After all, many larger colleges and universities these days don't allow freshmen to keep vehicles on-campus. Essentially, this insurance discount allows you to suspend payments on your teen's auto insurance while they're away at school. This way, you can simply keep their car parked in your garage or driveway without having to waste your money on insuring it while it's not in use.
Put Your Teen's Good Grades to Work for You
Whether your teen is in high school or college, most auto insurance companies these days offer a "good student" discount to those with certain grade point averages. Generally, students need to maintain a "B" average on their report cards and be attending school full-time in order to take advantage of this discount. By simply sending over a copy of the report card to your auto insurance company, you could immediately begin taking advantage of this discount.
Consider Enrolling in a Driver's Safety Course
Even if your new driver already completed a driver's ed course, some auto insurance companies will offer additional discounts for teens and other new drivers who complete a separate driver's safety course once they obtain their license. These safety courses can generally be completed in-person or online, so they're flexible to work with even the busiest of schedules. Upon completion of such a course, simply present proof of completion to your auto insurance company for a discount.
Keep in mind that some auto insurance companies require you to take driver's safety courses from a specified list, so you'll want to check with them ahead of time to make sure you're enrolling in an eligible course.
Revisit Your Deductibles and Coverage
Now is also a great time to carefully review your auto insurance policy and its specific coverage amounts to make sure they're working for you. You might consider, for example, increasing your deductible if it's much lower than what you would practically need. On the other hand, you may need to increase your liability coverage if your new teen driver will be behind the wheel of your car. If you have questions about coverage specifics, speak with your auto insurance agent for help.
Add Your Teen to Your Existing Policy, If Possible
Depending on your auto insurance company and specific policy, you may be able to save money by simply adding your teeth driver to your existing policy rather than buying a separate policy for him or her. However, keep in mind that if your teen will have his or her own car that is registered in their name, they will need to carry their own policy. If you'll be sharing a family car, however, adding a new driver to your existing policy may save you the most money while still keeping you covered.
Auto insurance for new teen drivers can be a little pricey, but by following these tips, you can make sure you're taking advantage of all the savings that are available to you and reduce your monthly bill.