Adding a Teen Driver To Your Auto Insurance Policy

Every teenager dreams of the day they earn their drivers license – this rite of passage spells freedom for teens, but it also spells anxiety for parents. Not only will they spend time worrying about safety of these new and impressionable drivers, but parents now have the responsibility of insuring their teenager through the family car insurance policy. There is no doubt that your premiums will go up, however, there are still ways to save on auto insurance with a teenage driver on your policy.

Protect Your Teen and Find Ways to Reduce Your Auto Insurance Premium

Good Grades Bring Good Student Discounts

Ask your insurers about discounts for teen drivers that maintain a B average or better. Encourage your teen to keep those grades up, and as an incentive they will have the privilege of driving!

Extra Training May Bring Extra Savings

Many parents find that their new teen drivers are very cautious in the beginning, but then quickly become overconfident and start ignoring basic traffic rules and/or driving recklessly. Even if you have completed the mandatory driver’s ed classes, consider taking an additional driver training course. The extra training will hopefully lead to safe driving practices for years to come and could knock even more dollars off your premium.

Wait on Buying That New Car for Your Teen

While you might be tempted to buy your teenager a new car with all the latest safety features, consider that new cars are more expensive to insure. Sensible is better. To save money, assign your teen the oldest car on your policy. And if you have to purchase a new vehicles, consider an older model four-door sedan with an excellent safety record which will not appealing to car thieves.

Pick & Choose the Right Coverage For Your Situation

Think twice about collision and comprehensive coverage. Teens may be more prone to accidents, however, if your teen drives an older model car that isn’t financed, it might make more financial sense to skip these optional coverage types. Don’t skip on liability coverage though; you want to protect you and your teen from costly injuries and lawsuits.

Increase Your Deductible to Lower Auto Insurance Rates

Many people may know that raising their deductibles on their insurance policy can save them money, but most don’t feel the need to do this until after their insurance premiums increase. Parents can earn some significant savings by raising their deductibles.

By raising your deductible, you are assuming more financial responsibility in the event of an accident of minor damages. This amount will come out of your pocket before your insurance company starts paying for the rest of the covered damage. Make sure your teen driver the impact that an accident will have on your family finances, and of course, avoid them at all costs.

More Ways for Parents to Save on Auto Insurance for Teens

Keep Your Own Driving Record Clean

Set an example and show your teen what safe driving is all about. If you can avoid reckless driving, accidents and moving violations, over time you may qualify for Safe Driver discounts

Talk to Your Teen About the Importance of Safe Driving

If your teen driver gets in an accident or gets just one traffic violation, you rates will go up even higher. Make sure you talk with your teen about the privileges and consequences that come with driving. Keep them up-to-date on the latest laws (such as cellular phone or texting violations) and try out some of the latest apps for tracking your child’s driving habits, locations, etc..

Ask Your Agent About Other Eligible Discounts

Don’t forget to ask about other discounts unrelated to your teen driver. You might be eligible for certain car insurance premium reductions – combined policies, older model savings, recent drivers training, and more. Any of these factors can help you keep money in your pocket; save the money you would have normal spent in an savings account to cover your higher deductible.

Speak with your Atlas Plus agent to learn more about how adding a teen driver could affect your family auto insurance policy. And dig deep to find extra savings – you’re going to need it!

By | 2017-05-31T21:35:59+00:00 July 11th, 2013|Industry News|