Although you are probably really excited about and proud of the fact that your teenage son or daughter is finally able to drive, you might not be looking forward to the notorious cost of insuring a teenager. Even though it is true that most auto insurance companies do charge more for high-risk drivers -- such as young teens who have little to no experience on the road -- you shouldn't automatically assume that you're going to have to spend a fortune. Instead, try these tips for reducing auto insurance costs when you have a teen driver on your policy.
Get Your Teen Their Own Policy
Most drivers can save money on their insurance policies by having multiple policies through the same insurer. This isn't always the case with teens, however. It can be expensive to have your teenager on your policy, especially if you have multiple vehicles or drive a car that is considered valuable or costly to insure. In a lot of cases, it's best to put your teen on a policy with his or her own vehicle. If your teen doesn't drive much, you may be able to ask about a non-operator's policy.
Insist on Good Grades
Here's one more reason to encourage your teen to get good grades in school -- many insurance companies offer a sizable discount for responsible teens who have good marks on their report cards. If your teen gets good grades in school, make sure to email or fax a copy of his or her report card to your insurance agent to possibly secure a discount.
Have Your Teen Go Through Additional Driving School
Some insurance companies offer a discount for drivers who take driver's education or defensive driving classes. Inquire with your insurance company about any discounts that your teen can score, and then enroll your son or daughter in these classes. Not only is there a chance that you can secure an insurance discount, but you can also feel more confident in your young driver's skills as well.
Don't Pay High Insurance Rates in College
When your teen goes to college, make sure that you notify your insurance company if he or she won't be driving often. You may be able to reduce coverage and save a nice sum of cash.
Although it isn't necessarily cheap to insure a young driver, there are things that you can do to cut costs. Try these tips, and you could find that it's cheaper than you thought to keep insurance on your teenage son or daughter. For more tips, contact a company like Olde Towne Insurance Agency.