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3 Ways To Save When Your Teen Starts Driving

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It's exciting to have your teen be able to start driving him or herself to school and work, but it can also be financially challenging. There's a good chance that your insurance policy is going to go up because insurance companies assume that teenage drivers are going to be less knowledgeable and skilled, as well as more likely to engage in risky behaviors. Insurance companies see them as greater risks. This can feel frustrating, especially if your teenager is a safe driver. Here are some ways to reduce the amount of money that you will have to pay each year on insurance.

1. Raise Your Deductible

If you know that your teenager knows how to drive safely and that everyone else on the insurance plan is a safe driver, then you can consider raising your deductible to $1,000 or more. This will reduce the amount of money that you have to pay each month and the amount of money that you will pay overall for the year if no one gets into an accident. It will also reduce the incentive to file smaller claims with your insurance company and instead pay out of pocket, reducing the chances that your rates will go up.

2. Tell Your Insurance Company When Your Child Goes to College

Another way to reduce your rate is to let the insurance company know when the child that is on your plan goes away to college and does not have a car. Depending on the insurance company and the state you live in, if your teen moves away a certain number of miles and doesn't have a car, your insurance company will know that your child is not likely going to be driving and is therefore less likely to need them to pay out. 

3. See If Your Insurance Company Offers Incentives for High Grades

Many insurance companies will offer incentives for kids that maintain a 3.0 GPA, or a "B" or higher in their grades. This is both a great way to help encourage your teen to get better grades. Insurance companies view responsible students as more likely to be responsible in other aspects of their life and therefore are more likely to be better drivers. Talk to your insurance provider to see if they have this available.

For more information about ways to lower your insurance rates despite having a teen driver, talk to your insurance agent (like those at Harris Insurance Services).