Your teenager has been liberated! But how much will it cost you?
For a teenager, getting a driver’s license is one of the most exciting days of their lives thus far. And with good reason—it’s more than a milestone, it’s a brand new level of independence and responsibility. As a parent, this moment is also exciting—and a bit frightening! In addition to the fact that your child will now be on the road on their own, you’ll have to face an increase in your automobile insurance policy that may be much more than anticipated. But, before you take out a second mortgage or start selling assets, check out these tips on saving:
1. Shop around
Not all insurance providers will charge the same amount for auto insurance for your new driver, so do some comparisons before purchasing anything. A good rule of thumb is to get at least three quotes and then choose which offers the best coverage at the most reasonable price. Sometimes, the estimate that is neither the cheapest nor the most expensive (yet, a middle ground offer) turns out to be the best choice.
2. Ask about discounts
Many providers will offer special discounts for things like good grades and completing a driver safety education course, so don’t be afraid to ask what’s available. And, if your new driver is going to be on the road in an older car or will only be driving to and from school, then you may be eligible for a low annual mileage discount as well.
3. Find out about insurer tracking programs
Many insurance carriers are now offering programs that track driving habits and reward you with savings for good driving. Programs like these can decrease your monthly premiums by up to 30 percent, which is big.
4. Choose a pre-owned vehicle
If you’re purchasing a car for your new driver, it’s recommended that you go with one that’s not brand new (or too expensive). While you want to get one with all of the safety features, older cars are typically less expensive to repair and are considered less risky to your insurance provider. And, since we all know that teenagers (especially boys, sorry, just the facts!) are more at risk to get into accidents, it makes sense to select a vehicle that will be less costly to repair.
5. Add them to your policy
Although you’re likely not going to enjoy handing over your keys whenever your teen wants to hit the mall or the movies, it often makes sense to add your new driver to your policy rather than getting them a vehicle right away. Adding a car, whether new or used, still adds a lot to your monthly premium.
6. Be a good role model
While your teenager has learned all about the importance of safe driving in their required road rules course, it’s really crucial to continually stress how much their driving habits can affect them and others on the road. Remind them often that speeding and reckless driving is not only a danger to them, but to the many other people that are sharing the street with them. In addition, demonstrating safe driving at all times only serves to solidify how critical it is—so always do your best to follow the rules when you’re behind the wheel.
Talk to us when your teenager gets their license and we’ll help you get the best rates on auto insurance. You can also save by bundling policies, so if you have a homeowner’s policy, commercial or business coverage, or life insurance, we can discuss options that may offer you a more reasonable premium. Saving is important, especially when you have a new driver on the road, and we can help you discover the best options for your family.