Save on car insurance for teenagers

For many young people, a driver’s license represents greater freedom and independence. For parents, a young driver with a new license can not only add stress but also a dangerous increase in car insurance.

I almost fell over when I opened my first car insurance loan after adding my 16 year old daughter to my policy. It had doubled in the past month. I was sure it was a mistake. Maybe I forgot to pay last month’s bill? I immediately called my assistant, who couldn’t comfort me. That’s right, he said. Add a teenager to your schedule and your salary will go up.

“Insurance is risk-based, and rates are based on a number of factors, including who you are, where you are, what you drive, and how you drive,” said Allie Byers, a spokeswoman for the insurance website. Zebra.

For most carriers, “who you are” includes age, which is a key factor in determining your auto insurance rate.

“Because young drivers have a higher risk than older drivers, with more opportunities for car accidents and road fatalities, their car insurance rates will be higher,” says Byers.

We all have to start somewhere, but due to the lack of information, drivers up to the age of 25 (or their parents) can expect to pay 115 percent more per year than the average driver – $1,667 for a six-month policy, versus US average of $774 – according to research done by insurance comparison website, The Zebra.

The good news is that parents and teens have the opportunity to save money on teen car insurance, says Byers, who suggests buying first.

“You may find you pay significantly less for the same or better plan,” says Byers.

Also, ask your agent to take advantage of any available discounts. I was able to shave a few percent off my bill by signing up for a pay-as-you-go plan through my agent.

Here are some tips to help you save, courtesy of The Zebra.

Keep your child on your car insurance policy: Car insurance is very expensive for young drivers on their results. Parents who choose to insure their child under their policy save an average of $955 every six months compared to a stand-alone policy with a young driver.

Great student discount: If your driver has good grades – usually a B or better – ask about good student discounts. Nationally, Progressive, Geico, All State and others offer various student discounts. Students who are insured with State Farm can save up to 15 percent by enrolling in the company’s Steer Clear program. Obviously, your insurance will require regular proof, such as a note, to qualify.

Defensive Driver Discount / Safe Driving: These programs can not only help teach young people how to be safe drivers, but also reduce the chances of being cited for accidents that can increase your premiums. In New York, you can save 10 percent off your salary for three years if you take a state-approved course. The actual requirements and requirements for these deductibles vary, so check with your insurance company for more information to get the lowest price.

Choose a safe and affordable car: Insurance companies consider both the driver and the vehicle when deciding on insurance rates. If you want to keep your costs low, consider an affordable car, such as a used car, with good insurance. New cars, trucks and luxury models cost more to insure.

Check out their drive: If your child is a good driver, consider asking your insurance agent about the use of telematics, a tracking device that monitors the driving and habits, which helps determine the cost of car insurance.

Consider additional options: If you’re not sure if your child can drive, you may want to consider what it’s called. Accidental forgiveness to your schedule. Although it varies by insurance and your state, this can “forgive” the first accident on your insurance – meaning, your rate will not be raised because you were in a car accident. Note that not all insurance companies offer this coverage, and there may be age and geographic restrictions. The Insurance Information Institute also suggests increasing your limits if you add a teen driver to your policy, as this can help protect against lawsuits or damages that may arise if your teen is involved in an accident.

Don’t pay for services you don’t need: If your new driver is using a used car, make sure you’re not paying for something you don’t need. Struggle with full coverage they are only made for it to borrow or of money cars, or cars worth more than $4,000. Compare the cost of paying for repairs out of pocket with the cost of comprehensive and collision insurance to see if dropping this option seems worthwhile.