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Old 02-14-2005, 12:13 AM
jeffrey's Avatar
Join Date: Apr 2004
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Default Auto Insurance - Lowering The Cost For Teens

Finding reasonable auto insurance for your teenager is one of the most difficult issues when your child begins to drive. There are two main points working against them in the eyes of insurers. First, they have limited experience behind the wheel. Second, statistics show that a teenager is as much as three times more likely to get into an accident than a more mature driver. For auto insurers, this means that insuring teens is a high-risk proposition and the auto insurance rates they charge reflect this.

When you add a teenager to your policy, the rates are going to significantly increase. Although there are a large number of factors that will determine what you ultimately pay for their auto insurance, a rough estimate is that your rates will increase by 50% with a teenage girl and double with a teenage boy.

Even with this high risk status, there are a number of things you can do to lower the amount you pay for your teenager's auto insurance. The first thing is to decide which of the family cars to insure the teen under. While it's likely that the teen will want to drive the newer car, you can save a bundle by limiting them to driving an older car. Insurance rates for teenagers can be more than 50% less on an older car that a newer model. If your teenager complains about this, make the choice simple. Either make your teenager completely responsible for paying his share of the auto insurance, or agree to pay for the lesser amount and he must pay for the difference if he wants to drive the newer car. Since the difference will likely be several hundred dollars, there shouldn't be much of an argument.

While most of the time it'll be less to add the teenager onto your own auto insurance, there may be instances when purchasing a quality car that's 5 to 10 years old for your teenager and let him get his own auto insurance can work out to be less expensive. In fact, the savings could eventually even pay for the car. This is especially true if the family only has a single, new luxury car. Older cars have depreciated in value giving the insurer less monetary risk compared to a newer car. In addition, older cars usually carry much less collision and comprehensive coverage than they would on a new car. Again, this allows the auto insurer to reduce the price they charge.

If you do have your teenager put onto your current auto insurance, try to have your teenager classified as an "occasional" or "pleasure-use only" driver on the car rather than a "primary" driver. The primary driver classification will increase the cost of the auto insurance for your teenager since there is the assumption that he will be driving the car more than if he is an occasional or pleasure-use only driver.

Take advantage of the good student discount for your teen. Students with a B average or better will usually qualify for this discount. This discount is given for the same reason as all other discounts. Studies have shown that students that get good grades have better driving records than those with lower grade averages.

Be sure that your teenager has completed a driver's education course. If they can do this through their high school curriculum, this is usually fine. If not, call your current insurer to check what diver's education courses qualify for their student discount. Even if the driver's education course is expensive, it'll almost always pay for itself many times over in insurance rate discounts.

Another reason to contact your current insurer is to find out if a defensive driving course can help reduce your teenager's insurance premiums. Some insurers will give an additional discount if a student takes a defensive driver's course on top of their regular driver's education course.

Above all else, it's well worth the effort to spend adequate time with your teenagers teaching them good driving skills while they still have their practice license. If you think the auto insurance rates seem high when they first begins to drive, they'll seem downright cheap compared to what they'll balloon to if they get a couple of tickets or get into an accident.
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Old 10-22-2009, 12:04 AM
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Join Date: Sep 2009
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I think it is best for the parents to get the car insurance for their kids. This way they can integrate their car insurance with their kids and get discounts.

Of course, if your parents can't do it for you, your best choice is to:
1. choose an older car model
2. install safety features such as seatbelts and airbags (if possible)
3. keep a clean driving record
4. minimize your mileage - don't drive if yo don't have to
5. get good grades in school -- yes, you can get a discount by being a conscientious student.
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Old 08-04-2017, 12:52 AM
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determine what you ultimately pay for their auto insurance, a rough estimate is that your rates will increase by 50% with a teenage girl and double with a teenage boy.
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