Adding a teenager to your car insurance can potentially have a major impact on your premium. Due to their inexperience, teen drivers are often considered a risk by insurance companies and to compensate for the additional risk, parents often find themselves paying more for coverage. If you are planning to add a teen driver to your insurance, here are some ways you can lower their impact on your premium.
Enroll Your Teen in a Driving Course
Driving courses, such as defensive driving, teaches your teen the things he or she can do to be safer on the road. Not only does this give your teen the information he or she needs to be a better driver, it can possibly lower your insurance rates.
Once your teen completes the course, you can provide the certificate of completion to your provider and possibly get a driver safety discount. By completing the course, your teen is showing that he or she is committed to being a better driver, which makes him or her less of a risk for insurance providers.
Skip the New Car
New cars can cost more to insure. The premium goes up if the car is in a high risk category, such as sports car. Although your teen might want a new car, buying an older car can save money in a couple of ways.
When you buy a new car, most financers require you to have both comprehensive and collision coverage on the car. However, if you buy an older car, you can opt for the minimum required by your state and save money. If you opt for an older car with safety features and a solid safety rating by the insurance rating, you can also pull a lower rate for coverage.
Encourage Good Grades
How well your teen performs in school can have a bearing on how much you pay for car insurance. Good students are typically seen as more responsible. To the insurance companies, this often translates to them being less of a risk to insure.
If your teen has good grades, you can possibly receive a good student discount. Each insurance company has different standards for what it considers a good student. Check with the providers you are interested in to find out what grade average your teen has to maintain to qualify for the discount.
Work with an experienced insurance agent to find other ways that you can keep your teen insured without dramatically increasing your premium. You can also visit websites like http://www.martininsurancecompany.com for more information.