Many times parents of young drivers experience a little sticker shock when it comes to auto insurance. Lets start by saying...there IS a reason for this and no matter how great your kids are the statistics are not in their favor. The likelihood that a teen driver will receive a violation or be in an accident is higher than most "seasoned" drivers. However, there are some ways that you can lower the boom of that premium by implementing some pro active measures. Trust me, in the end the savings are out there you just have to grab on to them. Now if your hope is to have a full comp/collision policy for junior for $60 then you are in Dreamy Dreamtown...its not going to happen. However if you want to save 5% here and maybe 10% there then this is the blog for you. Also note that some of these discounts apply for adults so pay attention for ways YOU can cut costs as well.
Good Grades
The first discount that you can get for you new driver is a good grades discount. The type (A's, B's) of grades that are required varies within each company but you will save a pretty good chunk of change. Most carriers require brokers to show a report card or get a school administrator to sign off on the grades, but this is a great place to start getting those savings.
Safety Features
The second way that you can save some green is to make sure that your teen's car has as many safety features on their auto as possible. Airbags, anti-lock breaks, alarm, etc will make a difference when it comes to premiums. Make sure you articulate this to your broker when you are describing your auto. Whenever we are running a quote we have a checklist of safety features that we want to ask about to give a better chance of a better rate.
Defensive Driving
This is a good one for drivers young and old. By taking a defensive driving course you are communicating a increased driving awareness. This can make a huge dent in your premiums and is as easy as going to a website or taking a Saturday morning course. I have found online courses for $20 and you will make this back 10 fold in premium savings. Make sure you keep the certificate of completion to prove that you took the course
Shop Around
If you haven't shopped your insurance in a while...what are you thinking? There are a lot of companies out there that change their pricing fairly often. Make sure you are with a company that is going to stay competitive for your business. Even if you have a broker who has access to many different companies how do you know that you are actually being shopped around. I give a written handout of all the companies that we shopped it with and show them where they actually stand. Take a little initiative and find a broker that you trust to help you make the right decisions.
Reward Safe Driving
The best way to save money is to keep as much off your record as possible. One great way to do this is communicate the importance of safe driving with your teens and try rewarding them for safe driving. If they are on your policy..they affect your driving record and you want to protect yourself at all costs.
In the end..its expensive to have teen drivers, but by taking certain steps to lowering your payments you can rest easy. While the odds are not in your favor statistically for teen drivers by educating yourself and finding a good broker you can cut costs and keep more money for the non-insurancey things.
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