Teen Troubles

If you have a teenage driver in the house, you know what it does to your auto insurance costs. Insurance companies consider young, inexperienced drivers high risk and charge accordingly. If you’ve previously enjoyed cheap insurance rates, you may no longer qualify for a discounted policy once your child gets his license.

The first thing to remember is that insurance rates vary dramatically from company to company. Don’t just go with the first quote. Assume that there’s a better deal out there because there probably is.

There are several ways to lower the insurance rates for young driver. The most important thing is for the teen to keep a clean driving record. This means no accidents, no speeding tickets, no parking violations.

If you’re going to buy a new car for the teen, make sure it has great safety features. Not only will it protect his life, but it’ll also lower the insurance premium. Do not, under any circumstances, give in to your child’s pleas and buy a sports car. These are taxed much higher than other vehicles. Second-hand vehicles cost less to insure than new ones.

Another way to cut insurance costs is to increase the deductible. A higher deductable means lower monthly premiums.

Most parents automatically add their child to their own insurance policy. This may be the easiest thing to do, but it’s not necessarily the cheapest. A stand-alone policy for the teen can be better value for money, especially if you drive a luxury car. Check out insurance companies that specialize in teen drivers. Allstate, for example, has special teen driver program and good rates on teen car insurance. Use a comparison site to get quotes from several different auto insurance companies before making your decision.