Don’t Let Your Teen’s Car Insurance Break The Bank!

teen driverWe all need car insurance because unfortunately it’s a state regulated law that we carry it. For the risk-taking types, automobile insurance may seem like another waste of money and they may be right with the amount of premiums paid each year for insurance that you may only use once.

The difference between health insurance and car insurance is substantial – you can control your own destiny with your health but cannot control the road. Therefore, if someone hits you, but you lack insurance, you may still be liable for expenses.

All in all, it is better to be safe than sorry, especially for new drivers and teenagers taking to the streets for the first time. In addition to the safety factor, relative auto insurance costs can actually be substantially lowered if you use a couple of well-known techniques.

How to Save With Teen Insurance

Know Your Car

If you have a lease for a teenager you are required to abide by certain insurance standards because you do not actually own the car. Eliminating this outlier, if you have an older car it may save you to drop comprehensive coverage entirely for teenage drivers. You may end up paying more in premiums than what the car is actually worth. For example, if you own a 2000 Honda Civic with 160,000 miles than the car is basically worthless.

Paying premiums for a car like that will just waste your money because if an accident occurs the car will most likely be totaled anyways. That saved money could go towards a new car, instead of the Kelley Blue Book price the insurance company will give you money for.

Get Good Grades

There are a ton of benefits to getting good grades if you take advantage of the perks that go along with positive academics. Most insurers offer a big discount for young drivers who maintain a B-average in high school or college. If your child is working hard in school and obtaining good grades as a result, you should cash in on the immediate success.

Distance Could Be a Good Thing

A parent’s worst nightmare is their baby going off to college 1000’s of miles away. But now, there are benefits to a college student who attends school over 100 miles away from home. If this is the case with your child, most insurers will give you a break on car insurance for a vehicle that is assumed to be home (don’t tell them I said that). Big breaks on your premiums will result from vacant college students.

Don’t Purchase a Hot Rod

Safety ratings do matter when insurance companies evaluate your teenager’s application. If your teenager is driving a known speedster or muscle car like a Camaro or Mustang, you may be in trouble with the insurance company’s premiums. Make sure to purchase a safe, reliable vehicle that tells the insurance company you’re a responsible human being.

Add Them to a Plan

Bundling packages are prominent in all kinds of insurance. If you have home and car insurance for other people in your family, most insurance companies will give you a break on teen drivers that are added to an account. Add-on prices are always lower than first-time purchasers because the big insurance companies what to know they will be sucking your money for years to come. I would recommend looking into some of the larger insurance companies for these deals.

Customization is Key

If you have a 16 year old male driving a Mustang you may find higher rates at a company like Geico, where Allstate provides a cheap rate for the same insurance. Many of these insurance companies are subjective, so it’s best to shop around for the best deal.

This article was written by Matthew Hall. Matthew has felt the burden of high car insurance costs on his wallet. In an attempt to minimize his costs, Matthew spent months researching little known ways to improve his premiums and without sacrificing proper coverage. He’s also a professional writer for CFL Insurance Agency and you can view more of Matthew’s work by visiting his Google+.