Finding the Best Insurance Rate When Your Teen Starts Driving

If you have a teenager who is just about ready to take their driver's license exam, you will most likely be a bit wary about what to expect with increased insurance rates when they hit the open road. There are a few ways you can save on insurance when adding a teen to your policy. Here are a few options you may have available when insuring a teenager.

Shop Around

Do not add your teenager to your policy without doing your homework in advance. Get price quotations from at least three other insurance companies to have an idea about how much it will cost to have your teenager insured. Take these numbers to your car insurance company to see if they quote you a price that is comparable with the other companies. If not, you may want to think about switching companies or using the information you had obtained from other companies to barter for a lower rate.

Ask about Discounts

There are several discounts available for teens when added to a policy. If you decide to insure multiple vehicles through the same insurance company, you may be eligible for a discount. Some insurance companies offer discounted rates for students who keep an A or B average in school. Your teenager would need to bring their report card to the insurance company when they are added to the policy to receive a lower rate. 

There are also some insurance companies that offer a lower rate when a teenager is signed up for a driver's safety course in addition to the driver's education course they take through their school. Tell the insurance company that your child will be driving the vehicle short distances from home, as this will keep costs lower. Make sure you ask about discounts before agreeing to add your child to your policy as you may be able to get a better rate overall.

Opt for the Right Vehicle

The vehicle your child will be driving will have an impact on the pricing of the insurance policy you will be responsible for. It is best for a new driver to use a sedan or compact vehicle instead of a sports vehicle. Do your research to select a vehicle that has a high safety rating. Consider adding safety features such as an alarm system to cut costs even further. If your child will be driving one of your vehicles, assign them to whichever one costs the least to insure if possible.

Talk to an insurance company like Senella Insurance Group for more information.