Teen Driver Premiums: Tips For Saving Money

As the parent of a teen who is approaching legal driving age, you've probably started exploring the change in your insurance that's coming when your child gets their license. Teen drivers are among the most expensive to insure, so you'll find that the policy premium increase is significant. However, that doesn't mean that there aren't things that you can do to help moderate that change. Here's a look at some of the things you can do to help reduce the effect your new teen driver has on your car insurance policy.

Safe Driver Discount

In some states, teens can get their driver's license even without having taken a driver's education course. Provided that they complete the required number of hours behind the wheel under their learner's permit and pass the licensing exams, they don't need a completion certificate for driver's education.

However, you may find that taking driver's education gives you the opportunity to reduce your teen's auto insurance premium. Many insurance carriers will provide you with a safe driver discount for teenagers who willingly complete driver's education courses. This may save you a percentage of your annual premium for your teen's coverage.

Good Student Discount

Another ideal discount to take advantage of for teen drivers is the good student discount. Most insurance carriers extend a good student discount to teenagers with a specific grade average. You'll have to provide a copy of your teen's report card every quarter, but so long as he or she meets those grade average minimums, you'll get a percentage discount on the overall premium. Ask your insurance provider about any good student discounts that are available for school-age drivers that are covered under their parents' policies.

Real-Time Monitoring

Some parents hesitate to consider real-time monitoring of their children's driving habits, but you might find that electronic monitoring of your child's behaviors will allow you to reduce your insurance premiums.

Many insurance companies offer discounts and actual driving behavior ratings for teen drivers. If your teen is a responsible, safe driver, you'll likely get a significant discount on your overall premium for your child's coverage.

When it comes to covering teen drivers on auto insurance, everyone knows that it can get expensive. However, as you can see, it doesn't have to. Consider taking advantage of these discount opportunities and ask your car insurance carrier about other discounts that might help. You may be able to reduce your premiums with multi-car, multi-line, or other associated discounts as well.

For more information on car insurance, contact a company near you.