It can be a rude shock when the family teen gets their first driver’s license and the parents are confronted with outrageous rates to insure that new driver in the family. Cheap car insurance rates for young drivers can be difficult to find, but there are ways to keep the costs down.
Before any contracts are signed, parents of teen drivers should look into insurance quotes for occasional drivers who will be driving a vehicle less than half of the time. By telling their insurance agent they would like to add their young driver to their existing policy as an occasional driver, most parents will find that the auto coverage rates will be much lower than they would be if the teen was listed as a principal driver or on their policy separately.
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Parents who are considering buying a teen driver their own car need to learn how different types of vehicles can affect the premiums they will have to pay. Obviously, brand new, high-end automobiles will be the most expensive to insure. The premiums on sporty-type cars with high-performance drive train packages will also cost more to insure. Older vehicles with less value will cost less to cover and they might even be safer for young drivers as well. If parents do decide to purchase a separate car for their teen driver they should look into vehicles with modern features like automatic seat belts, airbags, anti-lock brakes and anti-theft devices that can all help to reduce the insurance premiums.
If a teen driver spends most of their time away from home at school or college, parents can tell their insurance agent the teen only drives minimum mileage and they may be entitled to a better rate on their insurance policy. If the kid is in school and is getting good grades that can help too, as some insurance companies offer discounts for student drivers with good grade point averages. Parents can also get a break on premiums if a teen driver enrolls in an accredited driving school or a certified driving course in some areas of the country.
Parents who can afford it can also get some relief on their monthly insurance premiums by raising the deductible cash amounts on their policy. If the vehicle the teen drives is not worth repairing or replacing if it was stolen or destroyed, there is really no reason to carry collision coverage other than the minimum liability coverage amounts mandated by state laws.
Teen drivers are also unfortunately high-risk drivers, and should always carry adequate bodily injury liability coverage to handle any medical expenses and legal fees that might result from an accident where they are at fault. As a general rule of thumb, most young drivers should carry at least $100,000 in bodily injury liability coverage per person and at least $300,000 per accident. The car insurance rates for young drivers may not be cheap, but they don’t need to be unnecessarily high either.
