It’s scary enough to let your teenager drive. But now you have to face the insurance bill too. There’s no way around it. Kids should learn to drive while parents are still calling the shots. There are some things you can do to reduce the costs of insuring your teenage driver.
Don’t let your teen get their license until they’re responsible in other areas of their life. Someone who is irresponsible is more likely to drive a car irresponsibly and probably have tickets or accidents. Also, a responsible teen is more likely to get good grades in school. If they can maintain a B average, most insurance companies will give them a discount.
Have them keep their learner’s permit longer than the law requires. Many insurance companies will not charge you extra while your teen is driving with a learner’s permit under your supervision. Many states require too few hours of supervised driving for a teen to learn well. Delaying getting the license will save you money and allow them more practice, so they’ll be a better driver when they do get their license.
Have your teen listed as an occasional driver on your car. When the teen is the primary driver of any car, the rates go up. This will only work if you have fewer cars than drivers in your household. If there are three cars and three drivers, they’ll assume that the teen is the primary driver on one of the cars.
Have your teen drive the oldest car, preferably one that’s not worth a lot of money. Pairing the highest risk driver with an expensive car will raise your premiums. And if you can afford to replace the car in the event the worst should happen, you can skip the collision and/or comprehensive coverage.
Have your teen pay half of the insurance premium. There are things that your son or daughter can do to reduce insurance costs now and in the future, like driving safely and maintaining good grades. They’re more likely to do these things consistently if they have a stake in the costs.