Insurance Discounts for Teen Drivers
When your teen gets his or her license, it is an exciting time. There is a new freedom that they will be given. However, this freedom can bring on a new cost to your family. After adding a teen driver to your policy, you will notice that your premium will increase significantly. Teenagers are among the highest-risk drivers due to their inexperience behind the wheel. The good news though, there are savings opportunities that are geared specifically toward young drivers!
- Good student discount—car insurance companies offer discounts for full-time students who maintain good grades. It’s also common for these companies to grant discounts until they are 25 years old! If your teen has good grades you may want to call your agent to ask about the good student discount. Some companies may require you to submit proof of good grades.
- Enroll in a safe driving course—many insurance companies promote driver safety courses to train young, inexperienced drivers on the rules of the road and to provide them with the training to keep them safe. At-fault crashes on a teen’s record can cause rates to increase a lot. Upon completion of the training, the driving school will provide a certificate that can then be given to your agent.
- Distant student savings—if your teen driver moves away from home to attend college and doesn’t take their vehicle, they might be eligible for a lower rate. This type of savings comes in the form of a distant student discount, for some companies. For other companies, the status of the driver will say “away-at-school” which can decrease the premium. Your teen usually must be a certain distance away from home. This is another discount that can be added to the good grades discount which can save you a significant amount of money.
- Low-mileage savings—this discount is like the distant student discount, if your teen driver drives a low number of miles each year, then usage-based insurance might be a good option.
- Consider the teen’s car—the make and model of the vehicle can have an impact on your insurance rates. When buying a vehicle for your teen, and wanting the lowest rates, an older sedan could be more economic than a newer vehicle. But remember, older vehicles may lack safety features which could lead to a higher premium. It’s recommended that you get separate quotes for the vehicles that you’re considering buying before deciding. Be sure to list your newly licensed teen as the driver to get the most accurate rates.
- Install a device on their vehicle or download a telematics app—a telematics device/app from your insurance company may help you monitor their driving habits and could get you a discount as well. This device/app gathers driving data such as the rate of braking, average speed, and the time of day the vehicle is driven. Allstate, Geico, Progressive, and Nationwide are companies that offer this type of discount.
Overall, having a teen driver on your insurance policy is expensive. We recommend these tips to help save you money. As always, contact your agent to find out their company discounts for teen drivers and it may not be a bad time to start shopping around.