5 Tips to Cut Insurance Costs for Teen Drivers

When it comes to auto insurance, teen drivers will usually contribute to much higher insurance premiums. If you are the parent of a teenager that is about to start driving, there are a few things that you can do to lower insurance costs. Here are a few tips to cut insurance costs for teen drivers.

1. Give Them an Old Car

One of the best ways that you can save money on insurance costs for your teenage driver is to give them an old car to drive. While they may not like the idea of driving an older car, it can potentially save you quite a bit of money on your car insurance premiums. With an older car, you can get liability only coverage. This means that you will not have to pay for collision or comprehensive coverage on the car insurance. This is going to be the vast majority of the premium cost. If your teenager gets in an accident, you know that the liability aspect will be covered for the other driver.

2. Safe Cars

You might also want to consider getting a car that has high safety ratings for your teenager. Safe cars are going to have lower insurance rates associated with them. In addition to having lower insurance premiums, you will feel safer as a parent because you are giving them a safe car to drive.

3. Teenage Programs

You need to ask your insurance provider if they offer any programs for teenagers that will allow them to get a discount on their insurance coverage. For example, if they complete a driver's education course that is certified by the insurance company, they may be able to significantly lower their insurance premiums. Sometimes, the insurance company will have a basic class that they can provide to the teenager as well. In some cases, they might only have to watch a video to gain important safety knowledge that could lower their rates.

4. Multi-Line Discounts

Instead of having your teenager go out and get their own insurance policy, you might want to consider adding them on to your coverage. With most insurance companies, if you have multiple lines of insurance with them, they are going to give you a significant discount overall. Therefore, if you have your homeowner's, life and auto insurance all with the same company, this could allow you to save some significant money.

5. Raise the Deductible

You might also want to consider raising your deductibles on your policy. If you have a low collision or comprehensive deductible, consider raising it to $1,000 or $2,000. In most cases, this will significantly lower your insurance premiums. This can be a risky strategy because you are essentially betting that your teenager is not going to damage the car. If they do end up getting in a wreck, you are going to have to come up with the entire amount of the deductible at once.