When shopping to insure a teen driver, planning ahead can decrease rates on auto insurance. Various factors determine the price of car insurance for teens. Certain details about the teen driver as well as the insured car affect auto rates for teens. A good student discount is only one of several ways to lower insurance costs for teenagers. The following list will help families and parents make decisions that save money when shopping for young driver insurance.
Teen Driver’s Education Class
Most insurance companies offer a lower rate to teen drivers who have taken a driver’s education class. Although driver’s education classes do cost money, classes save money on auto rates in the long run. Taking driver’s education as a high school elective is usually less expensive than attending a private driver’s education class.
Good Student Discount
If a teen has a B average or at least a 3.0 GPA, many insurance companies offer up to a fifteen percent discount on car insurance for teens. The good student discount may apply for both high school and college students depending on the individual insurance carrier. When choosing an insurance company for a student who makes good grades, families may want to select a company that offers a good student discount at both the high school and college level.
Opting Out of Collision Insurance
If a teen is driving an old model or clunker car that is paid in full, collision insurance may not be a worthwhile purchase. Families may want to compare the blue book value of an old model car to the cost of collision insurance for the car. Although collision insurance for a clunker car won’t cost much compared to a new car, families may still choose to save money by not purchasing collision insurance.
Sports Car & Horse Power Factor
Higher horsepower rating equals higher insurance premiums. Car insurance for teens will cost more if the car is a sports car with extra horsepower. If families are looking to save money on rates for auto insurance, they need to pay attention to the type of car they allow a teen to drive.
Car Theft Rate
Before choosing a car that teens will drive, families may want to check if a potential car is near the top of the list of frequently stolen cars. Stolen car ratings vary by state and sometimes by city. Cars with a higher theft rate will cost more to insure. Consumers can check the most common stolen cars by state at The National Insurance Crime Bureau’s website.
Saving money on car insurance for teens can be accomplished in a number of ways. Car choice affects insurance auto rates as well as a driver’s education course and a good student discount.
Kelly Pfeiffer - Kelly Pfeiffer teaches Positive Discipline workshops to parents and trains child care providers on various child development topics.
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