The idea of cheap car insurance for teens may feel a bit like an oxymoron. Teens present much greater risk for insurance companies and may result in startling premium increases — $1,500 per year, on average, according to NerdWallet.
The reason teen drivers are so expensive is that car accidents are the leading cause of death among drivers between the ages of 16 and 19 in the U.S. making them a much greater financial liability for insurance companies than any other age group. The good news is that there are things you can do to decrease your premiums – even if you have teen drivers to cover.
Compare Costs between Separate Teen Policy or Adding Teen to Existing Policy
The mileage on this will vary from one insurance company to the next. You may find that it is cheaper to purchase a separate policy for your teen driver than to have your teen covered on your own policy. Some will require you to cover the teen driver on all vehicles in the household which requires you to include them on your policy. Some will allow you to include your teen on an individual policy which may be much cheaper if your teen’s car is older and has the right safety features. You may even qualify for bundling discounts if you purchase insurance for your teen from the same company. The best thing to do is to compare – and BOLT can help you find cheap car insurance quotes for your Teen.
Encourage Safe Driving
Some insurance companies offer discounts for going so long without filing a claim. Additionally, if you allow your teen’s driving to be monitored by the insurance company, safe driving habits can result in a reduction of rates. Also, set a good example to encourage better driving habits from your teen. Believe it or not, they are watching what you do behind the wheel. Put your cell phone away, obey the speed limit, and avoid aggressive driving behaviors. You’ll be surprised by how likely they are to do the same things when they drive.
Explore Teen Driver Discounts
Many insurance companies will provide steep discounts in certain situations. When it comes to cheap car insurance, many companies will extend specific discounts to students who do some or all of the following:
- Get good grades in school.
- Take driver’s education or approved defensive driving courses.
- Have low annual mileage.
- Leave their cars at home while away at school.
The more steps you take now to actively reduce your teen’s insurance premiums the more money you’ll save over the next few years while your teen is learning the ropes and gaining valuable experience behind the wheel.
Get multiple quotes and cheap car insurance for teens by completing our comparison form.