It’s an exciting moment in every teen’s life when they get their license. It allows them greater independence, but not so much so that they don’t need to rely on your help insuring their new car. While adding a teen driver to your policy is likely to increase your insurance rates a great deal, there are discounts that can lighten the financial load. Let’s review some of the ways to save when adding a teen driver to your auto policy.
1. Teen Safe Driving Program
Some insurers offer safe driving programs for teenagers. Often, this program will set benchmarks or goals for your teen, such as traveling 3,000 miles or driving for a full year. If your teen driver avoids major or minor violations and at-fault accidents within this frame of distance or time, you could qualify for a percentage off your car insurance. Contact your independent insurance agent to see if your insurer provides this option and inquire how to enroll.
2. Student Away at School Discount
If your young driver attends school away from home and they don’t intend to bring their car, some insurance companies offer the option of temporarily lowering the cost of their coverage. Sometimes the discount requires the school to be a certain distance away from home to qualify for this discount or for the child to be a full-time student, so be sure to speak with your agent.
3. Good Student Discount
If your teen’s grade point average is exceptional, some insurers will offer a good student discount on their auto coverage. Both high schoolers and college students can benefit from this savings opportunity. To qualify, the young driver usually has to be a full-time student and maintain a certain GPA, such as above a 3.0.
4. Car Safety Feature Discount
If your teen driver is fortunate enough to purchase a car with extra built-in safety features, you can earn some savings from most insurance companies. A GPS tracker to locate your vehicle if it’s stolen or using telematics to track your driving habits can earn you a discount, as well as having an anti-theft system, electronic stability control, or auto emergency braking. Some companies may even offer a premium reduction if your teen’s car is newer than three years old.
5. Multi-Car Policy
In most cases, an insurer will offer a multi-car discount. By insuring more than one car with a policy, the costs of liability, collision, and comprehensive coverage can be reduced by as much as 10 to 25 percent, according to CarInsurance.com. You can even choose different types of coverage to apply to each vehicle, so if you believe your teen driver can benefit from extra protections, you can add riders specifically to their policy.
6. Diminishing Deductible
A diminishing deductible – also known as a “vanishing” or “disappearing” deductible – rewards safe driving. If your teen driver goes accident-free and keeps a clean driving record, oftentimes insurance companies will reduce your deductible or offer you a credit. For instance, if the policy’s deductible is $500 but the claimant has proven to be a safe driver, they may only have to pay $200 for the deductible instead of the normal $500.
While it can be expensive in some cases to add your child to your insurance, learning about these ways to save when adding a teen driver to your auto policy will lessen this burden. Shopping around with the right agency will also ensure you’re receiving the right coverage for the best price. At TJ Woods Insurance, we’re dedicated to ensuring your teen driver is covered with the right auto insurance policy while achieving the least financial impact on your wallet. If you’re in need of an agent to help cover your newly licensed driver, contact us today.
