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My Teenager is Making My Auto Insurance Go Through The Roof

By January 23, 2020 May 11th, 2020 Personal Insurance

It is that time and season in a family’s life when their beloved child turns 16 and gets their driver’s license. It is an occasion for tears of joy, and tears of disbelief! Parents can feel overwhelmed at the many changes occurring within their home and family dynamic. One of the issues that parents face among a multitude of other issues pertains to auto insurance. When it comes to auto insurance with a teen driver, there are a few things a family can do to bring down the cost. It is also a great idea to discuss driving safety and responsibility. Planning ahead can reap big benefits. Here are a few tips to help manage the cost of adding a teen driver:

Good student discounts.

One of the ways to save money is if your child has a 3.0 or higher GPA in school. Insurance companies like to reward students for doing good in school so encourage your child to get A’s and B’s and it will benefit them while also providing a discount on your policy. Each auto insurance carrier is unique in the percentage savings they offer for good grades but at this stage; it is important to take advantage of all possible discount opportunities available. Progressive, Travelers, Safeco, and Mercury offer helpful tips when it comes to adding your teen to your policy.

Away at school discount, distant student discount.

Another type of discount applies to students away at school without their car. Many times, colleges and universities require freshman to live on campus their first year and the student, therefore, does not need their car. Sometimes, the location of the college is such that public transportation makes it easy for students to get around without their vehicles. If a student is over 100 miles away from home attending school and does not have their car with them, parents can typically save on their auto policy for this scenario.

Driver safety course discount and early quoting.

In addition, if a child completed an approved driver safety course, they will receive an additional discount on insurance. This discount is in addition to the good student discount. Another way to keep costs as manageable as possible is for the family to purchase a vehicle for the child that is NOT a sports car, NOT a convertible, and NOT a 4 wheel drive. We encourage families to narrow down to 2 vehicles they are seriously interested in purchasing for their child and then ask for that vehicle to be quoted onto their existing policy. This gives estimated pricing ahead of time and many families are surprised at the difference of cost between their vehicle choices. A little planning can make a big difference when teen drivers are in the picture!!!