The moment your child gets their drivers license and the moment they head off to college are two major events in a parent’s life. You will more than likely reminisce on how you watched them ride around on a Big Wheel as you watch them drive down the street the first time. You might think back to all the times you told your child to clean their room as they are packing up the car to go to college. One thing you may not have thought about is how all of this is affecting your car insurance rates.
Adding a Teen Driver to Your Car Insurance Policy
While adding a teen driver to your car insurance will more than likely increase your rates, there are ways to minimize the damage after you add them to your policy. The trick is knowing what car insurance discounts apply to you and your newest driver. Below are some tips from InsWeb on how to save on your car insurance.
Good Student Discount
Good grades can be a car insurance discount. If your child maintains a GPA of 3.0 or better, you could save 10-25% on your car insurance. This is one way to motivate Jr. to hit the books.
Compare Multiple Car Insurance Quotes
Each car insurance provider will review your information differently; which means varying rates from company to company. Taking time to compare car insurance quotes will help you find the best deal after you add your teen to your car insurance.
Another time to compare car insurance quotes is when your child makes the jump from high school to college. Maybe your child won’t be taking a car with them to college, allowing you to take them off your policy and lower your rates. If your child is going to an out of state college, there might be different car insurance restrictions than what you are used to in your home state.
Increase Your Deductible to Lower Your Premium
Many people may know that raising their deductibles on their insurance policy can save them money, but most don't feel the need to do this until they have added a teen driver to their policy. Once you raise your deductible, you are also raising the amount you have to pay before your insurance kicks in.
Avoid Accidents and Tickets
Here is a no brainer; if you avoid accidents and tickets, you pay less for car insurance. You will pay more for car insurance once you add a teen driver to your policy. However, if your teen driver gets into an accident, your rates will be drastically affected.
Whether you are adding a teen driver onto your policy or removing a college bound student, these simple measures can help you save hundreds of dollars on your car insurance rates. Hundreds of dollars that can be used for their books and food.