Best way to lower your auto premium when you have a teenage driver

mike crowley

Why is it so expensive?

Insurance premiums for teenage or young drivers is outrageous, but insurance companies aren’t just doing it to punish parents. The data shows that teenage driver’s are more likely to be involved in auto accidents and the severity of those accident are much greater. To learn more about why it is so expensive visit here.

It is extremely important you add your teenage driver to your auto insurance policy to make sure you have the necessary coverage if they get in an accident.

Ways to lower your Auto Premium

The best way to find affordable auto insurance premiums for when you are ready to add your teenage driver to your policy is to be prepared.

Driver’s Ed

Each insurance carrier is different but most of them will offer a credit if your teenage takes driver’s education. In the old days it seemed that every high school offered this program but today’s day in age it is getting harder and more expensive to enroll your student in this program. I encourage you to do the research to find the best place to take this course.

Accident Prevention Course

This goes for all driver’s, not just young ones. Accident prevention courses that are approved by New York State have become so much easier to accomplish. No longer do you need to spend 6 hours on a Saturday sitting in a classroom. You can complete this course online over a 30 day time period. If your insurance premiums are high, this is the easiest solution in getting them lowered.

Good Student

Just like driver’s education, good student discounts are also offered with most insurance carriers. The student carrying at least a B average qualifies for this credit. Here is a great example of how to plan ahead and make sure they keep their grades up.

Buy a used vehicle

Safety, Safety, Safety. As a parent myself I understand that Safety is probably the most important thing when it comes to getting a car for your teen to drive. The problem is, the newer the vehicle is and the greater the cost of the vehicle, the higher the insurance premiums will be.

Look for a safe and reliable used vehicle that you might not need to carry physical damage coverage on because you paid cash for the vehicle. Also make sure when you decide if you should carry physical damage coverage that you look at the expenses associated with it.

Here is an example of what I mean:

Vehicle is purchased for $3,000

Collision Deductible is $500

Insurance cost per year to have Collision Coverage is $750

You automatically have $1,250 on the line in year 1 if the car is in an accident. You would have to pay your premium and the deductible. So the money coming back to you would only be $1750. If in Year 1 your child doesn’t have an accident you automatically jump up to about $2,000 in expense after the second years annual premium kicks in. Discussing this with your agent is crucial.

Occasional Operator

Keeping your child as an occasional operator rather than buying a vehicle and making them a principal operator is another great way to keep your premiums lower during the first few years they are licensed.

Side Note

Another thing to note, don’t be so eager to get the teenager off your insurance policy and onto their own insurance. Your insurance, your assets are still at risk even if your teenager has their own insurance as the parents policy is considered secondary. It is also considerably more expensive to do this as well.

What’s Next?

Make sure you are using an independent insurance agent who can provide options for you. Don’t know an agent or want a review of your insurance?

Click below to learn more on how to proceed.

 

Mike Crowley

Hi I'm Mike! I am the Vice President of Crowley Insurance Agency. I am here to help any way I can. Please reach out and contact me for anything you need and be sure to connect with us on social as well :)

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