Best Car Insurance for Teens: What to Look for
Is your teen about to receive their graduated driver’s license? If so, you’ve probably started thinking about young driver insurance, and like most parents, you probably have a lot of questions.
Perhaps the biggest concern about teen car insurance rates is the cost. Teens are new to driving, which means insurance companies aren’t able to pull driving records when calculating the cost of a policy. Instead, they refer to statistics about teen driving, and statistics show that teens not only file more claims than other age groups but also file more expensive claims. This means insurance companies put themselves at greater risk when insuring teens and, as a result, need to charge higher rates.
But cost isn’t the only question when it comes to finding the right insurance for your teen. You also want to be sure the insurance you select is going to provide comprehensive coverage to give you peace of mind (without driving up your expenses).
Finding the Right Policy: Where to Start
Research required coverage
Each state has its own minimum car insurance requirements. Arizona, for example, requires a minimum of $15,000 in property-damage liability, $25,000 bodily-injury liability coverage for one person, and $50,000 for two or more people.
However, you may need to increase your coverage depending on a number of factors, such as the worth of your car or the number of assets you need to protect. To help you find the right level of coverage, most insurance companies provide free coverage calculators, such as these from Liberty Mutual and Geico.
Get quotes from different carriers
With an understanding of the level of coverage you need, you can start gathering car insurance quotes from different companies. There are many online resources available today, like this comparison tool, that make it quick and easy to narrow down the policy that’s right for your family.
Cut Down on Costs With These Tips
LOOK INTO DIFFERENT DISCOUNTS
Most insurance companies offer discounts to help you lower your costs, with some of the most common including:
Good student discounts: Full time students with good grades (usually a minimum 3.0 GPA) can receive up to 25% depending on the insurance firm.
Defensive driving discounts: Teens that take a defensive driving or an extra driver’s education course can save an average of 10% on their auto insurance rates.
Low-mileage discount: Ideal for teens who won’t need to drive a lot, pay-as-you-go insurance plans only charge for the number of miles driven.
RAISE YOUR DEDUCTIBLE
Raising your deductible is a simple way to lower your insurance premiums. However, keep in mind that teens are more likely to get into accidents, and if they’re at-fault, you’ll have to pay the out of pocket amount. Before increasing your deductible, ensure you’ll be able to afford it.
CHOOSE THE RIGHT CAR
Teens may dream of the latest sports car, but vehicles with high price tags or low safety ratings could drive up your insurance costs. Consider purchasing a lightly used vehicle that has as many modern safety features as possible.
ADD YOUR TEEN TO AN EXISTING POLICY
Parents have two options when helping their teen get insurance coverage. They can help their teen purchase their own policy or add them to an existing one. In most cases, adding your teen to your current policy is the cheaper (and easier) option.
Reduce your insurance rates and keep your teen safe with Stop and Go Driving School. Our driver’s education courses give your teen the skills and knowledge they need to avoid the issues that can cause insurance costs to go up. Reach out today to learn more.