Having a teenage driver can mean extra costs on your car insurance. Because they are usually viewed as a higher risk, policy providers charge extra for that risk. You can keep the extra costs to a minimum with these four tips.
Encourage Good Grades
Insurers will offer good student discounts. If your teen is averaging As and Bs, he or she is less likely to be out on the road causing trouble. Your teen is viewed as being less likely to be involved in an accident. It's important to encourage good grades and then provide proof with report cards to insurance companies.
This discount can stretch into college. It's worth discussing the proof you need with your insurance company.
Consider Driver Safety Programs
If your teen is willing to do an extra program after passing their driving test, insurance costs may be lowered. This is something to talk to the policy providers with, as not all will be able to offer discounts and others may only do it if certain programs are done. Each insurer will have their own requirements, so find out about yours specifically.
Temporarily Remove Them From the Policy
If your teen is away at college and doesn't have access to a car, it's worth looking at removing them from the policy temporarily. Otherwise, you're paying for something that you're not using. Most insurers will allow you to add them back to the policy when required, so you only pay the extra when you need it.
Check with your insurer to find out if they offer a time away policy and how many miles away your teen's college needs to be. Bankrate states that 100 miles is a typical requirement for this type of policy.
Increase the Deductible
When you have exhausted your other options, look at the deductible on the policy. This is the amount you are willing to pay out before the insurance company covers the cost. With a teen driver, a higher deductible will lead to a lower policy. However, you will need to make sure you have this money in the event you or your teen has an accident where you are at fault.
Car insurance costs are already high. With a teen driver, you face paying much more. With a few easy and very legal tweaks, you can help to reduce your overall policy cost without sacrificing driving time for your child.
For more information, contact a local company like Green Light Auto Insurance Specialists.