Getting a drivers license is one of the most exciting times for a teenager. Parents are anxious for many reasons during this time. Adding a new teen driver to the household policy can increase insurance costs dramatically, not to mention the ongoing concern for safety. Unfortunately, car accidents are the leading cause of teenage deaths. In 2008 AAA found that teen auto accidents costs consumers more than $34 billion. While keeping your kid safe, what do you do to keep premiums cheap?
- Multi-Policy Discount: Having your homeowners, and auto policies under the same umbrella can bring some savings. With most insurance companies, the longer you are a policy holder, the better you rates can be.
- Good Grades: If your student is getting good grades, you may be able to catch a break on your insurance rates. Check with your insurance company to find out if they offer a discount for having good grades.
- Liability Only: If the household hooptie is the designated vehicle for your teenager, consider a liability only policy. When he value of an insured vehicle is minimal, liability insures the other party is covered if anything happens.
- Higher Deductible: Raising comp/coll from $500 to $1000 will substantially decrease change your your premiums.
Other things to consider are discounts for safety features, and going green. In addition, encouraging safe driving habits is vital to keep the cost of auto insurance low overall.
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