For moms and dads, having a young driver in the house can be a trigger for a lot of very mixed emotions. On the one hand there is going to be the added freedom of having another driver who can run errands and no longer has to be driven back and forth to school or extracurricular activities.
On the flip side, numerous parents fret about the extra costs involved when it comes to adding a teen to the insurance policy. That is before even mentioning the accompanying expenditures of gas and maybe even an additional car.
A number of elements affect all of this will cost. The cost of insurance almost always goes up when a young driver is included because teens are inexperienced and higher-risk drivers. Buying insurance for teen male motorists is more expensive than females. While you can’t do much to change this, there are numerous ways for parents to cut insurance costs.
Here are three things you can do right away to begin saving some cash on your teenager’s auto insurance.
1. Check out the good student discount.
The grades your teenager makes can decrease the amount of insurance you have to pay. This is something you may have to request, so if your new teen driver is earning a minimum of a B average, this may be available. Before you call, ensure that you have proof of the student’s scholastic record. It may be in the form of a transcript or a document signed by a school administrator to confirm those grades.
2. Think about utilizing telematics.
Telematics are electronics that record and report on a driver’s practices. That details can be used in numerous ways; it allows insurer to reward drivers for good driving behavior, and it also lets teen drivers (or their parents) get feedback on their driving, which can help them make better choices behind the wheel. These devices usually track 4 elements: tough braking, fast velocity, miles driven as well as nighttime miles.
3. Do not purchase brand-new vehicles.
While the majority of teenagers certainly dream of a shiny new car to begin their driving career, it’s not the very best financial solution in most cases. The fact that teens cost more to insure is because these inexperienced drivers have the tendency to have more accidents, so purchasing a brand-new car is going to indicate greater repair costs in the event that they have a fender bender. Purchasing an older car that has excellent security ratings will have lower monthly car payments and it will cost less to insure.