How To Reduce Auto Insurance Premiums For Teen Drivers

Teens are fresh behind the wheel, and many get their license right when they turn sixteen. It can be a benefit for parents because they don’t have to drive their kids around anymore, but it can also be a huge burden because the rate of auto insurance premiums for teens can be through the roof. If there are any measures you can take to decrease your teens’ premium, you will want to take advantage of them, because they can have a huge impact on the total cost of insurance for your family and help save you a lot of money.

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 Generation to Generation

 One of the best ways to reduce auto insurance premiums for teens is to give them an older car. Insurance for new cars is always going to be higher than that of an old junker, especially so for new drivers. Although they may want that brand new mustang for their sixteenth birthday, you may want to hold off on getting it for them until they graduate college, because premiums for a teen driver on an expensive car are going to cost a fortune.

 If your car isn’t worth very much you will also be able to drop your collision coverage, which is a huge chunk of an insurance premium. If your car is newer and worth a lot, you will probably want to have collision insurance, especially if the person driving it doesn’t have a lot of experience. If you haven’t bought a car for your teen yet, make sure you call your insurance company and get a quote on how much the insurance premiums will be before you decide to purchase a car, because the price can vary a lot depending on the make, model and year.

 Ask for Discounts

 Another way to save money on auto insurance premiums for the teens in your family is to ask about discounts. Some insurance companies have discounts on insurance premiums for kids with good grades. You can also try to get more discounts on premiums by driving an environmentally friendly hybrid car at most insurance agencies.

 Drive Safe

 An obviously big way to save on insurance premiums for teens, and for anyone, is to drive safely and not get in any accidents or get any speeding tickets. Speeding tickets and accidents can increase your premiums dramatically, and will completely wipe out any other savings that you have tried to do. So if you’re only going to do one thing to lower your premiums as a teen it should be to drive safely and follow the speed limit. Because no matter how good your grades are or how little your car is worth, your insurance premiums will still be high if you are getting into a lot of accidents or getting a lot of speeding tickets.

 As a parent of a teen, chances are you are either paying for your teen’s insurance or contributing to the payments. Since you don’t have control over your teen’s driving habits, there are still a few ways that you can help lower your teen’s insurance premiums. One thing that you can do is to use one insurance company for all of your policies, which includes home, auto, renters, life, etc. Most, if not all, companies offer discounts for people with multiple policies to promote customer loyalty. So don’t fret if your teen’s insurance premiums look shockingly large at first, there are ways to lower them. If you have more questions about lowering your insurance, try calling your insurance agent.

 Stephanie Wilmsmeyer is an auto insurance agent for State Farm in Columbia, Mo. Find her on Google+ and find out what she can do for your auto insurance policy.

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Tahir Ismail has designed Peacepark.us to allow guest bloggers to post their unique, interesting and informative content for peace park readers. He does blogging himself and contributes to several blogs including peacepark.us

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