Junior’s at that age. They’re in high school, they’re starting to develop a social life, and…they’ve learned to DRIVE. 😱
Once they start venturing out on their own, there’s only so much you can do to protect them, but planning ahead for oopsies is one of those things. But with insurance policies almost doubling once you add a teen driver, how do you do that without breaking the bank?
Here are Five Fast Facts about saving money on your teen’s car insurance:
- 🤔 Factor This - There are a lot of factors that determine how much you’ll pay for your teen’s insurance, and some of them depend on which state you live in. Things like the cost of the car they’re driving, your deductible, the level of coverage, and your teen’s gender are all things that insurance companies use to set the price. We’re not saying which gender pays more, though. 😉
- 👍 Performance Discounts - Getting good grades in school is not only helpful for college and getting a good job, but it can save you some bucks on car insurance, too! Most insurance companies offer some sort of “good student discount” even for college students, and many offer discounts for passing safety courses or “spying” apps to monitor for good behavior while driving. Why yes, Big Brother, I’d love for you to watch me all the time!
- 🔍 Bulk Up - Like the Costco of car insurance, paying in bulk saves you money! Pay in six- or twelve-month increments to minimize your cost. Also, see if your insurance company will bundle multiple people or your home and auto together. The more of your business they can capture, the more likely they’ll be to shave off a few percent. Shop around for the best deals, too.
- 🙏 Forgiveness Is Divine - Insurance companies are pretty touchy when incidents occur. To help avoid rates skyrocketing for one tiny little fender bender, look at an accident forgiveness policy. It’s kind of like a get-out-of-jail free card every couple of years, just in case that fender does get bent.
- ☂️ Liability And Umbrellas - Rather than full coverage for bumper-to-bumper protection, consider a liability-only policy. If your teen does get into a nasty accident, this will protect you for the wages and medical bills for the victim, but that’s about it. In exchange, you pay a lot less. You can also get a personal umbrella policy, which provides an extra layer of coverage if you max out your car insurance limits. You know, like if your teen rear-ends a Lamborghini.
🔥Bottom line: Probably the most important thing you can do is talk with your teen! Have a frank conversation about the level of responsibility they are taking on every time they get behind the wheel of a car. If they understand what’s at stake – for them and for you – then hopefully they’ll be more careful and make better choices on their own. And really, isn’t that the best thing you could hope for?
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