A new driver in the family is exciting. However, it can also be the source of stress. Aside from safety concerns, car insurance costs increase significantly.
Teen crash rates are the highest of any age group, making them the riskiest group on the road. Adding a teen to the family car insurance policy can sometimes double the payments.
“While car insurance can get pricey for teens, discounts are available,” says Dustyn Shroff, Vice President of GreatFlorida Insurance. Below are some discounts available to teen drivers to cut auto insurance costs.
Good Grades
Good student discount rewards students financially, for doing well in school. According to DMV.org, statistics show that students who get good grades are less likely to get into a car accident, making them a lower risk for car insurance companies. A Good grade discount varies among auto insurance companies, however most require the following:
The student is under 25 years old
Full-time enrollment at a high school or college/university
Maintain at least a B average (3.0 grade point average), or be on the honor roll or Dean’s List.
Show other accepted proof of good performance, if home-schooled.
Score in the upper 20 percent on one of the six standardized tests.
Some insurance companies will extend the discount for a year after a student completes school.
Driver’s Education
Safety is the top concern for parents of a teen driver. The Centers for Disease Control and Prevention (CDC) report, motor vehicle crashes are the leading cause of death for U.S. teens. Driver safety courses teach new drivers rules of the road, as well as offer teen drivers savings.
Students who complete a driver training program, are eligible for a discount. DriversEd.com reports drivers can earn a discount of up to 10 percent after completing their course. Some insurance providers have special courses where students can earn over 15 percent savings.
Electronic Device Technology
Several auto insurers now offer electronic devices to monitor teen driving habits. The devices gather information such as, the number of miles driven, speed, the number of hours on the road and how often the brakes are applied hard. Drivers who meet the standards can save up to 30 percent on premiums.
“These devices are great for safety and savings,” says Buck, of GreatFlorida Insurance.
Distant-Student Discounts
If your student driver, resides at a school at least 100 miles from your home and only occasionally drives your vehicle, you could qualify for a discount on your auto insurance.
Car Selection
While most teens dream of receiving a brand-new car for their 16th birthdays, the reality is, they will most likely be driving something used. A used car will save you money to insure instead of insuring a new one. Large trucks and SUV’s cost more to insure, particularly if they have a four-wheel drive option. Some car features that can save money include; anti-lock brakes (ABS), air bags, adaptive cruise control, lane departure warning, collision preparation systems and anti-theft devices.
