Reducing the Risk of Accidents and Other Ways to Reduce Teen Driver Premiums

obligatory "new car shot"

Getting the first driver’s license is a major milestone in any teen’s life. Even if they don’t have a car of their own to go with it, the driver’s license is another step into the adult world. It’s a major milestone for parents too. Besides the worry of them having an accident, there are a million other dangerous things that can happen on the road.

Add to this stress the financial cost. Every kid who gets a license expects to drive sometime, and getting behind the wheel means getting insurance. For those with their own ride, this need will be obvious. Part-time drivers will also have to be insured. As you might guess, insuring a teen is expensive due to the increased risk. Fortunately, there are ways to reduce the cost of insurance by reducing the perceived risk of an accident and reducing actual damage in case of an accident.

Vehicle Selection

New cars are exciting, and getting one offers several benefits. Everything is still under warranty, there is little worry of engine trouble, and every year brings more optional safety features. The higher the value of the car, however, the higher the cost of insurance. Any car that is financed will further require collision insurance.

Saving money by purchasing an older model car will also save on monthly premiums. Another idea is to purchase a new car for an adult in the house and list the teen as a part-time driver on the oldest car. Be sure to ask the agent about which drivers are being covered in which cars.

Extending Driver Education

The discount for taking a driver’s education course is 15 percent for all providers, and everyone knows that one way to reduce the impact of a speeding ticket is to take another state-approved course in driving. Getting a discount for teen drivers can also be accomplished with extended education. These classes can be expensive, and they must be led by a state-approved instructor who includes time behind the wheel in the curriculum.

Insurers can vary in their specific rules on an acceptable class, but the discount will be secondary for many parents anyway. More education means lower risk of accidents and less stress for parents. Another form of continuing education is also supported by some insurers. A monitoring device can be installed in the vehicle to report on unsafe driving habits. Insurers do not get the information, but some provide a discount for you having access to it.

Shopping Around

Insurers sometimes specialize in insuring a certain demographic, and quotes can be substantially higher with some providers. Taking the time to compare the charge for adding a teen driver to the current policy with other providers can be worthwhile. Discounts that are available with through another provider may make changing policies a good idea.

Special Discounts for Reduced Insurance Risk

Good student discounts have become quite common today. Up to 15 percent discounts are available for students with a cumulative GPA of 3.00 or better. One tactic to encourage good grades and safe driving is to have teens pay for their insurance. Unlike money for end of semester grades, a reduced premium means more money in their pocket every month.

Insurance premiums are a close track of risk, so parents of teens with lower premiums will have two reasons to smile. Taking full advantage of every discount available will require teen cooperation, and this is an excellent indicator of the responsibility needed for safety.

Christopher Jensen is a writer and car enthusiast offering advice on how to get an auto insurance quotes comparison,North Carolina auto insurance


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