Auto Insurance

Lowering a Teen Drivers Auto Insurance

A new driver in the family is exciting. However, it is also the origin of stress. Aside from safety concerns, car insurance costs increase significantly.

Teen crash rates are the greatest of any age group, making them the riskiest group on the highway. Adding a teenager to the family car insurance policy can sometimes double the payments.

“While auto insurance can get pricey for teens, discounts can be found,” says Ellsworth Buck, V . p . of Insurance. Below are some discounts open to teen drivers to cut car insurance costs.

Good Grades

Good student discount rewards students financially, for succeeding in class. According to, statistics reveal that students who get a's and b's are not as likely to get involved with a car accident, making them a lesser risk for auto insurance companies. A Good grade discount varies among car insurance companies, however most require the following:

The student is under Twenty five years old

Full-time enrollment at a senior high school or college/university

Maintain at least a B average (3.0 gpa), or be around the honor roll or Dean's List.

Show other accepted evidence of good performance, if home-schooled.

Score in the upper 20 % on one of the six standardized tests.

Some insurance providers will extend the discount for any year after a student completes school.

Driver's Education

Safety may be the top concern for parents of the teen driver. The Centers for Disease Control and Prevention (CDC) report, automobile crashes would be 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, qualify for a discount. reports drivers can earn a discount as high as 10 % after completing their course. Some insurance firms have particular courses where students can earn over 15 percent savings.

Electronic Device Technology

Several auto insurers now provide electronics to monitor teen driving habits. The devices gather information for example, the amount of miles driven, speed, the number of hours on the road and just how usually the brakes are applied hard. Drivers who meet the standards can help to save up to 30 percent on premiums.

“These devices are great for safety and savings,” says Buck, of Insurance.

Distant-Student Discounts

If your student driver, resides in a school a minimum of 100 miles from your home and only occasionally drives your vehicle, you could qualify for a price reduction in your car insurance.

Car Selection

While most teens dream of getting a brand-new car for their 16th birthdays, the reality is, they'll probably 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, especially if they have a four-wheel drive option. Some car features that can cut costs include; anti-lock brakes (ABS), air bags, adaptive cruise control, lane departure warning, collision preparation systems and anti-theft devices.