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There's nothing like the gut clenching terror that comes along with handing over your keys the first time-unless it's the feeling you get when you see what having a teen driver in the house is going to do to your car insurance rates! Teen drivers are 60% more likely than their parents to be in an accident, and car insurance companies are going to make you pay for that difference. Here's a look at how you can pick up insurance for your teen without killing your bank account.
1) Limit the amount of time they spend out on the road. Most car insurance companies are going to ask for a detailed run down on where, when and how often your teen is going to be out on the highways. Teens who drive back and forth to school and work are much more likely to be in an accident than ones who go out on the occasional Saturday. Limiting the amount of time they spend behind the wheel is going to be better for both of you.
2) Crack the whip at homework time. Your job and your credit score both factor in when your insurance company is calculating your car insurance rates. Since your teen's "job" is to go to school and they aren't eligible for a credit card to help build a credit score, your car insurance company is going to want to know what their grades look like. Honor roll students are eligible for discounts on their insurance, so give your teen a push to keep up their end of the bargain.
3) What's your teen driving? Expensive cars cost more to insure than clunkers, no matter who's behind the wheel. Handing over the keys to your Jag is going to hurt your insurance rates, so if you have another option for your teen you might want to use it. Remember, there's a reason most parents pick out clunkers for their kids' first cars!
4) Did your teen take a Driver's Ed course? Driver's Ed adds positive points onto your license, so if your child hasn't taken a class (or if it's been a few years) you might want to encourage them to take a driver improvement course. Most counties offer them, and once they finish the class (which usually only lasts two to three days) they'll be eligible for discounts on their car insurance rates.
5) Call around. When you add a teen driver to your car insurance is a good time to start exploring your insurance options. Some companies are more conservative with their insurance rates for teen drivers than others, so you might be able to save just by switching providers. It's worth a try.
6) Keep their record clean. The best thing for you and your teen is to make sure your teen isn't constantly racking up speeding tickets and traffic violations from accidents. Teach good driving habits, and set a good example. Remember, they're going to drive the way you do. If you're an aggressive driver don't be surprised when your teen is too.
7) Is your teen helping to pay for their insurance? Believe it or not, a great way to keep your car insurance rates down is to have your teen pay all or part of the difference in your insurance premiums. When they're spending their money they're going to be a lot more respectful of the need to keep their insurance costs as low as possible.
Sometimes parents do not consider giving car insurance for their teens. They always think that they will take control of the car and they will always be available to accompany them when they drive. Rules are set and they should not be broken. But teenagers are not that obedient anymore. They might take your car in the middle of the night and risk themselves to potential dangers. Almost 12% of fatal car accidents are from teenagers who drink and drive. You know how teens are these days, house parties and getting drunk even under the legal age is a trend. So, for their safety and your security, put them under a young driver car insurance.
You might be surprised that teen car insurances are very expensive. The reason for this is that insurance companies perceive teenagers as accident prone. They take a bigger risk of spending more with these inexperienced young drivers. With their age and maturity, they are believed to be not responsible enough compared to other age groups. You will notice that when they reach the age of 25, their insurance premiums go down a bit, probably because they can handle themselves well in the road at that age. But for now, you just have to save up for that insurance, or better yet, look for ways that you can reduce the outstanding amount.
Now that you have a good reason to give your teen insurance, here's what you can do to keep a low premium. Believe it or not, some insurance companies can give you discounts when your teenager is on the honor roll. So, before they learn how to drive, encourage your children to study hard to get those grades high and achieve a spot in the top 10. Insurance companies favor discount proposals for these kids because of them being responsible in their academic performance. If they are conscious about doing good in school and they do not take achievement for granted, how much more to avoid traffic violations, right? They are more mature than other teenagers.
We know that you can teach your teenager how to drive and let them know the basics of traffic rules. Guess what? It is better to enroll your teen to a driving course and let them receive a pass certificate. It does not imply that you are incompetent in educating your child with driving knowledge. The main reason for this is that a 10% discount can be given when you present a certificate that your teen is good for driving. Keep in my mind that your teenager should not fail this course or this might invalidate the price cut.
The most important goal in giving your teen their car insurance is that, when something bad happens, you will have some financial back up. If not some serious accident, it is to insure you of minor damages because teenagers tend to become clumsy and have your car end up with dented car doors and a smashed up tail light. However, even if you have insurance, always make sure that you teen learn to drive safely.