If you have a teenager and you are thinking of adding them to your auto insurance policy, start preparing your budget for a premium increase. According to statistics, adding a teen to your insurance can increase your rates by up to 90%.
This is because teenagers are new drivers with no driving history and, thus, insurance companies view them as high-risk drivers. For instance, teen drivers between the ages of 15 to 19 are four times more likely to crash than older drivers.
Unfortunately, even if your teen has a clean driving record, they will face high car insurance rates due to their lack of driving experience. However, you can still save money on your teen’s auto insurance.
Here are three tips that can help you reduce your teen’s auto insurance.
1. Compare insurance companies
The best way to find cheap auto insurance for your teenager is to compare quotes from different providers. However, when comparing insurance quotes, don’t go for the lowest price simply because it’s cheap.
Instead, compare the policies and the coverage each company provides before choosing one that best suits your teenager’s needs. The goal is to find cheap auto insurance with the best coverage.
2. Don’t put teens on their policy
Purchasing auto insurance solely for your teenager is very expensive. For instance, the average annual rate for a teen’s policy is $2,267 compared to a cost increase of $621 when you add them to your insurance policy. Therefore, you’ll be paying 365% more by placing your teenager on their insurance policy.
3. Ask for discounts
When shopping around for teen auto insurance, ask your potential provider if they provide discounts such as:
• Good student discount: when your teen has a good grade point in school
• Driver training discounts: when your teenager takes certain driver-training classes
Additionally, purchasing a car with safety features, such as anti-theft and anti-lock, can lower your premium rates.
Need auto insurance?
EZ Insurance is a local insurance company providing cheap auto insurance, home insurance, and commercial insurance to clients in Austin, Texas. Contact us today to get the best auto insurance quotes for your teenager.