As much as you avoid the inevitable, your children will still go through their teens. Part of that growth is becoming a teen driver. They need to spend more time practicing driving on the road to make them better drivers and more experienced. Most parents fear their teens are no longer kids and must learn to drive. In addition to the parents’ worries is the increased premium it entails on their existing car insurance, should they consider adding them. What auto insurance discounts are available for teenage drivers?
The great news is that there are discounts that you and your teen may avail of. Some insurance companies grant discounts based on your child’s performance and other factors that can be considered. We devised a list of discounts you might try to lower your premium. As the best independent insurance provider in Denver, CO, we would like to show you some tips to lower your insurance premiums if your teens will be drivers soon.
Undergo A Teen Driving Program Before Availing Insurance Discounts for Teenage Drivers
Learning how to drive is not possible overnight. It may take days or weeks to learn that skill. Your teens may know the basics, but having thorough guidance from an expert is better. You can teach them how, yes, but in a driving school, everything will be adequately explained. From the function of every part of a car, the steps to do before and after driving, and the rules to follow on the road. Driver education and training provide a 6-hour lecture that lasts for months. That is to make them more proficient on public roads.
Some states require teens to undergo this training. Submitting the proof of finishing that course to your insurance provider acquires a discount on your premium. Some insurance companies offer a 10% discount. They prefer teens to pass a driving program because it is safer for a teen to drive with proper training. Safe driving means less danger and fewer accidents.
Add Your Teen’s Insurance to Your Policy
If you decide to purchase a new car for your teen, you might want to know if he must buy his own insurance policy. The answer is NO. A good credit score doesn’t apply to decreasing your premium for your teen. Your teen is also not yet legal enough to sign the agreement alone. You still need to co-sign the contract as his legal guardian.
Good to know that buying a new car for your teen and adding it to your policy qualifies you for a discount for having multiple vehicles. Conversely, it doesn’t mean you need to purchase a new car for your teen to have that discount. You may add him to your insurance policy, and he won’t be charged as long as the teen is not licensed. Just inform your insurer that you are adding your teen to your policy.
Students (Teenage Drivers) With Good Grades Earn Insurance Discounts
Teen’s good grades earn a discount on your policy. If he is on the dean’s list, an honor student, or has an average of B, almost 15% can be applied to your discount on your auto insurance. Higher premiums are given because of the teens’ lack of proficiency in driving. But with good grades in school, you may avail of the discount. The explanation is that students who ace in studies are more responsible.
Responsible students mean they are also responsible drivers. Teens must know that to keep this discount, they should practice safe driving. Traffic violations and accidents may cause some increase in your premium. Most young drivers are quite reckless, and boys get a higher percentage than girls.
Older Cars Are Cheaper To Insure
It is a better choice to choose an older car for your teen. Also, it is way cheaper to insure than new and expensive cars. It is easier to repair, and the cost is not much, so it is easy to replace. That’s why insurers prefer to advise you with that type of car for your teens if you are looking for inexpensive policies. Brand-new cars are expensive to repair and easily attract thieves with high insurance costs.
However, it must be safe to drive and would not endanger the driver’s life. If that happens, another rise to your premium will occur. You must prefer an older car with safety features that do not compromise the quality you are looking for. Also, try to talk to your insurer about the right car to insure at an affordable price. They know the brands and their models that can be insured with a lower premium.
Good Driving Records of Teenage Drivers Can Earn You Insurance Discounts
If your teen continues to perform well on driving as he becomes legal, his premium lowers as he ages. That means he has a good record showing no or fewer violations. Insurance companies reward good drivers with lower rates on their insurance policies.
Since teen drivers often commit accidents and offenses, it is an achievement for them if they can make a clean driving record. There goes the advantage of taking a driving education. The more they are knowledgeable about proper driving and have more practice as they drive, the more their driving skills will upgrade. These will make them good drivers and might earn a good reward for discounts.
Teenage Drivers Bound To College Get Insurance Discounts
College students that do not have access to a car unless they go home during vacations and breaks would likely earn a discount. Some insurance companies provide a discount for teens going to college. It is called the “distant student discount” or “student away discount.” Some require that these students are 100 miles or longer away from home. They must be studying full-time and have no access to anyone’s car while in school.
Other parents fully remove their teens from the insurance policy. Some of the insurers allow that and call them “deferred drivers.” You can save a lot while your teen is away but keep in mind to insure him again once he returns from vacation. He will use his car or one of yours, which is necessary for security.
Assign Teens As A Primary Or Second Driver
Adding your teen to your insurance policy must be all clear to you. Including them would give a make or break to your policy. One way to reduce the increasing amount of your insurance is to assign your teen as the primary driver. You then have to ask your agent if it is possible. It is more inexpensive if they would agree. Also, it might be allowed if your cars are three or more than that.
Another scenario is if you only have two cars, your teen would be considered a secondary driver by your insurance provider. Yes, you are the primary driver, but you can not be the same primary driver as the other car. However, if you have multiple cards, you can be the primary driver for most of the cars you own. Just remember to assign an older car to keep lower insurance rates.
Install Telematics
Teen driving often comes with a higher possibility of accidents on the road. The reasons behind these are being inexperienced, reckless, and pretty adventurous, leading to uncontrollable risks. These misfortunes earned records and therefore launched the rules and regulations for teen driving. However, isn’t it unfair to compare your teen’s good driving skills and record to others who are reckless? Thus, your insurance rate increases because of that belief.
Telematics has been a very good tool for monitoring driving skills and records. It is a box the size of a smartphone and features like GPS and processing units that record information. The data includes travel distance and speed, how many trips in a day and its time, and how smooth the driving is. It is then transferred to a server through a satellite. The data is uploaded to each client’s web portal and can be viewed by them to see their driving performance.
Enroll In Defensive Driving
Most teens encounter driving accidents due to recklessness and inexperience. Yes, enrolling them in driver education is good, but it is also a good choice to let them undergo defense driving. This additional training will teach your teens proper behavior behind the wheel and practice safety by improving decision-making.
Defensive driving discounts on insurance are not available in some states, some do not offer such discounts. It is best to check with your insurance provider if they offer that. This training to waive a violation won’t make you eligible for this discount. Also, to keep discounted, you need to update your knowledge on defensive driving regularly. Some insurers require retaking the course every 2 years to avail of the continuous discounts.
Things To Know That Affect Teen Auto Insurance Rates
Some factors affect insurance rates when it comes to insuring teens. You might have overlooked the causes and be surprised why the price is higher than expected. Here are some of the reasons why.
- Teens tend to encounter risks more than adults. Since it is their first time driving a car, you won’t expect them to pay attention to the rules and regulations on the road. They are more interested in feeling the rush of being able to drive on their own. They are still learning the process and getting used to it. Being inexperienced leads to some uncontrollable events they may encounter while traveling. Hence, the insurance rates are higher for teens than adults.
- Teenage girls have lower rates than boys. Teenage boys are said to be riskier than girls when it comes to insurance. Girls are more responsible and avoid violations as far as they can. Usually, boys or men do not wear seatbelts, often engage in offenses, practice reckless driving, and have a dangerous DUI ( Driving Under the Influence).
More Info About Insurance Rates
DUI refers to the offense of being under the influence of drugs or alcohol while driving. This often leads to accidents because it disables a person’s ability to drive safely. Women are more cautious and attentive to details such as rules and risks they might run across the road. These factors help compute the final rates and are lower than men’s.
Teenage boys’ insurance rates decrease yearly until age 25, when it gradually drops. It won’t go up unless he reaches the age of 65 to 75 years old.
- Auto insurance rates vary by state. Auto insurance rates are different in every state. By performing well and having good records, it will decrease in time. Colorado lands 11th place among other states featuring their auto insurance rates for 2020. Michigan is still in first place with its most expensive auto insurance rate. The factors that affect and differentiate the premiums with each state are the unique insurance strategies, thick population, plenty of uninsured drivers, and pricey lawsuits.
Conclusion in Having Insurance Discounts for Teenage Drivers
Teens are stepping on the stage where they need to be more responsible for their actions. That is when they decided to learn things such as driving and being out on the road to explore. It’s quite expensive to insure them and might put your premiums on the rise. But the call for security is what an insurance company provides for parents who worry about their teens’ safety. There are discounts you may apply with your insurance, granting that your teens comply with the qualifications needed. This will help you lower your policy rates.
You may ask our agent about these discounts available for you and your teen. Let us help you with the best offer we can give you. Call us today here at Team AIS in Denver, CO, and we will answer any question you want to clarify with us, and we will gladly guide you in choosing the right policy that best suits your needs.