The Way to an Inexpensive Teen Auto Insurance

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Things to Remember...
  • Thankfully, there are several ways to purchase an inexpensive teen auto insurance contract and leave more money available for other things like gas, clothes or the college fund
  • While driving an inexpensive car may be an effective way to keep insurance rates down, if the vehicle is not reliable or safe, then the savings may not be so great
  • Depending on their circumstances, a teen’s car may not require as much coverage as other drivers
  • Some insurance providers reward the good grades of teenagers by offering them a discount on their vehicle insurance

The costs that come with owning a car can quickly add up, so if you’re a teenager or parent who is in the market to buy auto insurance, finding ways to save money is extremely important.

Thankfully, there are several ways to purchase an inexpensive teen auto insurance contract and leave more money available for other things like gas, clothes or the college fund.

Find affordable insurance for your teenager now by typing your ZIP code into the FREE quote tool that is provided below!

While many teenagers are responsible and safe drivers, they typically pay more for car insurance because providers consider them high-risk motorists.

Statistically speaking, teenage drivers aged 16-19 are four times more likely to crash a car than their older counterparts, according to the Center for Disease Control and Prevention, insurance companies know that teenage drivers are more likely to file a claim that will cost them money, and therefore, they charge teens higher premiums.

Take Driving Lessons

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One of the best ways to lower a teen’s auto insurance premiums is by enrolling in driving lessons.

Not only do lessons improve a person’s driving skills but also most insurance providers offer discounts to teens that have completed them.

If you’re a teen’s parent, enrolling them in such classes may be an extra expense, but the peace of mind you’ll receive and the money you’ll save over the long run will make it well worth it.

You can find driving lessons in your area by searching online or referring to websites like US Driving Lessons.

Use the Family Policy

If you’re a parent with a solid driving record and have been a reliable customer for your insurance provider, you may want to consider adding your teenager to the family’s car policy.

You will likely see an increase to your auto insurance premiums, but overall, it will probably be less than what your teenager would pay if they purchased their own.

In fact, some insurance companies offer discounts to families that purchase multiple policies from them.

On the other hand, if you’ve been involved in an accident, received several speeding tickets, or drive a rather expensive car, your teen may be better off getting their own insurance.

Some companies offer discounted policies for younger drivers, but typically they come with certain restrictions in terms of when and how often they can drive.

For example, a teenage driver with such a policy may not be allowed to drive after a certain time of night, or, they may only be allowed to drive on the weekends.

Good Grades

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Not only is performing well in school an important part of building a teenager’s future, but it could also save them money on their car insurance premiums.

Some insurance providers reward the good grades of teenagers by offering them a discount on their vehicle insurance, which depending on the company, may range from 10 to 20 percent.

If your teen qualifies for the discount and maintains the necessary grades over a period of time, the savings could be substantial.

Be sure to ask your provider about any discounts they provide for good students, and typically, the company will ask to see the teen’s report card or academic transcript.

Discounts of this nature are usually only available to full time, registered students, and the grades required may vary. Often a B average or higher is needed.

Drive an Inexpensive Car

Just like any other age group, the more expensive the car a teen drives, the more the insurance provider will charge to insure the vehicle.

The more valuable the car is the more it costs to repair it if it’s involved in an accident, and as a result, insurance companies charge more for the coverage.

In addition, many new and luxurious cars are more likely to be stolen, which also make them more costly to insure.

In other words, if you want to save money on your teen’s car insurance, then having them drive a cheaper, less flashy car is an effective way to lower their premiums.

Many automobile media outlets, provide information about which cars are the most expensive to insure.

Drive a Safe Car

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While driving an inexpensive car may be an effective way to keep insurance rates down, if the vehicle is not reliable or safe, then the savings may not be so great.

Cars that are equipped with modern safety features such as airbags, anti-locking brakes and crumple zones, for example, are less likely to be involved in serious and costly accidents.

The lower the chances of an accident, the lower the insurance rates will be.

By driving a car with a good safety rating, teenagers will save money on their car insurance. They will also be better protected on the road.

The U.S. Department of Transportation oversees a Safe Car program that outlines what vehicles are especially safe to drive and what safety features drivers should consider.

In terms of teenage drivers specifically, The National Highway Traffic Safety Administration also provides information about driving safely.

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Raise the Deductible

Another way for teens to reduce their insurance premiums is by signing a contract that has a higher deductible. The deductible is the amount of money you’re required to pay when you file a claim after an accident; your insurance provider pays for the remaining damages.

If your deductible is $200, then anytime you file a claim you must pay $200 towards the repairs and or costs.

The higher the deductible, the lower your premiums will be, because the insurance provider does not have to pay for as much of the damages.

While, in practice, paying a higher deductible is an effective way to reduce insurance premiums, it’s important to make sure that you have the money to pay for the deductible if needed.

If having extra money on hand is rare, then it may be wise to set the deductible aside in advance.

Keep a Good Driving Record

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Because teenagers are already considered high-risk drivers, it’s extremely important to obey the rules of the road and keep a clean driving record.

Any driver who is found responsible for causing an accident or receives several traffic tickets will be forced to pay higher premiums, so if a teen ruins their driving record, the consequences could be costly.

Avoid high-risk or illegal driving conditions like talking on a cell phone, not wearing a seatbelt, driving rambunctious passengers, or speeding. The fewer distractions a driver has, the less likely they are to receive a ticket or get in an accident.

Carefully Choose Coverage

Insurance premiums are also based off the amount of coverage a customer wants for their car, so in order to get the best value for your dollar, it’s important to carefully consider what kind of insurance the car requires.

Depending on their circumstances, a teen’s car may not require as much coverage as other drivers.

For example, if a young adult only plans to drive occasionally on the weekend, then they may not need to purchase as much insurance as another teen that drives to and from school daily or back-and-forth from work.

In other words, if the total mileage they’re driving is limited, the insurance provider will probably offer a lower rate for the car’s insurance.

Of course, just like any driver, some of the other factors to consider when purchasing car insurance include:

  • Do you or your teen drive in heavy or light traffic?
  • Do you have to drive at night at all or is it mostly during the day?
  • Do you live in a region that is prone to extreme weather or severe winter conditions?

The answers to these questions will determine what kind and how much insurance the teen needs for their car.

All drivers must carry liability insurance for their car, which covers the damages another person or vehicle received from an accident you’ve caused. The minimum insurance requirements, however, vary from state-to-state.

Because most teenage drivers are inexperienced, many jurisdictions encourage them to purchase collision insurance as well.

This covers damage to their car if they’re responsible for an accident.

Some teens may also want to consider additional policies like Personal Injury Protection insurance for example, but this depends on their specific circumstances and where they reside.

Compare Insurance Providers

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Last, but not least, another important way to purchase an inexpensive auto insurance contract is to research various providers and compare the rates you’re quoted.

Although it may take a little extra time to conduct the research and find various insurance rates, locating the best and cheapest coverage could save you a significant amount of money.

In addition, many companies will match their competitor as a means to get or keep your business.

Some of the ways to find out what the major insurance providers charge to insure a teen’s car include:

  • Contacting the insurance companies directly
  • Meeting with an independent broker
  • Talking to a bank’s insurance expert
  • Referring to a website that focuses on comparing insurance rates

Click here to locate affordable insurance for your teenager’s car now by typing your ZIP code into the FREE quote tool below!

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