If you’re a parent, you likely have mixed feelings when your teen becomes a licensed driver. It’s a relief to know your days of playing chauffeur are over. But the cost of insuring your new driver is frightening. Here’s how to reduce your teen’s auto insurance rates and maybe calm your fears.
Shop around for an insurance provider
Take advantage of the competition between companies. Shop online or call around to compare at least three quotes. This will give you a good sample of what's available without becoming overwhelmed with options. Keep in mind, it’s often cheaper to add your teen to your policy instead of getting them one of their own. Remember, though, cheap insurance doesn’t always mean good insurance. Don’t sacrifice coverage for price.
While you’re comparing provider options, be sure to check out LGFCU’s comprehensive and affordable auto insurance for both experienced and newly licensed drivers.
Buy used and save
Typically, an older car will cost less to insure than a new car. Teens are more expensive to insure. With fewer hours behind the wheel, they have substantially more accidents. The data also shows boys have more accidents than girls, making them even costlier to insure. Putting them in a vehicle that is safe, but seasoned, could result in a less expensive policy.
Ask about the discounts
Ask the insurance agent for a teen driver discount based on your teen’s good grades. Most policies require students to maintain at least a B average or better to qualify. If there's a discount, it will likely vary depending on the insurance company. Nonethless, every penny saved counts. While you’re at it, ask the insurance company about other available discounts for successful completion of a teen driver safety class or signing a safe driver contract.
Let the insurer track driving
Larger insurance carriers have rolled out programs using telematics. These small electronic devices attach to the car and allow the insurer to track your teen’s driving habits. It collects data on speed, braking, miles driven and time of day your teen is on the road. The insurer then uses the data to improve your savings.
Tell your insurer when they are off to college
The majority of college students can’t have a car on campus. Be sure to update your insurance company if this is the case since some companies offer a distant driver discount. This reduces your insurance costs while your teen is away at school.
Enjoy this milestone with your teen. Use these tips to find the auto insurance policy that protects your young driver and your budget.
The advice provided is for information purposes only. TruStage® Insurance products and programs are made available through TruStage lnsurance Agency LLC. TruStage® Auto and Home Insurance program is offered by TruStage Insurance Agency LLC and issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by your Credit Union. TruStage products are not available through the branch network. For information on other insurance products available to you, contact your local branch.