Ask any parent about the most expensive thing in their life, and most of them will probably give you the same answer—their children.
You love them and would do anything for them, but let’s be honest, they can be a real drain on your finances. And as if they weren’t already costing you enough money, when it comes time for them to drive, you might just have to empty out your bank account to pay for all of the extra expenses.
One such expense is insurance, and everyone knows just how expensive it can be to insure a teen driver. Here are some useful tips to help bring that cost down.
1. Encourage Good Grades
As if you didn’t have reason enough to encourage your teen to study more, good grades are another thing that will bring most insurance premiums down. There is often a correlation between having good grades in school and being a responsible driver. As a result, if you can show a copy of a good report card, many insurance companies will award your teen with lower premiums.
2. Send Them To Traffic School
The main reason why car insurance premiums are just so darn expensive for teen drivers is mainly down to the fact that insurance companies just don’t trust them. And it makes sense—much of what makes a responsible driver comes down to knowledge and experience that is gained over time. Your teen can get a head start on that experience by taking a driving course online. This will often earn points with some insurance companies and they will lower the rates.
Most insurance policies are cheaper when they are combined with others. If you already have a good policy, add your teen onto it, and it should be cheaper than trying to find them their own.
4. Raise the Deductible
Raising the deductible on the policy will certainly lower your premium. Of course, it also means that should your teen get into a collision, your costs will be higher.
5. Get a Safe Car
If your car is low-cost and safe to drive, it will knock a lot off of the amount that you should expect to pay for car insurance. Not only does it convince the insurance company that there is less chance of a crash, but there actually will be fewer rate-raising collisions. Furthermore, cheaper cars are cheaper to repair.