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6 Steps to Keep Teen Driver Car Insurance Lower

teen driversTeenage drivers are some of the most dangerous on the road, at least according to statistics on car accidents. Adding a teen to your car insurance policy will cause your premiums to go up. Following these 6 steps to keep teen driver car insurance lower can save money on insurance premiums.

Tip #1: Encourage Your Teenager to Get Good Grades

Risk assessments compiled by insurance underwriters have found that teens who maintain a higher GPA in school are safer drivers on the roads. That’s why you’ll get a discount if your teen driver maintains good grades. Most insurers offer a discount for a “B” average or better.

Tip #2: No New Cars

Buying a new car for your teen driver will send your premium skyrocketing. Instead, your teen should be driving older, less powerful, and larger vehicles because these are typically safer on the road and pose less risk. Additionally, your child will be more protected in the event of an accident and you will face less financial problems if the car does get totaled.

Tip #3: Enroll Teen in Defensive Driving Course

While most of us know these courses are required for accident-prone drivers, teens can sometimes enroll in the courses voluntarily, too. Many insurance companies will offer an additional discount for teen drivers who successfully complete such courses. Even if you don’t receive a discount, the course can help your teen be a safer driver which leads to Tip #4.

Tip #4: Keep Driving Record Clean

By keeping a clean driving record, your teenager can help keep premiums low, too. Even a speeding ticket can cause an increase in your rates because it suggests the driver isn’t being cautious on the road. Accidents, especially multiple accidents, can have a huge impact on your costs.

Tip #5: Have Driver Pay for Insurance

While adding your child to your existing policy is cheaper than taking out a separate policy for him or her, consider having your teen driver pay the difference between your original and increased premiums. By making him or her responsible for this payment and by explaining how bad driving behaviors impact those costs, you encourage your teen to make better decisions. If you pay all of the costs, your child won’t feel the cause and effect between bad driving and higher costs so they have less reason to drive cautiously.

Tip #6: Monitor Teen Driving

In many states, insurance companies can install a monitor in your vehicle to record how you drive. Then the premiums are based on your actual safe/unsafe behaviors. If you know your teen is a safe driver and your state allows this practice, consider opting for it. You may end up paying reduced premiums plus your child may be more cautious if he or she knows those driving habits are being recorded.

When your teenager gets a license and starts driving, you will have to pay higher auto insurance premiums. But by following a few of these tips you can keep those premiums affordable.

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