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Insuring Teenage Driver Discounts

td-3Remember the day that you brought home that little bundle of joy?  You counted the fingers and toes, and documented every first, from smile to tooth to first day at kindergarten.  You attended so many elementary school concerts that you hum, “Fifty Nifty United States” as you walk through the grocery store. Little League games, middle school graduations and maybe even a Quincinera or Bar Mitzvah…and then your teenager gets his-her driver’s license.

Just when you tell yourself that Junior is really a pretty good driver and you shouldn’t bite your nails when he’s on the road you check about putting your teenager on the policy.  Right about…THEN…is when sticker shock kicks in.  Having a little boy seemed like such a good idea at the hospital.

The unhappy statistics are these:  Insurance rates will go up an average of 44% when a male teenager is added to a car insurance policy.  While the rates go up as well when girls are insured, the increase is about 32% industry-wide.  The reason for the difference is found in the actuarial charts under both “claims” and “citations.”  Normally when boys and girls are together, the boy drives.  Normally when boys and girls are together, the boy drives faster.

However, insuring teenage drivers discounts on car insurance isn’t impossible.

While there is nothing that can be done to fast forward Junior from a 16 year old single male to a 26 year old married male with two kids and a mortgage, WiseInsuranceQuotes.com did find a few things that you might do to have Junior insured, and feed him as well. Save Money on Insurance for Your Teen Driver. Shop rates.

1.)     Shop Like There is No Tomorrow:  Insurance rates vary from company to company often within the same state.  Rates for insuring teenage drivers can vary even more.

 2.)    Check Your Perks at Work:  “Some discounts you get as a parent, such as an employee discount, apply to the overall car insurance premium and therefore can lower the teen driver’s premium too,” says Ron Moore, senior product manager for MetLife Auto and Home in Minneapolis.

 3.)    Stay on Junior About Those Grades:  Most insurance companies offer a 10-20% discount on Junior’s entire coverage package if he maintains a 3.0 GPA.  This discount can be carried clear through his college years.  Keep in mind, though, that the insurance companies will monitor the transcripts at least once a year, and a surcharge will apply if Junior’s grades aren’t as sterling as you said they were.  This discount can be part of another discount plan known as…

 4.)    … The Parental Contract:  Ron Moore goes on to add, “Some insurance companies will give a small discount of less than 5 percent if a student agrees to sign an agreement with their parents to follow certain rules such as not driving at night or not driving with friends in the car,”  The conversation can go something like this:  Junior, I need you to sign this innocuous little document stating that if your grades slip below 3.0 you will have to take out an individual insurance policy for yourself.  Expect to pay $2000.00 a half year for liability coverage alone.”  Junior may not have graduated from high school yet, but he can add.

 While your teenager may fuss and fume about the details of the contract to insure teenage drivers cheaper and the G.P.A. requirement, he knows that it beats the alternative…namely walking.