How To Avoid Overpaying for Auto Insurance for a Teen Driver

It’s a scary fact, but all over the world, 1.2 million people die from car crashes each year. So, it’s obvious that as a parent, making sure that your new teen driver is safe on the road and has the proper insurance is one of the most important things you can do for them. Unfortunately, teenage drivers are especially likely to be involved in auto accidents.

However, even though you want to keep your teen safe in their insured vehicle, you want to make sure you can afford that coverage as well. Many parents find themselves constantly overpaying for things they don’t need or use. But, there is some good news here. There are ways to keep your car insurance rates low and prevent yourself from paying too much. Let’s take a look at a few of them.

Keep Your Liability Limits Low
It’s no secret that teens have a tendency to get into car accidents. Whether it’s due to them being distracted, getting hit by someone else, or due to inexperience, crashes involving teens will happen. When teens do get into crashes, they tend to not be alone, meaning they have one or many people in their vehicle with them. The more people in their vehicle, the higher the liability. For all these reasons, insuring young drivers can be expensive. Encourage your driver to avoid traveling with a ton of people in their car, which may result in a lower liability limit. If an accident does occur, the resulting costs may be lower as well.

Assign Your Vehicles
Say you drive a BMW and your teen drives a generic SUV. If you decide not to assign the vehicles, your insurance company may assume that your teen is driving the BMW or the more expensive car. If they get into a crash or something happens to the vehicle and the insurance company isn’t sure which car is theirs, the costs to the whole family can go through the roof. Make sure you tell your auto insurance company who is driving which car, then make sure the assigned drivers stick to their assigned vehicles at all times.

Take Advantage of the Discounts
When working with your auto insurance provider, ask them about which discounts they offer. There’s a chance they offer discounts for good grades, not getting into crashes, or many other factors. These discounts can really help you save money in terms of your car insurance rates, so make sure you ask about available discounts when researching insurance quotes.

Having your teen driver properly insured is one of the most important things you can do as a parent. Not only will it help keep them safe on the roads, but it will help you with insurance costs in the long run.

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