As a parent, you long for the day when you can finally see your teenage son or daughter get behind the wheel. When they come of age and can finally go for their first drive, you are excited but there are some worries that lurk at the back of your mind.
Car insurance coverage is one of them. Teenagers can be reckless (due to lack of experience in driving plus their nature) and insurers know this. They therefore charge a lot in insurance (more for boys). But you do not have to pay all this. Here are some tips that can help you save some money.
1. Get all the discounts on offer
There are many discounts that car insurers will offer your teenage driver. Among these is the good grade discount. For this, insurers will usually give great discounts for students with good grades (B and better). Encourage your son or daughter to get these good grades and you will be paying far less in premiums. Students who go away to college are also eligible for discounts especially if they do not go with their cars. Plans are made that give huge cuts on the premiums while the driver still gets coverage when on vacation. Enrolling the teens for driver’s education will also help get a discount. As for you, maintain a good credit history and you will get good rates.
2. Avoid luxury cars
Luxury cars are more expensive to insure than moderate cars. Also, used cars are cheaper to insure than new cars. These are things you need to bear in mind when getting the car for your teenager. A small car with a small engine will be in the cheapest insurance groups which will help save the much you spend on the insurance. Cars that have safety features and anti-theft protection will also get discounts.
3. Raise your collision and comprehensive deductibles or drop their coverage entirely
Raising your deductibles will lower your premiums. Increase your savings instead of giving the money to the insurer to avoid filing for small claims. These will ruin your image and render you unqualified for a claims-free discount. If your car is old, drop the coverage entirely. You may be paying more in premiums than you could ever get if you file a claim. Find out what the value of your car is and weigh between paying for insurance and letting the car operate without these. If it has a low value you could be just losing money that can never be regained.
