While teen drivers only account for 7% of drivers on the road, they account for 11% of the spending on accident-related injuries. Because of this, young male drivers pay the most for auto insurance out of any other age and gender demographics. Before your teen gets on the road, you need to make sure you get them the best insurance for young drivers.
Insurance rate can be affected by make, model, and age of a car. Even two cars, a year apart, that are otherwise identical can have extremely different insurance rates because of changes to safety features. Finding the best insurance for your young driver and their vehicle entails just as much attention to detail.
The best insurance for young drivers is the one that gives your driver full protection while not breaking the bank. Follow these 7 tips to make sure you end up with the best deal.
1. Get On A Parent's Policy
If the young driver still lives with their parents, it makes perfect sense to stay on their insurance policy too. Even if the driver is away from home for school, staying on a parent's policy is a win-win. Not only will savings be high, but you could get an additional discount from your insurance company for extending coverage.
Parents who manage the family phone plan know the savings that can come with family plans. Insurance companies offer similar discounts when you buy from them in bulk.
Because most young people don't think about insurance as much as they should, it's never to soon to get them to consider why to invest in insurance early.
Young drivers usually don't make a lot of money so saving up to 25% on insurance could be well worth the effort of becoming part of a multi-car policy with family.
2. Take The Cheapest Car In The Family
You can always save money on car insurance when you connect a driver to a specific vehicle. If your family already has multiple cars, don't connect your young driver to the most expensive luxury vehicle you own. The best insurance for young drivers will rely on the kind of car that they drive.
If they are connected to the cheapest car in the household, you'll see the rates drop quickly. The cheapest, oldest car will be the cheapest one to insure.
Call your insurance company to double check the limits of your policy and see if this helps bring the price down. Otherwise, your insurance company might connect your young driver with the most expensive car in the household to protect themselves and also to make money.
3. Look Out For Discounts
There are lots of ways to lower rates on the best insurance for young drivers. Discounts are available for students who have perfect attendance and good grades. There are also discounts available for college students to go away to school.
Even taking note of mileage that young drivers use can lead to a discount. A young driver who only takes the car from home to school twice in a semester could save a great deal on their insurance premium.
As texting and driving become a serious concern for insurance companies and parents of teen drivers, there are ways to turn concern into savings. Several insurance companies now sponsor or promote the use of apps that block texting and calling while a car is in motion. If your young driver is willing to install this app and adhere to its limitations, you could see another discount available.
If your young driver is still in high school, call the driver's ed department. They might know of some policies that could add to some additional savings for your young driver.
4. Take a Safety Course
It can be hard to get your young driver excited about sitting in a classroom, especially on an evening, weekend, or early hours before school begins. If they're willing to take a driver safety course, they could end up receiving a serious discount on their car insurance premium.
Call ahead of time to see that the course you sign up for leads to a certification recognized by your insurance company.
While some government regulations require that your insurance company offers a discount following completion of a course, this isn't a blanket rule. In some areas, you could receive a 5% discount while in others you'll end up seeing a much more substantial discount, nearing 20%.
Learn about the types of courses available and find something that fits into your young driver's busy schedule. It could turn out to be well worth the effort.
5. Let Tech Do The Talking
As mentioned above, there are apps and technology that can help lower your young driver's insurance rates. The best insurance for young drivers in the coming years might be tied to the telematics industry. Telematics entails the installation of a small device in your car that can track its usage and your young driver's driving habits.
While it's no fun to have someone looking over your shoulder while you drive, installing a little black box might go unnoticed after a while. That is, outside of the noticeable savings on your insurance rate.
As you drive, this device tracks for speeding, the times of day that the vehicle is driven, and even harsh braking habits. Combined with data from a downloaded app, this could lead to a serious premium adjustment after a few months being monitored.
If mileage is limited and driving doesn't often take place in the wee hours of the morning, serious discounts could be applied.
The Best Insurance For Young Drivers Doesn't Have To Be Expensive
If you're looking for saving for your young driver, there are a multitude of options. The most important factor in saving on insurance has to do with a great driving record. If your young driver adheres to the speed limit religiously and drives defensively, discounts will roll in over time.
If you're looking for more tips on how to save on insurance, contact us for a customized savings strategy.