So, your teen is about to get their driver’s license and you’re worried if your car insurance cost is going to increase. The fact is, auto insurance companies consider teens to be high-risk drivers (due to inexperience), so your car insurance premium will most definitely go up. The good news however is that there are several steps you can take to lower down your car insurance rates when adding your teen to your plan. The easiest one is getting your teen to complete a state-approved drivers ed course.
Drivers Ed courses teach safe driving habits and help lower the risk of accidents. Due to this, most car insurance companies will offer you a discount of 5%-10% on your premium if your teen has completed a state-approved drivers ed course. This is one of the ways car insurance companies promote and award responsible driving. By getting your teen to complete a drivers ed course, not only are you paving your way towards a lower premium, but you are also reducing the chances of your teen being involved in an accident.
Most state-approved drivers ed courses can be taken online from the comfort of your home and can be completed at the pace that your teen is comfortable with. We recommend taking state-approved online drivers ed courses offered by dmvedu.org. They are fun, with interactive videos and easy to complete with quizzes at the end of each section.
Once the course is completed and your teen has passed, you have the option of receiving either a digital or a physical certificate which can then be passed on to your car insurance company to avail of the discount. Similarly, if you and your teen complete a defensive driving course, it can also help lower your premium.
Other ways you can lower your car insurance costs when adding your teen to your plan:
1. Re-consider the type of car you drive: If the car you drive is high performance or unconventional, your car insurance premium will likely be much higher when you add your teen. Letting your teen drive an older car with a high safety rating is the best way to keep your premium from skyrocketing. This is because older cars are not as expensive to repair and if they have a high safety rating, then that’s a bonus.
2. Encourage your teen to good grades: A lot of car insurance companies offer discounts on insurance for teens with good grades. This is because they believe that students who do well at school are more likely to follow the rules of the roads. Having at least a B average will ensure that your teen qualifies for the discount (which can be as much as 15% in some cases).
3. Compare and Shop around: Even if you’ve been with your car insurance company for a long time and they’ve offered you the cheapest premium earlier, it is not a certainty that the same will apply when you add your teen. Try using car insurance comparison sites like NerdWallet to find the best deal you can get while having your teen on the plan.
