When you think about car insurance for teens, what is the first thing that comes to your mind? Chances are it’s the notoriously higher rates that insurance companies charge to cover teen drivers. Based on that assumption, it is easy for parents to believe there are limited options when it comes to insuring their young driver. That is why we have compiled a list of the top four things parents should know (but often don’t) about car insurance for teens.
Adding Your Teen to an Existing Policy is Almost Always Better than Buying a New One
It is typically best to consult with your independent agent before making this decision, as unique circumstances may have an impact on which choice is right for you. However, with that said, it is relatively rare that we would recommend buying your teen an individual car insurance policy.
In most all cases, adding your teenager to your family insurance policy is the preferred option. By doing so, your teen’s short and limited driving history is offset by your good record, good credit, and history with your insurance agency, which ultimately translates to lower rates. Not to mention, all drivers in the household can drive each other’s cars if necessary.
Your Teen Might be Eligible for Discounts
Since teenagers are the riskiest group of drivers to insure, you might assume there are no discounts available to lower the cost of your premiums. However, many teens can qualify for discounts if they meet standards that are indicative of a good driver.
For example, most insurers recognize that good grades are a sign of personal responsibility. Students who make the A-B honor roll may be eligible for special discounts of up to 15 percent or more. Discounts vary from insurer to insurer, so check with Thiel Insurance Group to find out which company is right for you.
Raising Your Deductible Can be a Good Way to Save
The deductible is the amount of money you pay out of pocket for repairs to your teen’s vehicle if he or she is in an accident. As a parent, you know your teen better than anyone. If you consider your teenager a very responsible driver, raising the deductible on your policy from $500 to $1,000 or more might be a good way to save on policy premiums.
Think Twice Before Lowering Coverage
One of the worst things a parent can do is lower the amount of liability coverage on your policy. Ultimately, parents can be held financially liable for the actions of a teenager behind the wheel. If the liability protection on your policy is not enough to pay for all of the physical damages and injuries caused by an accident, you could find yourself on the hook for the charges.
Moving Away Could Mean Big Savings
When teenagers leave the nest for the first time, parents might experience sticker shock in the best of ways. When a student opts to live on a campus at least 100 miles from home, insurance rates could fall dramatically if the car stays at home. Be sure to let us know if your student experiences any significant changes in vehicle use.